It's that time of year again—tax season! Whether you're an independent contractor, self-employed, or have multiple income streams, understanding when and how to file your taxes can be daunting. While tax regulations may seem complex on paper, there are easy ways to determine what forms you must fill out and when they should be submitted.
In this blog post, we'll discuss important dates for filing federal taxes and state and local rules so that filing your taxes is simple this year.
When is tax season?
The filing deadline for federal taxes is April 15th. However, if you are self-employed or have multiple income streams, you may be eligible to file an extension, and the due date for that would be October 15th. Some states also have different filing deadlines, so it's important to check with your state's Department of Revenue or Taxation website to learn the dates.
Understanding Your Tax Year and Filing Deadlines
Understanding your tax year is important when it comes to filing taxes. A tax year is usually the calendar year from January 1st to December 31st. However, if you are self-employed, you may be eligible for a fiscal year from July 1st through June 30th of the following year.
To ensure that you file taxes accurately and on time, it’s important to know what paperwork needs to be filed by specific deadlines throughout the year. This includes 1040 forms for individuals with income over a certain amount and W-2 forms for those employed through an employer or company. Business owners must also submit all necessary documents related to their business activities, including any deductions or credits that may apply.
It’s also important to note that many states have different filing deadlines and regulations, so it’s best to check with your state's Department of Revenue website for more information. If you miss the April 15th federal filing deadline, you can still submit an extension until October 15th. However, it is important to understand that this does not extend the time you have to pay taxes - the due date for payment remains April 15th, even if an extension has been granted.
Calendar Year Filers (Most Common)
For most individuals, the calendar year is the standard tax period. Income earned from January 1st to December 31st must be reported on a 1040 form, and all supporting documents, such as W-2s, must be submitted by April 15th.
It’s important to note that filing taxes doesn’t end with submitting your forms on time. Depending on your income bracket, you may also be required to make estimated tax payments in April, June, September, and January throughout the year to avoid owing money when you submit your final return. Additionally, suppose you are self-employed or have multiple streams of income. Certain deductions can help reduce your taxable amount, so seeking professional advice or doing thorough research is important to maximize your savings.
Learn About the 8 Different Tax Filing Extensions
The IRS offers several filing extensions if you need more time to complete your taxes. Understanding how each works is important to ensure you complete all deadlines and avoid owing money or getting penalties.
Automatic Extension
This extension is available to all taxpayers and gives you an extra six months (until October 15th) to file your return. However, it only covers up to certain income thresholds, so be sure to check the IRS website for more information.
Taxpayer Advocate Service
If you need more than six months or face financial hardship, you may qualify for additional extensions through the TAS (Taxpayer Advocate Service).
Disaster Relief Extensions
If you live in an area affected by a natural disaster, you may be eligible for further extensions beyond what is offered through the TAS.
Military Extension
If you are active military personnel serving overseas or in the Peace Corps, you may receive additional extensions beyond what is offered through the TAS.
Extension to Pay Tax
If you cannot pay the full amount of taxes that you owe by April 15th, you can request an extension to pay taxes by October 15th. This will prevent IRS penalties but requires you to file your return on time.
Extension for Self-Employed Individuals
This extension is available to self-employed individuals and gives them until June 15th (instead of April 15th) to complete their returns and submit them to the IRS.
Extension for Certain Small Businesses
This extension is available to certain small businesses that qualify for the Domestic Production Activities Deduction. It gives them until September 15th (instead of April 15th) to file their returns.
Extension for Farming Businesses
This extension is available to certain agricultural businesses, allowing them to file their tax return until December 15th (instead of April 15th).
Members of the Military
If you are an active military member, you may receive additional extensions when filing your taxes. The IRS allows military members to extend their deadline to 180 days after they leave service if they serve in a combat zone or hazardous duty area.
Tips for Getting Your Taxes Done on Time
Get Organized
The organization is key when it comes to filing taxes on time. Gather your documents and information beforehand to have everything you need to complete your return accurately and efficiently.
Seek Professional Help
Tax laws can be complex and confusing, so if you’re unsure about any aspect of the process, it may be beneficial to get professional help from a tax preparer or accountant. They will be able to advise you on any deductions or credits that may apply to your situation and ensure that your returns are filed correctly and on time.
Make Estimated Tax Payments
If you are self-employed or earn an income above a certain threshold, you may need to make estimated tax payments throughout the year. Knowing when and how much to pay can help ensure you don’t owe money when filing your taxes.
FAQs
Q: What forms do I need to file?
A: If you are a single filer or married filing jointly, the most commonly used form is Form 1040. This form allows you to report income, claim deductions and other credits, and calculate the amount of tax you owe or the refund you can expect to receive. Other forms may be required besides Form 1040, depending on your situation. This could include W-2s from employers and Schedule C for businesses and self-employed individuals. The IRS has a helpful tool to help you determine which forms are necessary for filing your taxes.
Q: Are state and local taxes different?
A: Yes, many states have their own filing requirements, deadlines, and forms. The rules vary from state to state, so it's important to check with your local tax authority for specific instructions regarding filing in your area. Some cities and counties may require you to file separate returns or provide additional information.
Q: What happens if I don't file my taxes?
A: Filing your taxes is an important obligation, and failing to do so can have serious consequences. The IRS will assess a failure-to-file penalty, which is 5% of the unpaid tax for each month the return is late (up to 25%). Additionally, you may be subject to interest fees on any unpaid taxes. To avoid these penalties and ensure you properly file your taxes, it's best to plan and submit your return before the due date.
Conclusion
Tax season can be stressful, but with the right resources and guidance, filing your taxes doesn’t have to be daunting. Understanding when and how to file your returns is important in completing the process on time and maximizing any deductions or credits you may qualify for. Whether you're preparing your taxes or seeking professional help, it's critical to properly research what forms are necessary to avoid owing money or getting penalties from the IRS. Follow these tips so filing your taxes is straightforward this year!
