Yahoo Finance The U.S. income tax deadline is coming soon. Here’s what you need to know about filing, extensions, The Child Tax Credit, and more.
The U.S. income tax deadline is quickly approaching.
The IRS reports they have over $1 billion in unclaimed refunds every year with an average refund of $2,800. With the tax deadline right around the corner, here are five important things you need to know before filing.
When is the income tax deadline?
The federal income tax deadline is Monday, April 18, 2022, but the state income tax return deadline varies by state. Check with your state department of revenue for your location’s exact deadline.
How do I file my taxes?
There are many ways to file your taxes depending on your budget. Here are your options:
Use a tax software like TurboTax.
Hire a licensed tax preparer or certified public accountant through the National Association of Enrolled Agents or this online tool.
Use the IRS Free File to file for free if your income was below $73,000.
Be mindful that all tax preparers must have a preparer tax identification number.
After filing, you can check the status of your case with this tool.
If you made a mistake on your forms or want to make any changes or addition, file a Form 1040x.
What is the extension deadline?
In case you miss the April 18th deadline, you must file for an extension using the IRS 4846 Form which will give you until October 17th, 2022.
Note that if you owe money to the IRS, the deadline to make those payments is still April 18th. The extension is only granted to file your tax return.
What are estimated tax payment dates for 2022?
Estimated tax payments are for people who are self-employed. They are required to pay taxes in four installments throughout the year because they are estimating the amount they have yet to make for upcoming months.
Similar to Form 1040, the Form 1040-ES calculates your estimated tax by breaking it into 4 installments.
You can also use this free online tool to help you calculate your estimated tax payment.
The quarterly payment schedule for the estimated tax payments in 2022 is as follows:
Payment 1 is due on April 18, 2022.
Payment 2 is due on June 15, 2022.
Payment 3 is due on September 15, 2022.
Payment 4 is due on January 17, 2023.
Child Tax Credit portal
A tax credit reduces your final tax bill dollar-for-dollar. Common tax credits include the child tax credit, dependent care credit, and the retirement savers’ tax credit.
The Child Tax Credit (CTC) is granted to taxpayers with dependent children. You can use this Child Tax Credit portal to check your eligibility for the CTC.
For the 2021 tax year, the Child Tax Credit offers up to $3,000 per child who is 17 or younger and up to $3,600 per child who is under 6, according to the IRS.
This story was originally featured on Fortune.com
