tax season 2022

All You Need to Know About Tax Day [2022]

Written by Ahad&Co

As tax season 2022 is back, we all need to prepare. But we have lots of questions in our minds concerning preparing for tax day. If so, you are in the right place.

In this guide, today, I am going to answer all those questions.

Let’s dive right in.

1. When is tax day?

This year tax filing deadline is Monday, April 18, because of Emancipation Day on Friday, April 15.

Tax season runs from January 1 to April 15 each year in the United States. The filing and payment of taxes for the previous year occur between those dates. Individual federal tax returns and fees are due on Tax Day, the last day of the year. The deadline for citizens to submit their state income taxes is the same in most states that impose income taxes.

2. What day of the week are tax refunds deposited?

The Internal Revenue Service (IRS) processes tax refunds twice a week. The IRS only processes refunds made by direct deposit on the first day, and on the second day, the IRS mails all refund checks to taxpayers who do not choose for direct deposit.

However, this does not imply that your refund will be handled right after filing your tax return. Whether you decide direct deposit or a paper check, it takes about six weeks from when the IRS receives your tax return for your refund to be processed. 

In addition, e-filing your return cuts the processing time in half. You should notice a deposit around three weeks after the IRS verifies receipt of your return.

3. When is the last day you can send in federal income tax forms?

Tax Day

Most people have until April 18 to file their federal income tax returns for 2021. Since the 2019 filing season, taxpayers have not been required to submit on the specific deadline of April 15.

The COVID-19 epidemic put out the April 15 deadline in 2020 and 2021. Because April 15 comes on a weekend in some non-pandemic years, the deadline is often pushed out to the next working day.

Because Emancipation Day is celebrated in Washington, D.C., on Friday, April 15, this year’s reporting deadline is Monday, April 18. For tax-filing reasons, the IRS is compelled by law to treat D.C. holidays as if they were national holidays. Emancipation Day marks the day in 1862 when President Abraham Lincoln signed a bill allowing enslaved individuals in Washington, D.C., to be freed. (To add to the confusion, Emancipation Day is really on April 16, but because it comes on a Saturday this year, the celebration is observed a day earlier.)

4. When is tax extension deadline in 2022?

You must seek an extension by April 18, and you will have until October 17, 2022, to file your return if you do so.

5. When are state taxes due in 2022?

Plan if You Might Owe Taxes

Taxpayers in Maine and Massachusetts don’t have to file until April 19 because April 18 is Patriot’s Day in those states. The festival commemorates the start of the first fight of the American Revolution in 1775. 

Some taxpayers who were affected by natural catastrophes in recent times are given more time to file in. The deadline for victims affected by the January Colorado wildfires to file their federal tax returns is May 16. In December, the same may be said for those affected by the tornadoes and flooding in Kentucky.

All the taxpayers in the remaining states have to file their taxes by April 18.

6. How can I file my 2022 taxes?

There appear to be as many alternatives for e-filing, also known as online filing, as there is paperwork to fill out when getting the job done. Your income, budget, the intricacy of your return, and possibly your tolerance for filling out paperwork will all influence which online filing option is best for you. Here are several solutions, such as IRS Free File and TurboTax, that should work for almost every type of taxpayer.

7. Do you file 2021 taxes in 2022?

Renew Your ITIN If Necessary

Yes, you file 2021 taxes in 2022

8. Will we continue to get the child tax credit in 2022?

As things stand, payments for the child tax credit will not be renewed this year. No payments may be made after December 31, 2021, according to the statute that authorized last year’s monthly payments. However, there’s still a chance that the amount due on December 15 won’t be the final. 

The Build Back Better Act, which was passed by the House of Representatives and is pending Senate action, would extend the monthly payments (along with additional child tax credit increases established for 2021) for another year if it can get through Congress.

9. How much do you have to make to file taxes in 2022?

Every taxpayer is entitled to a yearly standard deduction, which is a part of their tax-free income. You won’t owe tax if your 2021 income is less than the standard deduction for your filing status.

The standard deduction is taken before taxable income is computed, and if you don’t earn enough, it can wipe out your whole tax bill.

However, your income isn’t the only thing the IRS considers when determining whether you need to submit a tax return.

If your income was above the following minimum income limitations last year, you must file a tax return for the majority of taxpayers:

Filing status

Age at the end of 2020

Minimum gross income

Single

Under 65

$12,550

Single

65 or over

$14,250

Married joint filer

Both spouses under 65

$25,100

Married joint filer

One spouse under 65

$26,800

Married joint filer

Both spouses over 65

$28,500

Married separate filer

Any

$5

Head of household

Under 65

$18,800

Head of household

65 or over

$20,500

Qualifying widow(er)

Under 65

$25,100

Qualifying widow(er)

65 or over

$26,800

10. What Are The Income Requirements For Dependents?

Stay Updated on the News from the IRS

If you are reported as a dependent on another person’s tax return, you must meet a distinct set of income standards. Dependents with wages exceeding the minimums must file a 2021 return:

Single

Married

Age at end of 2020:

Under 65

65 or over

65 or over and blind

Under 65

65 or over

65 or over and blind

Unearned income above:

$1,100

$2,800

$4,500

$1,100

$2,450

$3,800

Earned income above:

$12,550

$14,250

$15,950

$12,550

$13,900

$15,250

Gross income above larger of:

$1,100 or earned income (max. $12,200) + $350

$2,800 or earned income (max. $12,200) + $2,050

$4,500 or earned income (max. $12,200) + $3,750

$1,100 or earned income (max. $12,200) + $350

$2,450 or earned income (max. $12,200) + $1,700

$3,800 or earned income (max. $12,200) + $3,050

11. What are the other situations in which you need to file taxes?

You must also file a tax return, according to the IRS, if you, for example:

  • You are self-employed and earned at least $400 in net profits in 2020.
  • Are there any additional taxes you owe?
  • You made at least $108.28 from a “qualifying church-controlled organization that is exempt from employer social security and Medicare taxes.”

Even if you don’t meet any of the above criteria, you must submit a tax return:

  • Are you a minor? 
  • Have you ever lived or worked in another country? 
  • Used to live in Puerto Rico
  • Had sources of income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, and the United States Virgin Islands

12. What happens if I don’t file taxes but don’t owe?

You must also file a tax return, according to the IRS, if you, for example:

  • You are self-employed and earned at least $400 in net profits in 2020.
  • Are there any additional taxes you owe?
  • You made at least $108.28 from a “qualifying church-controlled organization that is exempt from employer social security and Medicare taxes.”

Even if you don’t meet any of the above criteria, you must submit a tax return:

  • Are you a minor? 
  • Have you ever lived or worked in another country? 
  • Used to live in Puerto Rico
  • Had sources of income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, and the United States Virgin Islands

13. How much is the child tax credit 2022?

The form and amount of the child tax credit were changed after Congress enacted the American Rescue Plan in March 2021. Between July and December 2021, the Internal Revenue Service (IRS) was required by law to issue a monthly advance of the payment.

The credit was raised from a non-refundable $2,000 to a fully refundable $3,600 ($300 per month) for children under six and $3,000 ($250 per month) for children aged six to seventeen.

14. Can I track my child’s tax credit?

Through December, your scheduled monthly payments should have arrived in your bank account on the 15th of each month.

According to the IRS, you may view your processed monthly payment history via the IRS’s Child Tax Credit Credit Update Portal. It’ll be an excellent approach to keep track of any outstanding payments that haven’t yet cleared your bank account.

If you haven’t received your money yet, you may be required to file; check the Processed Payments area of the update site for details. Double-check your address and financial information if the money was delivered, especially if you’ve recently relocated or switched banks.

You’ll need to register with your IRS username and ID.me account credentials to check on your payments online. A photo ID is required for first-time users.

15. What happens if I file an incorrect tax return to the IRS?

It’s critical to address any mistakes you make on your tax return as quickly as possible. Depending on who discovers the error—you or the IRS—and how you manage it, various things might happen. Let’s take a look at three such cases.

16. You notice it right away.

Assume you immediately recognize the error. Your initial inclination might be to submit an entirely new tax return but don’t. If you need to make a change, fill out Form 1040-X, an updated tax return. A 1040-X can be used to provide the IRS with new or updated information, as well as to attach another form to your tax return.

17. What if The IRS Discovers Your Error

People, including the IRS, make mistakes all the time. If the IRS notices your error, they may issue you a notice to remedy it. Don’t worry if this occurs to you; complete the proper tax form by the deadline indicated on the form.

Please let us know about if you have any further questions or need further clarification. One of the best tax accountants in New York are here for you during this difficult time, reach out anytime via email or book a meeting, and we’ll be happy to get back to you.