The IRS has announced that it will begin accepting 2021 tax returns on Jan. 24, marking the beginning of the 2022 tax season.
This year, it’s more important than ever to file your taxes as early as possible. The IRS is backlogged and short-staffed while facing with COVID-related tax challenges for the second year in a row. The sooner you file, the better your chances of receiving your refund quickly.
What should you expect this tax season? Read on for important deadlines, extension explanations and filing resources.
When is my 2021 tax return due in 2022?
This year, the official deadline to file your taxes is April 18 — with the exception of taxpayers in Maine and Massachusetts, who have until April 19 to file. As of now, this deadline is firm, but since it was extended in both 2020 and 2021, it’s possible the IRS could decide to do the same this year, as well.
In most states, taxpayers who get a federal extension to file will automatically also receive an extension to file their state income tax return.
Additionally, the IRS is recommending you file electronically when possible to avoid delays.
What happens if I miss the tax deadline?
Firstly, if you are owed a refund, there is no penalty for filing late, though this may be different for your state taxes. Still, it’s best to e-file or postmark your individual tax return as early as possible.
If you owe the IRS, penalties and interest start to accrue on any remaining unpaid taxes after the filing deadline. The late-filing penalty is 5% of the taxes due for each month your return is behind, with fees increasing to up to 25% of your due balance after 60 days have passed. You may also incur a late-payment penalty, which is 0.5% of the taxes due for each month your return is late, with penalties increasing to up to 25% of your unpaid tax, depending on how long you take to file.
Another caveat: If you’re serving in the military — in a combat zone or a contingency operation in support of the armed forces — you may be granted additional time to file, according to the IRS.
How do I file my taxes online?
CNET has rounded up the best tax software, featuring vendors such as TurboTax, H&R Block and Jackson Hewitt. These companies can make the tax filing process much easier, from reporting your self-employed income to setting up direct deposit and helping with itemized deductions…Read more>>
Source:-cnet