Everybody who works is legally required to contribute their fair share of taxes to the government. Although it is surely a pain and not particularly enjoyable, it is an important way to fund public services which society depends upon. Also, failure to pay your taxes on time can result in penalties which can quickly add up if you are not careful. Therefore, when it is tax season make sure to file and pay your taxes as soon as possible.
When is tax season?
Traditionally, it is understood tax season begins each year on January 1 and ends on April 15. This is the time period most individual taxpayers should have all of the information they need to begin filling out their tax forms and file them with the Internal Revenue Service (IRS) before incurring late penalties. For 2021 tax returns, the IRS started accepting and processing returns on January 24, 2022.
Variance in tax deadline date
Although generally the deadline to file your taxes is usually April 15, if that day happens to fall on a weekend or a holiday the deadline date will be moved forward to the next business day. For example, Emancipation Day in Washington D.C. falls on April 16 in 2022, which is a Saturday. Therefore, the holiday will be observed on the nearest weekday which is April 15.
As a result, taxpayers will have until April 18, 2022 to file tax returns with the IRS. Also, taxpayers from the states of Maine and Massachusetts will have until April 19, 2022 since April 18 is Patriots’ Day in those two states. Tax returns not filed by the applicable deadline will result in penalties.
It is the responsibility of employers to provide their workers with the necessary information workers will need to complete their tax returns. This will include contract workers as well as employees. Businesses also have to provide this information to royalty earners as well. Also, businesses should provide this information to workers as soon as possible since it can take as long as three months for tax preparers to complete a tax return due to the large influx of customers during tax season. If you have not received this information from your employer, be sure to contact your employer right away.
On the other hand, you can also choose to calculate your own tax return which can allow you to file timely even if your employer does not provide you with the necessary information as promptly as you would like.
Comprehensive tax planning
Not only is filing your taxes in a timely manner important to avoid late penalties, but you should also try to do what you can to reduce your tax liabilities. There are many deductions and financial strategies you can utilize to do this which may not be commonly known. Having the help of a knowledgeable financial professional can empower you to come up with a comprehensive tax plan which can save you money when tax season comes around each year.