If you can’t get your taxes filed on April 15, 2022, don’t worry! You get a few extra days this year, and you can always file for an extension.
Normally, Tax Day is April 15th, However, Washington D.C. celebrates a legal holiday called Emancipation Day on April 15th this year, so tax due day is now Monday April 18th for 2022.
So, get going!
Last, Last, Last Minute Tax Savings?
You are searching for a last-minute tax savings strategy? Who isn’t?
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Unfortunately, there aren’t really many options now. The one big exception is contributing to your IRA, assuming your IRA is deductible based upon your income and retirement plan availability. If you have an online account linked to a checking account, that is the easiest way to make your contribution happen. Just log in and setup a deposit into your IRA account. Your brokerage will ask if you want it to count as a 2021 contribution, or a 2022 IRA contribution.
Don’t forget to go back into TurboTax, TaxCut, or whatever the HR Block tax software is (I’m not going to bother looking it up ) and input the contribution. IRA contribution deductions are not automatic, so you have to put it into your tax forms.
If you are worrying about some sort of tax form or “proof” that you made the IRA contribution, don’t worry. Those forms are called Form 5498. Those tax forms are sent by your IRA custodian (the company that holds your IRA account) directly to the IRS. You will also get a copy, but you don’t have to do anything with it. These forms are not due to be sent out until May 31, partly to accommodate these last-minute IRA contributions.
In other words, you make the contribution, and put it on your tax form, and don’t worry about the proof. Your IRA company will take care of that for you. (Don’t try and fake the contribution though, because if the IRS doesn’t get a matching amount to what you put on your tax return on all your Form 5498s, a computer is going to flag that for review, and then, “Hello, audit.”)
Get your taxes, or payment in a mailbox by midnight tonight. Be sure to check the Post Office website to see which, if any, post offices will be making after hours postmarks on mailed returns. Not all of them do. Don’t be a late filer based on a wrong guess about which Post Office you use to mail your return or payment.
IRS Filing Extension
If you can’t file your taxes by April 18, then it’s still no big deal, especially if you know you won’t owe money to the IRS this year.
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You can get a free, automatic, no questions asked extension for six months from the IRS just by filling out Form 4868.
There is a catch. If you OWE money, the money is still due on April 18th even if your tax forms aren’t due until October 15th. Any amount not paid by April 18th is subject to interest. So, if you know you are getting a refund, just send in your extension form and don’t worry about it.
If you are NOT getting a refund, then make your best guess and send the IRS a check. If you overpay, you’ll get a refund when you file your final tax return. If you underpay, you’ll still owe interest, but only on the amount you didn’t pay. For example, if you end up on your final income tax return 1040 owing $1,482 but you only sent the IRS $1,300 on April 18th, then you only owe interest on the $182 you didn’t pay, which will be a smaller amount than interest on the whole thing.
Good luck, and may the deductions be ever in your favor.
About the Author
By Brian Nelson – Brian is a former Certified Financial Planner and financial advisor. He writes for the Finance Gourmet and other financial publications. The material provided on this website is for informational use only and is not intended for financial or tax advice. ArcticLlama, LLC, FinanceGourmet.com, and Brian Nelson, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please note that material may not be updated regularly and that some of the information may not be current. Consult with your own tax professional when making decisions regarding your tax situation.