Taxes due April 18th. What you should know before the deadline
The time for hesitation is over. It’s time to file your taxes.
April 18 marks the deadline for taxpayers to file their annual returns. tax day Is normally April 15, but since that date falls on a Saturday and due to a Washington, DC holiday on Monday, the submission deadline has been pushed back to April 18.
As of April 7, the Internal Revenue Service has processed more than 101 million returns. The average return to taxpayers is $2,878 compared to $3,175 at the same time last year.
The lower reimbursements are partly due to the elimination of key credits available to taxpayers for the final tax Season.
Here’s everything you need to know if you haven’t filed your taxes yet:
When are taxes due?
Taxes are due by April 18 because April 15 falls on a Saturday and Emancipation Day, a Washington, DC public holiday, is April 17.
– Elizabeth Buchwald
What happens if you don’t file taxes on time?
Taxpayers who do not submit the application by the deadline must expect hefty penalties. According to the IRS, the penalty for default is 5% of unpaid taxes for each month you don’t pay, but will not exceed 25%. And that doesn’t count for additional state penalties.
If you don’t pay taxes on time, the penalty is 0.05% of unpaid taxes for each month you don’t pay, with a 25% cap.
IRS phone number to speak to an individual
After last year’s terrible service, the odds in 2023 that you could actually get someone to answer the phone with the IRS were increasing.
The IRS notes that its helplines are open Monday through Friday. Individuals can call 800-829-1040 from 7:00 a.m. to 7:00 p.m. local time.
The IRS recommends checking IRS.gov for answers first, but you can call if you’re at a loss or need other assistance.
On Monday, the IRS announced it had achieved an 87% service level this tax season, surpassing Treasury Secretary Janet Yellen’s target of 85%. Last year, the IRS acknowledged the agency was able to achieve less than 15% service levels.
IRS Customer Service Agents answered more than 2 million more calls than last year and reduced wait times by 85% in 2023. The average wait time dropped to 4 minutes from 27 minutes during the 2022 submission season.
The IRS reopened Taxpayer Assistance Centers in 2023 to provide personal assistance in many areas including Casper, Wyoming; LaCrosse, Wisconsin; Binghamton, New York; and Jackson, Tennessee. The IRS has personally served 428,000 taxpayers so far this year — or about 100,000 more people compared to the same time last year, according to Deputy Treasury Secretary Wally Adeyemo.
The IRS said it cleared the backlog of unprocessed individual tax returns for 2022 without error, which should help with processing tax returns this year.
Here is the list of additional IRS numbers to call if you need assistance.
– Susan Tompor
Can you get direct deposit if you need to change a return?
Yes, the IRS has introduced a direct deposit option for modified 1040-X returns. In the past you could only get a paper check – which delayed cash refunds.
– Susan Tompor
When are quarterly tax payments due?
You may still be completing your tax returns for tax year 2022, but the IRS is reminding everyone that tax day, April 18, is also the deadline for estimated first-quarter tax payments for tax year 2023.
Those who are self-employed or in the gig economy have estimated tax payments to make. Investors, retirees and others are also often required to make these payments because a significant portion of their income is not subject to withholding tax.
If you don’t pay the estimated taxes on time, you may face penalties.
– Medora Lee
How do I pay quarterly estimated taxes?
You should use Form 1040-ES, Estimated Tax for Individuals, which contains instructions to help taxpayers determine their estimated taxes, or visit IRS.gov/payments to pay electronically.
The IRS says the best way to make a payment is through the IRS online account. There, taxpayers can view their payment history, pending payments, and other useful tax information. Taxpayers can use IRS Direct Pay to make an estimated tax payment; debit card, credit card or digital wallet; or the Treasury Department’s Electronic Federal Tax Payment System.
– Medora Lee
Do the post offices stay open longer on tax days?
In previous years, the US Postal Service had opened post offices later on tax day for taxpayers who wanted to file their returns before the deadline.
If you’re filing a paper declaration this year, don’t expect post offices to have later opening hours.
“There are no plans to extend post office hours nationwide, especially as the IRS has given taxpayers until April 18 this year,” the USPS said in a statement.
The IRS considers returns to be timely if they are postmarked on or before April 18th. If your return is left in a blue collection box or post office after the collection time, it will be postmarked with the next date.
For added peace of mind, taxpayers can also receive a proof of postage in the event their return is lost or delayed to confirm they sent their return on time.
Visit the USPS website for details on your local post office’s hours of operation.
California taxes due in 2023
If you live in parts of California that have recently been affected by severe winter storms, flooding and other natural disasters, you have until October 16 to file your federal income tax for individuals and businesses.
More details and other state deadlines can be found here.
Should I submit together or separately?
It’s the age-old dilemma couples face every year because of the pros and cons that come with each option. A simple coin toss to decide which way to go could cost you more or result in you missing out on large tax credits and deductions, resulting in a smaller tax refund.
For example, the standard deduction for married couples filing jointly this year is $25,900 versus $12,950 for separate applicants. For newlyweds who aren’t already homeowners, this is of great concern because it probably makes more sense for them not to file an individual declaration and take the standard deduction, says Tim Speiss, chartered accountant and partner at EisnerAmper in New York.
Taxpayers filing together are entitled to more tax deductions and credits as married couples. For example, the Earned Income Tax Credit is generally only available to married couples who apply together. The EITC allows low-income households to deduct up to $6,935 from their taxes if they have three or more children.
– Elizabeth Buchwald
When are taxes due?
We know Tuesday is the deadline, but when exactly do you need to file your tax return with the IRS? Taxes are due at midnight on April 18th.
– Susan Tompor
When should you change a return?
Sometimes you file a tax return and then realize you made a mistake. Maybe you didn’t discover some documents, e.g. B. A 1099 for a mutual fund held outside of a 401(k) plan. Or maybe it’s a ridiculous miscalculation.
The IRS has an online tool to help you determine if you need to amend a statement. Taxpayers can use the Should I File an Amended Return? Tool at IRS.gov to decide if they should correct an error or make other changes.
– Susan Tompor
Where can I submit my tax return for free?
There are several services that offer free tax return preparation, including IRS Free File to file your federal return for free. Taxpayers must meet a certain income limit to use these services. For example, IRS Free File has an income cap of $73,000.
Why do I owe taxes this year?
One possible reason: The generous Advance Child Tax Credit and Recovery Rebate Credit on tax returns for 2022 have been scrapped for tax season.
According to H&R Block, other factors are whether you became unemployed in 2022 or whether you took on additional part-time jobs in the past year. Big life changes can also play a role in whether you get a refund — or have to pay the IRS.
– Susan Tompor and Brett Molina
Tax Day Offers 2023
Whether you’re filing a tax return or owing money, you can still take advantage of the deals and freebies some restaurants and retailers are offering to mark Tuesday’s tax filing deadline. Promotions range from free shaved ice to discounted pizza and donuts to BOGO deals so you can celebrate being done with your taxes.
– Amanda Perez Pintado
Does it cost to file a tax extension?
It is free to apply for a tax extension. However, it only extends the deadline for submitting your declaration. If you owe the IRS money, you still have until April 18 to pay it.
How do I file a tax extension?
You can apply to the IRS for an extension that gives you until October 16 to file your tax returns. Look for Form 4868, which is available on most websites that allow you to submit returns electronically. Residents of some states, including Arkansas, Alabama and New York, may be eligible for an extension if they lived near a disaster area.
Is the IRS website down?
As of Tuesday morning, the IRS website appears to be working as many taxpayers file their returns before the tax deadline.
More answers to your questions about the 2022 tax season
Follow Brett Molina on Twitter: @brettmolina23.
