Taxes are due today for Americans who received a filing extension
Tax extension deadline is on Oct. 17 for majority of late-filers
Rep. Darrell Issa, R-Ca., joined 'Kennedy' to discuss Democratic Sen. Joe Manchin saying the Inflation Reduction Act will not raise taxes on Americans earning less than $400,000.
Millions of Americans who requested a tax deadline extension earlier this year have just one more day to file their 2021 income returns without facing a financial penalty.
Typically, about one in ten Americans asks for an extension; however, this year, the ratio was closer to one in eight.
That's because of additional challenges for filers this year that are related to the COVID-19 stimulus payments and the expanded child tax credit. Although filers do not owe money on the stimulus payments, they still need to correctly enter the amount they received on their returns – which needs to match IRS records.
If you are one of the many Americans who has yet to submit their tax return, here's what you need to know.
INFLATION SURGED MORE THAN EXPECTED IN SEPTEMBER AS PRICES REMAIN PAINFULLY HIGH
The Internal Revenue Service (IRS) headquarters in Washington, D.C., U.S., on Friday, Feb. 25, 2022. (Photographer: Al Drago/Bloomberg via Getty Images / Getty Images)
When is the tax extension deadline?
The roughly 19 million taxpayers who asked for an extension earlier this year now face an Oct. 17 deadline to submit their returns.
Filing your taxes electronically is the fastest way to get a refund, according to the IRS, especially as the agency works its way through a backlog of paper returns.
What happens if I owe money to the IRS?
Although requesting a tax extension can give filers more time to review their return thoroughly and take advantage of all of the tax benefits that are available to them to help them reduce their liability, like various deductions and credits, it does not mean you can delay paying the government the taxes that you owe.
If you did not pay your full tax bill on April 18, when the funds were due, you will likely face a failure-to-pay penalty – an extra 5% per month on the unpaid amount owed, which can add up to 25% of the tax due.
Tax experts advise that you request a payment plan for the remaining balance If you are still unable to pay your bill on Oct. 17.
This file photo shows a portion of the 1040 U.S. Individual Income Tax Return form. ((AP Photo/Mark Lennihan, File) / AP Newsroom)
The IRS offers some payment plans to individuals who are unable to pay the full amount of taxes they owe.
What if the IRS owes me money?
If you're expecting to receive a refund this year, and you ask for an extension, you won't get that money until you've filed your return. The sooner you file, the sooner you get your refund. The IRS previously urged Americans who expect to receive money to file as soon as possible.
What is the best way to file my taxes?
Filing your taxes electronically is the fastest way to get a refund, according to the IRS, especially as the agency works its way through a backlog of paper returns.
Signage outside the Internal Revenue Service (IRS) headquarters in Washington, D.C., U.S., on Friday, March 19, 2021. (Samuel Corum/Bloomberg / Getty Images)
Are there any deadline exceptions for disaster victims?
There are some taxpayer exceptions to the October deadline.
The IRS announced last week that Hurricane Ian victims who live in Florida and have a valid extension to file their tax returns by Oct. 17 will now have until Feb. 15 to submit their returns.
That February deadline also applies to victims of storms and flooding that started on Sept. 15 in parts of Alaska, and Hurricane Fiona victims in Puerto Rico.