HomeIRS2022 IRS Tax Deadline: Extensions, Stimulus Credits, and Other Last-minute Concerns Are...

2022 IRS Tax Deadline: Extensions, Stimulus Credits, and Other Last-minute Concerns Are All Addressed

Congratulations for officially waiting until the last minute if you’re only starting to worry about your taxes this weekend. This Monday, April 18, is the deadline to file a return for the year 2021, often known as Tax Day.

The bad news is this. The good news is that if you’re one of the estimated 15 million taxpayers who aren’t quite ready to fold their accordion folders and call it a year, all hope is not lost. Here are some things to keep in mind.

Is an Extension Required by Monday?

The short answer is yes if you aren’t ready to file. There are, however, a few exceptions. The Internal Revenue Service (IRS) has already given an automatic extension to taxpayers who live in disaster-affected areas in Arkansas, Colorado, Kentucky, and Tennessee this year. Residents in those locations are exempt from filing until May 16, and they are also exempt from making tax payments until then. People in other sections of Puerto Rico will have even more time—until June 16. More information is available on the IRS website’s dedicated “across the country” page.

I’ll Get an Extension if That’s Okay With You. How Do I Go About It?

This is quite simple with the IRS. Its Free File program offers a list of partner companies from whom you can seek an extension. You can also request an extension if you use a tax-preparation service like TurboTax. It takes only a few minutes.

Great, I Get to Wait Until October to Pay Taxes?

Wrong. The IRS recommends estimating how much you owe and then making a payment through your tax account. If you owe money on your taxes this year, you must pay by Monday to avoid paying the penalty.

2022 IRS Tax Deadline (1)
2022 IRS Tax Deadline: Extensions, Stimulus Credits, and Other Last-minute Concerns Are All Addressed

Last Year, I Never Received a Stimulus Check. Can I Make a Claim for It?

Perhaps, but you must first ensure that you are eligible for one. The most straightforward approach is to log into your online tax account and look under “payments.” This will show you all of the payments you’ve received from the IRS, including stimulus checks. You can claim it as a Recovery Rebate Credit on your tax return if you see a statement there, but you never received it—or only received part of it. Separately, you should have received a letter from the IRS confirming your eligibility.

However, and this is crucial, you must ensure that you calculate the exact quantity. If you make a mistake, the IRS will have to modify your return, which may cause a delay in receiving your refund. Take it from the millions of taxpayers awaiting refunds from 2021 and 2020. You do not want to find yourself in Manual Review Hell.

The IRS recognizes that the stimulus checks and rebate credits process is significantly more convoluted than it needs to be, so it recently updated its FAQ website. If you plan on claiming the credit, you should read it.

All of This Is Extremely Extremely Extremely Extreme. Can I Forget About Filing My Taxes?

If you’re feeling that way this year, you’re not alone, especially given the processing above backlogs that have caused so many refunds to be delayed. If you’re owed a refund, you won’t be penalized for failing to file, but if you wait too long, you can lose that return forever, according to the IRS. If you throw in the towel and resign, you’ll be in for a world of pain and heartache in the shape of penalties and interest, including a failure-to-file liability. In the end, it’s just easier to file and get it out of the way.

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All of this is to say that not everyone, including those who earn less than the income criteria, is needed to file a tax return every year. If you’re not sure if you’re one of them, the IRS provides a helpful tool to assist you in figuring it out.

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