It is that time of the year again. Some are anxiously wondering when are taxes due. It is not yet the moment to panic; there is still plenty of time to organize your documents and do the filing the proper way.
However, it is always best to keep a federal tax calendar to stay on top of things in order to avoid paying extra penalties from the Internal Revenue Service (IRS).
Moreover, many new tax laws are going into effect in January and making keeping an eye on the different deadlines even more important than before.
So, when are taxes dues? The 2023 filing deadlines and extensions will be covered in the following paragraphs. Taxes are complicated and scary to some extent for many people. Albert Einstein, one of the most influential minds of all time, once said:
The hardest thing to understand in the world is the income tax.
While it is not particularly easy and fun for some, with the right approach, the process can go smoothly and be less hectic than it appears.
When Are Taxes Due?
Tax Day 2023 is right around the corner. The deadline to fill out your 2022 taxes is Tuesday, April 18, 2023. The date is the same for all the different states, including California.
Tax Day usually falls on April 15. This rule has been in place since 1955. The COVID-19 pandemic changed a few things in 2020 and 2021.
The IRS was more lenient with the filing deadlines during that period. However, 2022 marked some form of return to normalcy.
Moreover, in 2023, that day is a Saturday, and April 17 is the observation of Emancipation Day. That is why taxpayers have an April 18 deadline.
What does that mean in a concrete fashion? C corporations, individual taxpayers, and sole proprietors should file their taxes before that deadline.
There are a few exceptions, like if you are using a fiscal year. In that case, your situation would be different. Usually, your accountant and the IRS have an agreement on such a calendar.
For once, the IRS is encouraging taxpayers not to rush to complete their taxes. Early filers may miss some important documents that companies take time to send.
The Form 1099-K from online digital payment networks PayPal and Venmo is expected to arrive after the January 31 deadline.
The American Rescue Plan Act of 2021 changed the threshold of reporting for 1099-K from reporting from $20,000 to $600. This new measure has created a lot of controversies and may get repealed in the future.
However, for now, it is in place and should be included in your tax preparation.
When Are The 2023 Tax Extensions Due?
Can you file an extension for 2023? The answer to this question is a yes. This mostly happens if you need more time to file your taxes.
The deadline to submit the extension is April 18, 2023. You need Form 4868 to launch this process, which is more or less automatic. You will only hear back from the IRS on the matter if your request has an issue.
Doing this will give you six extra months to file your taxes. The extension is only for four months if you currently reside outside of the United States of America.
However, you still need to take care of the estimated income tax that you owe to avoid paying penalties. The extension deadline applies to businesses as well.
Partnerships and S corps can seek an extension on March 15, 2023. C corps have up to April 18, 2023, to put in their request. The deadline for filing an amended tax return is October 16, 2023.
When Are The 2023 Estimated Taxes Due?
If you are among those who pay estimated taxes, the schedule is also different. People in that category include independent contractors and those who are self-employed.
This means that money for income taxes is not removed from your paycheck before it gets to you. Form 1040-ES is needed for estimated taxes, and they are due quarterly.
For the first quarter, estimated taxes are due on April 18, 2023. The second-quarter payments are due on June 15, 2023. The two other quarters follow the same pattern, with payments due on September 15, 2023, and January 15, 2024.
When Will I Get My Tax Refund?
Usually, you can expect your refund 21 days after the IRS has received your filing. Of course, there are always little delays here and there.
However, the refund should reach you in less than four weeks. If the process is taking longer than expected, you can always use the Where’s My Refund tool for more information.
What Happens If You Pay Your Taxes Late?
There is a penalty for late payment. It corresponds to about 0.5% (extra every month) of the amount you owe the IRS. This can go up to 25% of the total until you pay the full amount.
The IRS also adds interest to unpaid taxes.
What is No Tax Weekend?
Certain states adopt what is known as “No Tax Weekend” or annual sales tax holidays. During such periods, sales tax is waived on certain items. Local authorities use this tactic in order to boost sales in specific areas.
For example, states like Alabama, Arkansas, Connecticut, Florida, Illinois, Iowa, Maryland, Tennessee, Missouri, Nevada, Massachusetts, and Mississippi have all pushed such a measure.
Taxpayers do appreciate this kind of approach to stimulate the economy. However, the dates are not known months in advance. Since most of those states have kept leadership from the same political party in place, it appears safe to say that “no tax weekend” will return in 2023 in some areas of the country.
What is The Fastest Way To File My Taxes?
In the past decade, the role of the internet in filing tax returns has grown exponentially. Filing your taxes electronically is both fast and convenient.
Moreover, it is the easiest way to be accurate. This explains why most Americans handle their taxes this way now.
It is also more secure than paper filing. People, who do their taxes electronically, also get their refund faster in the same fashion.
Tips to Prepare For The Tax-Filing Season
Here are a few quick ideas to better prepare yourself for tax season.
1) It is important to decide early who will be doing your taxes. Professionals get busier and become more expensive as the April 18 deadline approaches.
2) If you cannot afford the help of a professional, the coalition Free File Alliance can be a solution if you make under $57,000.
3) It is important to be careful around tax season to avoid scams and fraud. Make sure that the people you interact with regarding your taxes have the proper credentials.
Keeping track of your tax calendar and knowing when taxes are due are essential elements of the way you deal with your personal finances.
This means avoiding penalties and interest that can hinder your ability to save money properly. It is also something to factor into your retirement plans.