Filing Your Taxes This Week? Here’s What You Need To Know
If you’ve put off filing your 2021 income tax return until the last minute, chances are you live somewhere out West. If you got your returns in early, you most likely live in the Midwest. No matter where you live, you only have about a week left to file your 2022 returns, and there are some things you need to remember before getting down to business.
A survey of Google data conducted by IPX1031 found that four of the top five states in terms of tax-return procrastination are located in the western United States: Nevada, Hawaii, Alaska and California. Meanwhile, four of the top five in not procrastinating are in the middle of the country: Iowa, Wisconsin, Michigan and South Dakota.
For those who still need to file, the one thing you want to make sure of above all else is to file your taxes on time. That should be a little easier this year because the federal income tax filing deadline for most Americans is Monday, April 18 instead of the traditional date of April 15. For this you can thank the Emancipation Day holiday in Washington, D.C., which pushed the date back in 2022, CNBC reported.
Taxpayers in Maine and Massachusetts get even more time to file — until April 19 — because of the Patriots’ Day holiday in those states.
Most state income tax returns are due on April 18. However, some states — including Delaware, Iowa, Louisiana, Maine, Massachusetts and Virginia — have different deadlines, so if you live in one of those states check with the appropriate tax authority to learn the exact date.
Another thing to keep in mind this tax season is that your return might be impacted by COVID-19 tax breaks, including the recovery rebate credit and advance child tax credit. Taxpayers who qualified for but didn’t receive economic impact payments issued in 2021 might be eligible to claim the recovery rebate credit, according to CNBC. You should have gotten a letter from the IRS showing the amount you were due, and you can use that to fill out your return.
You should also have gotten an IRS letter showing the amount of your advance child tax credit payment. If either of these letters contains an error in the credit amount, contact the IRS before filing your return.
Many Americans might also have earned income from multiple sources in 2021 due to a rise in side hustles as well as the impact of the Great Resignation. If this is the case, make sure you keep track of all income sources and include them on your 2022 tax returns. This might mean you have a few different W-2 or 1099-MISC or 1099-NEC forms that reflect your wages for the year, so be sure to include all of them.
Finally, keep an eye on the boxes on the front of your return that ask about digital currency. You must check “Yes” or “No” to the question that asks whether you received, sold, exchanged or disposed of any financial interest in any crypto or similar currency in 2021.
More From GOBankingRates