As you prepare your tax documents for 2021, make sure you’re aware of some important upcoming deadlines.
For 2020, Americans received a larger refund than compared to previous year.
There are many factors that impact the size of your refund during tax season.
This includes when you file, federal debt you may have, or which credits you choose to claim.
When to start filing your tax return
In 2021, people could not file their 2020 taxes until mid-Feb.
The IRS needed to update their systems in order to handle new tax laws and $600 stimulus checks.
This year, the issues should be far less.
2022 tax deadline
Normally the tax deadline is April 15, but this year Emancipation Day will be celebrated that day.
Offices throughout Washington D.C. are closed for the holiday.
When everything reopens, Tax Day will be April 18, 2022.
This day is also the deadline for filing for an extension.
What happens if you miss the tax deadline?
Missing the deadline for filing taxes will result in financial penalties.
This is called the Failure to File Penalty, and is sent by mail.
The penalty starts at 5% of unpaid taxes and can reach 25%.
After 60 days the fine is $435 or 100% of your owed taxes, whichever is less.
Interest is added onto penalties.
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