Last Minute Tax Filing Tips | CNN Business

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So far this tax season, the IRS has received more than 100 million income tax returns for 2022.

That means tens of millions of households have yet to submit their returns. If yours is among them, here are some last-minute tax filing tips to keep in mind as the Tuesday, April 18 deadline approaches.

These online tools could be especially helpful today if you’re scrambling to get back in before midnight. Or, if you have come to the conclusion that you need to file for an extension. Anyway, here are some key things to know:

As a result of several rounds of severe weather in recent months, for example, tax filers in most of California – which make up 10% to 15% of federal filers – as -already granted an extension until Oct. 16 for filing and payment, according to an IRS spokeswoman.

If you are in the armed forces and are currently or have recently been stationed in a combat zone, the filing and payment dates for your 2022 taxes have likely been extended by 180 days. But your specific extended filing and payment dates depend on the day you leave (or leave) the combat zone. This IRS publication offers more details.

Finally, if you made very little money last year (usually less than $12,950 for single filers and $25,900 for married couples), you may not need to file a return. But you may want to at least if you think you deserve a refund thanks to, for example, refundable tax credits​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ (Use this IRS tool to find out if you need to file this year.) You can also use IRS Free File (intended for those with adjusted gross income of $73,000 or less ) so it doesn’t cost you to file. to return

Your paycheck may not be your only source of income: If you had one full-time job, you might think that’s the only income you’ve made and need to report. But that is not necessary.

Other sources of income that may be taxable and reportable include:

  • Interest on your savings
  • Investment income (eg dividends and capital gains)
  • Get paid for part-time or seasonal work, or a side hustle
  • Unemployment income
  • Social Security benefits or a distribution from a retirement account
  • Recommendations
  • Gambling benefits
  • Income from rental property you own

Organize your tax documents: By now you should have received all the tax documents that third parties (your employer, bank, brokerage, etc.) need to send you.

If you don’t remember receiving a hard copy of a tax form in the post, check your email and online accounts – a document may have been sent to you electronically.

Here are some tax forms you may have:

  • W-2 from your salary or salaried jobs
  • 1099-B for capital gains and losses on your investments
  • 1099-DIV from your brokerage or company where you own stock for dividends or other distributions from their investments
  • 1099- INT for interest over $10 on your savings at a financial institution
  • 1099-NEC from your clients, if you were working as a contractor
  • 1099-K for payments for goods and services through third-party platforms such as Venmo, CashApp or Etsy. The 1099-K is required if you made more than $20,000 in more than 200 transactions during the year. (Next year the reporting threshold drops to $600.) But even if you didn’t receive a 1099-K you still have to report all of the income you made across third-party platforms -party in 2022.
  • 1099-R for distributions over $10 received for a pension, annuity, retirement account, profit sharing plan or insurance contract
  • SSA-1099 or SSA-1042S for Social Security benefits received.

“Please note that there is no form for taxable income, such as money from renting out your holiday property, meaning it is up to you to declare yourself, ” according to the Illinois CPA Society.

One last-minute way to lower your 2022 tax bill: If you’re eligible to make a tax-deductible contribution to an IRA and didn’t make one last year, you have until April 18 to make up to $6,000 ($7,000 if you’re 50 or older). That will lower your tax bill and add to your retirement savings.

Proofread your return before submitting it: Do this whether you use tax software or work with a professional tax preparer.

Small mistakes and oversights delay processing your return (and issuing your refund if one is owed). You want to avoid things like typos in your name, date of birth, Social Security number or direct deposit number; choosing the wrong filing status (eg, married vs. single); making a simple math error; or leave a required field blank.

What to do if you can’t file by April 18: If you can’t file in time, complete Form 4868 electronically or on paper and submit it no later than today. You get an automatic six-month extension on file.

Note, however, that a file extension is not a paid extension. You will be charged interest (currently running at 7%) and a penalty on any amount you still owe for 2022 but haven’t paid by 18 April.

So if you suspect you still owe tax – maybe you had some income outside of your job that wasn’t tax withheld or you had a big capital gain the -last year – estimate how much more you owe and send that money to the IRS with the IRS. the end of today.

You can choose to do so by mail, attaching a check to your extension request form. Make sure your envelope is postmarked no later than April 18th.

Or the more efficient way is to pay what you owe electronically at, said CPA Damien Martin, a tax partner at EY. If you do, the IRS notes that you do not need to file Form 4868. “The IRS will automatically process extensions of time to file,” the agency notes in its guidance.

If you choose to pay electronically directly from your bank account, which is free, select “extend” and then “tax year 2022” when you get the option.

You can also pay by credit or debit card, but you will be charged a processing fee. If you do, however, charging your tax bill but not paying your credit card bill in full each month could end up costing you more than just a fee. as you are likely to pay a high interest rate on unpaid balances.

If you still owe income taxes to your state, remember that you may have to go through an exercise similar to filing for an extension and paying​​​​​​to your state’s department of revenue , Martin said.

Use this interactive tax assistant for basic questions you may have: The IRS provides an “interactive tax assistant” that helps you answer more than 50 basic questions related to your individual situation regarding income, deductions, credits and other technical questions.

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