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If you’re wondering how to file your tax return for tax year 2022 before it’s too late, you’ll be happy to know that you still have time. The tax filing deadline falls on April 18 this year, and if you file an extension, you’ll have until October 16, 2023 to file your 2022 tax return. Most states also require filing a return. income tax for the same period.
But no matter how much time you have until your tax return day, it’s important to understand the process and the steps you need to take. Let’s take a look at exactly how to file your taxes, tax return methods to consider, and what to do if you don’t have the money to file your taxes ahead of time.
The Internal Revenue Service (IRS) officially opened its doors to taxpayers looking to file their 2022 tax return on January 23, 2023. This means that individuals and families can file their taxes at any time. from that point on, although it is better to wait until all the necessary documents are at hand before starting.
Speaking of which, the The IRS encourages people to have everything they need before filing their taxes This year. “Accurate tax return can help taxpayers avoid delays or later IRS notices,” the agency wrote. Making sure your return is correct before filing can save you time and make you less likely to have to file an amended return.
For the vast majority of Americans, the deadline for filing individual federal tax returns for 2022 or requesting an extension is Tuesday, April 18, 2023. Although the filing deadline typically falls on May 15. 4, but the deadline was moved to April 18 of this year due to the Emancipation Day holiday in the District of Columbia.
Either way, note that this deadline isn’t just for filing — it’s the date all taxes owed must be paid. pay also. This is true even if you are requesting an extension to file your actual tax return. In fact, the IRS makes it very clear that taxpayers must pay their estimated bill in full to avoid the possibility of interest and penalties. So if you don’t have cash, you’ll need to use a credit card to pay your taxes or request a payment plan from the IRS. More on the options below.
There are many strategies you can use to file your tax return if you haven’t already, and some of them will help if you need it. For starters, individuals can turn to tax software for help, which can speed up the process dramatically. some best tax software program even allows consumers to file basic tax returns for free.
As an example, TurboTax allows you to file on your own or with the assistance of a professional, with costs ranging from $0 for basic, self-guided tax preparation services to $389 for full tax preparation assistance. You can also opt for a mid-level tax assistance package that helps you through the tax return process on your own with the help of live chat support.
H&R Block offers similar plans, with the option to self-file or get help with your tax return online. The company’s free version, called H&R Block Free Online, also lets you do basic tax returns for free, but you can pay more for more complex returns or help from a tax professional.
Other ways to pay your taxes include:
- IRS Free File is a public-private partnership between the IRS and various tax software companies that allows taxpayers to file online for free. Two different versions are offered: Guided Tax Returns for those with an adjusted gross income (AGI) of $73,000 or less and Free Fillable Forms for those in the tax bracket higher with an AGI above $73,000.
- Volunteer income tax support and tax advice for the elderlyan IRS program that provides basic tax preparation services at no cost to those who qualify.
- Form 1040, U.S. Individual Income Tax Return from the IRS makes it possible to file your taxes the old-fashioned way: by mail. This filing method can work whether you have basic or more complex returns that include reporting items like capital gains and investment income.
Note that these tax preparation methods are geared toward individuals or families filing basic taxes. However, the IRS provides additional tax return information for businesses and self-employed, international taxpayers, and charities and nonprofits around the world. its website.
While the method you choose to file your taxes may vary depending on your income and the complexity of your tax return, here are seven steps anyone can follow.
Step 1: Collect your paperwork. Before you prepare to file your taxes, you should gather all the necessary paperwork. This may include a W-2 form from your employer, income statements and returns on investments (1099 And 1099-INT form) and receipts for charitable contributions and other write-offs if you plan to itemize them.
Step 2: Decide how to apply. While you can mail your tax return, the IRS recommends filing your tax return online for faster processing and faster refunds. You can also use an expert to help, take advantage of tax software or file using time-honored paper and pen.
Step 3: Select the appropriate filing status. Your filing status will be based on whether you are single, married or head of household, along with other less common tax situations. You will also want to claim any dependents – usually qualifying children or relatives – as part of your return.
Step 4: Determine whether you are itemizing or applying the standard deduction. Most taxpayers with a basic tax return can use the standard deduction for 2022, which is $25,900 for married couples filing jointly and $12,950 for single taxpayers and individuals Married filing separately.
Step 5: If you owe, decide how to pay. If you do not receive your refund and you end up owed money to the IRS for tax year 2022, you need to taxpayer or apply for a payment plan. Also note that it can pay tax by credit card in many cases.
Step 6: Choose how you want to refund. If you owe money from the IRS this year, you’ll need to specify how you want the money sent to you. Options include direct deposit to a Bank accountprepaid debit card or direct deposit mobile app.
Step 7: Finish the process before the tax date. Submit your tax return by the tax filing deadline to your state to avoid possible penalties and interest.
There are a variety of tax credits that may be available when you file your tax return, including a prepayment of the Child Tax Credit. Another example is Earned Income Tax Credit (EITC), available to eligible low-income taxpayers. These and other tax credits can help you pay less in federal or state taxes throughout the year if you qualify.
In general, you’ll know what tax credits you might be eligible for when you take the steps to file your taxes online. This is especially true if you use tax softwarebecause these programs ask you specific questions to make sure you get every tax credit you’re eligible for.
For example, TurboTax Look for deductions and tax credits when you file your taxes with the goal of helping you grow your tax refund. This type of help may be needed if you’re in a situation where you’re not sure which tax credits apply, such as having student loans or are in a low tax bracket.
If your goal is to receive your tax refund as quickly as possible, you should know that the IRS recommends filing electronically and choosing direct deposit as your method of payment. Organ also take notes that most taxpayers will receive a refund within 21 days of electronic filing, as long as no problems are detected.
However, some returns may require manual review, in which case processing may take longer. The IRS also reports that, in the event that issues are discovered but they can be resolved without correspondence, taxpayers will receive an explanation in the mail about the changes that have been made by the agency.
If you’re not ready to file your taxes and are running out of time, the IRS has a formal process for requesting an extension. However, the extension only gives you more time to file your tax return — any taxes you owe are still due by April 18, 2023.
To be eligible for an extension, taxpayers must take one of the following steps:
If you do not file your return or request an extension by the deadline, do not pay fines 5% of your unpaid tax for each month or part of the month in which you file a late tax return, up to a maximum of 25% of your unpaid tax. And if you owe money and don’t pay it on time, do not pay fines is 0.5% of your outstanding tax amount for each month or part of the month in which you are late, up to a maximum of 25% of the amount you owe. In either case, interest will also be charged on the unpaid amount.
Notice that the monthly penalty for not paying is much higher than the penalty for not paying? That’s why it’s important that you file a return or request an extension ahead of time, even if you don’t have the money to pay what you owe.
However, that doesn’t mean you should ignore the bill. Taxpayers who cannot pay the taxes they owe by April 18 should set up a payment plan with the IRS as soon as possible. There are two different ways to sign up for a payment plan:
Note that taxes paid under the payment plan will accrue interest based on the amount owed and the time it must be paid in full. Interest rates are adjusted every three months and may vary depending on your tax return status. That’s why it can sometimes make sense to pay tax by credit card if you can qualify for a credit card with a 0% introductory interest rate on purchase.
In any case, it’s important to make sure you handle your taxes one way or another ahead of time. Ignoring them won’t make them go away but will eventually lead to bigger problems later on. So, if you can’t file or make your payments on time, make sure to contact the IRS by April 18 to request an extension and/or payment plan and keep your taxes from returning. become a greater burden.
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