It’s Tax Day! Here’s What You Need To Know Before The Final Deadline

It’s Tax Day! Here’s What You Need To Know Before The Final Deadline

Today is every accountant’s favorite holiday – tax day. Apr. 18 is the final deadline to file your 2022 federal and state income tax returns.

Experts told CNN that filing taxes is a lot less traumatizing than it has been in the past. The COVID-19 pandemic put a damper on things. “This is the first tax season since 2019 where the IRS and the nation were on normal footing,” IRS Commissioner, Danny Werfel, said. Thanks to new funding after budget cuts, employees of the IRS have been able to answer 87% of calls from filers – a major increase from 15% in 2022.

Now, with access to online tax portals, tax day is easier to cope with. USA Today reported that the IRS has processed over 101 million returns, with an average refund down to $2,878 from $3,175 last year.

For taxpayers who haven’t filed yet, there are a few things to know. For those that live or have a business in a disaster area, declared federally, the IRS may have already issued an extension on the deadline. Tax filers in states like California, who have experienced extreme weather, have already been gifted an extension until Oct. 16. California natives make up close to 15% of all federal filers.

If you made less than $12,950 for single filers and $25,900 for couples, according to CNN, you may not have to even file at all. However, if filers feel they are eligible for a refund, they may want to take a chance. Using the IRS Free File system, there may be no cost associated to submit a return. For those in the armed services who have been recently stationed in a combat zone, an extension has been granted for 180 days, but there is a catch. The specific extended filing and payment deadline all depends on  the day filers leave, or have left, the combat zone.

So what happens if you don’t file by the deadline? Non-filers can receive a “failure to file” penalty, which is 5% of unpaid taxes for each month you don’t pay, not exceeding 25%.