Category: Tax Deadlines

Tax deadlines are easy to forget. However, missing one could cause to pay up to the IRS for unnecessary penalty fees. Our tax team will keep you informed on the dates that you should mark on your calendar. With our help, you’ll never miss a deadline date again!

If you have questions about specific tax deadlines, then leave us a comment! Our team will give you the answers you need.

Archive for the ‘Tax Deadlines’ Category

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IRS Announces Tax Relief for Hawaii Wildfire Victims

Posted by admin on August 31, 2023
Last modified: August 31, 2023

The Internal Revenue Service (IRS) has issued a declaration of tax relief to those affected by the wildfires that began on August 8, 2023, in parts of Hawaii. Individuals and businesses affected have until February 15, 2024, to file returns and make required payments. Consideration is given to victims of the wildfire destruction in these areas of Hawaii.

In response to the damage caused by the Hawaii wildfire, FEMA has declared a disaster in Maui and Hawaii counties. As a result of this declaration, those who live or operate businesses in the affected areas are eligible for federal tax relief.

In response to a declared disaster, it has been made possible for those affected to postpone their filing and tax payment deadlines. An example is when deadlines falling between August 8, 2023, and February 15, 2024, can be extended with special permission from the IRS.

The Internal Revenue Service (IRS) has issued a grace period extending to February 15, 2024, for all affected individuals and businesses who need more time to file tax returns between January 1, 2021 and April 18, 2023. This stipulation includes 2022 individual income tax returns, with an original due date of October.

Hawaii Wildfire

The February 15, 2024, deadline also applies to:

  • Quarterly estimated tax payments, which are normally due on September 15, 2023, and January 16, 2024.
  • Excise tax returns and quarterly payroll which are normally due on October 31, 2023, and January 31, 2024.

Businesses whose 2022 tax extension dates have elapsed or will soon elapse by September 15 (i.e., calendar-year partnerships and S corporations) and October 16 (calendar-year corporations) are eligible for the February 15, 2024 deadline for filing taxes.

On or after August 8, 2023, and before September 7, 2023, any late payroll or excise tax payments will receive abatement as long as the deposit is made by the said date.

When a taxpayer is subject to a late tax filing or late payment penalty notice from the IRS that had an original or extended due date during the postponement period, they should contact the number on the notification for the IRS to waive any charges.

Taxpayers affected by a covered disaster area can receive filing and payment relief from the IRS, provided they reside or have business in those areas. Those located outside of such regions should contact a dedicated PriorTax Tax Professional to benefit from this tax relief.

Who are Affected Taxpayers from Hawaii Wildfire?

Individuals and businesses affected by the covered disaster area, including tax-exempt organizations, are eligible for postponement of time to file tax returns, pay taxes, and perform other time-sensitive acts. This also extends to those who do not physically reside within the area but whose records necessary to meet a deadline lie within it. Thus, they, too, are entitled to some form of relief.

All those providing and receiving help during times of tragedy have the right to compensation for any damages incurred as a result of the disaster. That is why anyone affiliated with an official government or charitable organization assisting people affected by a disaster area is eligible for relief.

Taxpayers affected by the August 8, 2023 date will receive some relief from the Internal Revenue Service (IRS), as they can now file all relevant tax documents until February 15, 2024. This includes individual and corporate income tax returns, partnership and S Corporation returns, estate/gift/generation-skipping transfer taxes, annual information for tax-exempt organizations, and employment/excise taxes with either an original or extended due date up through February 15 of this year.

Taxpayers with estimated tax payments due between August 8, 2023, and February 15, 2024, now have an extension until February 15, 2024, to make those payments without facing any penalties for late payment. Those estimates must be paid before the end of that period to avoid penalty charges.

Declaring Casualty Losses from Hawaii Wildfire

For individuals impacted by a federally declared disaster, the option to declare casualty losses on their federal tax return for either the year of the occurrence or the previous year is available. Taxpayers who have selected this option and are reporting these losses on their 2022 returns have extended time until October 15, 2024, to make that choice.

Hawaii Wildfires have caused some taxpayers to seek out the disaster loss on their tax return. Make sure to state “Hawaii Wildfire” and the FEMA disaster declaration number, DR-4724-HI, at the top of your form. A PriorTax Tax Professional can assist individuals through this process from start to finish.

Other Possible Tax Reliefs

Taxpayers affected by disasters may find financial aid within their retirement plans or IRAs. For example, they could qualify for a special disaster distribution to spread the income over three years and avoid the extra 10% early distribution tax.

Those who pay taxes could qualify for a hardship withdrawal in certain instances. Every plan or IRA has separate rules and guidelines that must be adhered to by its participants.

The IRS may provide additional disaster relief in the future.

Taxpayers dealing with the repercussions of a disaster that the IRS has contacted in regard to a collection or examination should make their situation clear to the agency so that they can be given appropriate consideration.

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Category: Tax and Life Changes, Tax Deadlines, Tax Deductions and Credits, Tax for Business, Tax News
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Energy Tax Credit in 2023

Posted by admin on July 13, 2023
Last modified: July 13, 2023

Does Your Home Improvement Expense Qualify For Energy Tax Credit?

Homeowners can now take advantage of extended energy tax credit for home improvements promoting efficiency and renewable power. The tax credits, available through 2034, are even being expanded starting in 2023.

What purpose do Energy Tax Credits serve for home improvements?

In an effort to make homes more energy efficient, the government has extended two tax credits available for home improvements and residential clean energy equipment. The Inflation Reduction Act of August 2022 has increased the timeline and financial benefits associated with these tax incentives.

Energy Efficient Home Improvement Tax Credit

The Inflation Reduction Act recently extended and expanded the Tax Credit for Home Improvements that are Designed to be More Efficient with regard to how they consume power. Previously this credit had a lifetime limit of $500 and was known as the Nonbusiness Property Credit, but it has now been renamed. It will remain in effect until December 31, 2022.

Starting January 1, 2023, and up until January 1, 2033, households may be eligible to receive a tax credit of up to $1,200 annually under a new law – known as “Energy Efficient Home Improvement Credit” – which amended an existing one.

energy tax credit

The new tax credit has a major advantage over its predecessor; it provides an annual limit rather than a lifetime one. In other words, by spacing out qualifying home improvements over a decade, you can claim up to $12,000 in returns on your taxes instead of just the $500 allowed before.

Making smart investments in heat pumps, biomass stoves, and boilers may be rewarded up to an extra $2,000 each year. This presents a great opportunity for individuals to take advantage of the financial incentive for greener living.

What are Energy Efficient Home Improvement qualifying home improvement for getting Energy Tax Credit?

Do certain home improvements qualify for the Energy Efficient Home Improvement energy tax credit? Starting from January 1, 2023, this tax credit can be equal to either 30% of the amount spent on eligible projects or up to an annual maximum of $1,200.

When it comes to energy-efficient home improvement credit, a current maximum of $3,200 applies annually. This includes an applicable credit limit of $1,200 and a separate aggregate yearly credit limit of $2,000 for electric or natural gas heat pump, water heaters, electric or natural gas heat pumps, and biomass stoves and boilers.

Residential Clean Energy Tax Credit

Taxpayers can take advantage of a substantial financial benefit with the Residential Clean Energy (RCE) Credit, which was extended and increased by Congress through its passage of the 2022 Inflation Reduction Act. This credit is equivalent to 30% off eligible costs for residential renewable energy amenities.

Through 2034, Congress passed an amendment to existing energy credit legislation: named Inflation Reduction Act. This bill altered applicable percentage rates as well as included battery storage technology in eligible expenses.

A tax credit is available for property brought into service between 2021 and 2033. This incentive gradually phases out over time – 26% in 2033, 22% in 2034, and 0% after December 31 of that year.

Residential Clean Energy Credit Qualifying Equipment?

The Residential Clean Energy Tax Credit is for users of solar, wind, geothermal, and fuel cell. This includes the installation of photovoltaics for the production of electricity, as well as adding a solar-powered water heater to one’s residence. To be eligible for the credit, a solar system must cover at least half of the home’s water-heating needs – hot tubs and swimming pools do not qualify.

For residential use, various technologies are available to produce electricity. These include up to 100-kilowatt turbines driven by the power of the winds. These geothermal heat pumps adhere to Energy Star standards set by the federal government, fuel cells utilizing a renewable resource such as hydrogen for a minimum of 0.5 kilowatts output, and battery storage systems.

Does the Residential Clean Energy Tax Credit Cover Roofing Expenditures?

When making improvements to one’s roof in order to mount solar panels and related hardware, it is important to note that these expenditures are typically not eligible for the Residential Clean Energy Credit. This is because they primarily serve as a means of upkeep or structural stability.

When it comes to tax savings, investing in solar roofing can be a great option. Solar roofing tiles and shingles are an excellent choice as they offer both protection for your home and the opportunity to generate solar electric energy. These investments may qualify you for a federal tax credit.

How Does Energy Tax Credits Work?

The federal government offers tax credits to citizens who invest in products and services that are designed to be more efficient with regard to the use of natural resources. These credits can be used to help reduce the cost of improvements such as new insulation or window replacements. Additionally, solar panel systems and other renewable power sources may also qualify for tax credits, making them more accessible to homeowners. This program is a great way for people to save money while doing their part in protecting our environment.

Are Energy Tax Credits Refundable?

Tax credits for the use of renewable energies are not refundable. This implies you could diminish your total tax to nothing, assuming you have a sufficiently large credit amount. However, receiving any additional credit as payment on your return is impossible when the sum surpasses the total charges due. Any unused renewable-based credits stated on your return can be transferred forward and counterbalance tax debt in upcoming years.

Will these energy efficiency tax credits make home improvements more cost-effective?

When it comes to home improvements, energy efficiency is certainly something that should be taken into consideration. These upgrades can help reduce those pesky heating and cooling bills, and they also come with potential tax credits that further enable homeowners to save money on their purchases. Therefore, when used in conjunction with cost-saving home improvements, these credits can be a great tool for lowering the overall cost of living.

In Conclusion

Those wishing to improve their homes in an energy-efficient manner may be eligible for a tax credit through Energy Efficient Home Improvement Credit.

Homeowners have a great opportunity to save money at tax time with Residential Clean Energy Credits. These credits can be applied toward specific pieces of equipment, such as solar panels, wind turbines, geothermal systems, and fuel cells.

The solar, wind and geothermal equipment installed in both your principal residence and any other home used as a residence can be claimed for the credit. However, fuel-cell equipment is eligible to acquire this credit exclusively when placed in the main house.

PriorTax offers an easy solution to get your taxes done right; our free dedicated Tax Professionals are here to help from start to finish. We guarantee our services will provide you with the highest return possible as we take the time to search for any and all available tax deductions and tax credits that you qualify for.

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Category: Tax Deadlines, Tax Deductions and Credits, Tax Year 2022, Taxes for Prior Years
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W2 Tax Form for 2022

Posted by admin on January 20, 2023
Last modified: February 13, 2023

It’s almost time for 2023 tax season to begin, and with it comes an important date – Jan. 23, 2023 – which marks when taxpayers can start filing their 2022 taxes. Those who work full-time can begin this process once they receive their W2 Form for 2022 from their employer. This document is critical as it provides the information needed to submit your taxes correctly and calculate any potential tax refund.

What is W2 Form for 2022?

Are you familiar with Form W2 Form for 2022? This official tax document, also known as the Wage and Tax Statement, is provided to employees at their employer’s conclusion of each tax year. The information it contains is incredibly valuable, displaying your annual wages and any taxes paid on those earnings.

It is important to note that the W2 Form for 2022 contains various components you should pay attention to. From Social Security and Medicare taxes to compensation data required for certain credits or deductions – all are included on the form. In addition, the lower section of the document outlines state-specific income and tax information.

At tax time this year, when utilizing our dedicated tax professionals, you’ll need to reference several of the boxes in the W2 Form for 2022 when completing and submitting a 2022 income tax return.

w2 form 2022

What information can I find on my W2 Form for 2022?

The W2 Form for 2022 document contains all the necessary information to file taxes for American taxpayers. To give an overview, here is a breakdown of each box and the data found about you and your employer.

Boxes A-F: The boxes located in the top left corner of the W-2 are designated with letters from A to F and hold pertinent information that is used to accurately identify both yourself and your employer; this includes legal name, address, Social Security Number, tax identification number as well as a control number which is exclusively used by your employer’s system to single out your W2 Tax Form for 2022.

In Boxes 1 and 2, you’ll find the necessary information most taxpayers need for 2022 – total wages, tips, other compensation, and federal income tax that was withheld. Then, moving on to Boxes 3 through 6, you can see what part of your income has been subject to Social Security and Medicare taxes, along with any taxes paid for both in 2022.

In Boxes 7 and 8, the amount of tip income reported by both you and your employer will be reflected. Meanwhile, Box 9 may appear grayed out but it is nothing to worry about; this was used in the past for reporting advance payments for Earned Income Credit which ended in 2010 yet remains on tax forms.

Boxes 10 and 11 provide insight into any dependent care benefits or deferred compensation you may have received in 2022.

Box 12 includes a variety of additional income or reductions to taxable income, marked by a code with either one or two letters. For these items to be included when filing your taxes, you must consist of certain codes from the 28 available options.

Located in the 13th slot is the section to show income that doesn’t require federal tax payment. For example, it includes contributions made to a sponsored retirement plan such as 401k account, third-party absence pay such as private insurance, or money earned as a statutory employee. The 14th field is an additional space for employers to include other applicable taxes information, such as tuition help or union dues.

A critical part of your W2 Form for 2022  can be found in Boxes 15 through 20. This section provides information about your income and withholdings relevant to state taxes and the ID number that belongs to your employer.

Usually how long does it take to get my W2 Tax Form for 2022?

As mandated by legal requirements, you must receive your Form W2 by Jan. 31, 2023 at the latest. This is usually done via postal mail; however, certain companies offer employees W-2 forms through online portals. It may also come from an external payroll service like ADP or Gusto, so be aware of that as well.

Jan. 31 has come and gone, but you still need to receive your W2 Form for 2022. 

Don’t worry yet – you can do a few things in this situation. First, check around for any emails your employer might have sent with instructions for accessing the electronic version of the form. IRS Publication 15A does allow employers to provide electronic versions, so it’s worth double-checking your spam or junk mail folders in case something got filtered out by mistake.

To obtain your W2 Form for 2022, begin by reaching out to the human resources or payroll department. Ask them whether they sent it and, if it didn’t arrive, request that they send another one.

Should the employer fail to assist, you may contact the IRS directly for more information about your W2 Form for 2022.

When the April. 15 (or the 18 for 2023) deadline has passed, and you still need to receive your W2 Form; there are a few steps to take. 

As April 18 approaches – the day taxes are due this year – and you still need to receive or access your W-2 form, there are a few choices for filing your 2022 tax return.

One solution is to fill out Form 4852 as an alternative so that you can guess your income and withholding tax. But be mindful that any discrepancies between the information on your return and your W2 Form will necessitate an amended return submission.

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Category: Tax and Life Changes, Tax Deadlines, Tax Tips and Tricks, Tax Year 2022
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When to Expect Your Tax Refund in 2023

Posted by admin on January 18, 2023
Last modified: February 13, 2023

When will you get your 2023 tax refund? Here’s our annual chart with our best estimates. Keep in mind that the answer is never exact, but we can make some educated guesses based on a few factors.

Now is also an excellent time to begin applying your year-end tax filing strategies that can lower your tax bill with tax credits or increase your refund with tax deductions. So whether you’re planning for next year or want to lower your bill this year, these strategies can help you out.

Have you had any significant changes in your life this year, like a new job, getting married or divorced, having a baby, retiring, buying a house, or changing investments? These types of things can have a significant impact on your taxes. So it’s a good idea to reach out to PriorTax Tax Professional sooner rather than later. Our dedicated tax professionals can make sure you are taking full advantage of all the tax deductions and tax credits you’re entitled to for maximum tax refund.

Are you wondering whether the 2023 tax filing season is going to be normal? While it’s impossible to say for certain, it’s likely to be closer to normal than it has been since 2019. That was the last tax filing season before COVID-19 caused widespread office closures, even at the IRS. As a result, the 2020 tax filing deadline was delayed by several months.

Don’t worry, the vast majority of taxpayers won’t have any issues come tax season. Just to be clear, the weeks leading up to April 18 2023 is when Americans file their taxes for the income they received during the 2022 calendar year. Alternatively, you can file for an extension, giving you an extra six months to sort everything out.

2023 tax refund

April 18, 2023 is the Tax Deadline!

What is the reason for the 2023 tax deadline being on April 18 instead of the 15th? The standard deadline of April 15 falls on a Saturday, so when this happens, the tax filing deadline to the next business day. However, in 2023 this Monday happens to be Emancipation Day.

The tax filing deadline to file your federal income tax return (Form 1040) is Tuesday, a state holiday Patriot’s Day in Maine and Massachusetts. Most states usually follow the same calendar for state income tax returns. Depending on when you file your taxes, you may receive your tax refund payment within 2-3 weeks.

When to File Your Tax Returns and Expect your 2023 Tax Refund?

It’s that time of year again the tax filing season is around the corner. It is time to think about maximizing your tax refund!

For most people, tax season starts in late January or early February. However, this year may be different due to recent changes in tax law. So it’s important to stay up-to-date on any new developments.

Generally speaking, early filers who are due a refund can expect to see their money sometime in mid-to late February. However, those who claim certain credits like Earned Income Tax Credit or Child Tax Credit may have to wait a bit longer for their refunds – about one month.

Last year was impacted significantly by Covid-19, which caused both deadlines and procedures to change.

According to our projections, this is when you can expect to receive your income tax refund based on when you file your return. Keep in mind that this timeline is an estimate and may change depending on future events.

You can check on the tax filing status of your tax refund using the “Where’s My Refund” tracker from the IRS website or with your assigned PriorTax Tax Professionals. Just enter some basic information about yourself, and we’ll update you on where things stand.

It’s always a good idea to get your tax return in as soon as possible – and Efiling is the quickest, easiest way to do it. In general, you can expect to receive your refund via direct deposit within 2 weeks – although, during the busiest times of tax season (late March), it may take a bit longer. So gather up all your documents such as W2s, 1099s, mortgage, and student loan interest statements, etc.

There are a few important factors that can affect when you might get your 2023 tax refund, these include:

  • How early you file
  • Whether you’re claiming certain credits (especially EITC and CTC)
  • Whether your return is e-filed or sent by mail
  • Whether you have existing debts to the federal government

The IRS will delay processing by 2-3 weeks for income tax returns that claim the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC), so they can verify that taxpayers qualify for the credits.

Keep in mind that this is just an estimate of when you can expect your refund – it’s not exact, since every taxpayer has different returns and situations. Also note that the first column is when the IRS accepts your return, which can be 2-3 days after you submit it electronically. Mailing in a tax return can result in extra delay at the beginning of the process since the IRS will need to manually enter it into their system. But don’t worry – we’ll keep this page updated in case the IRS changes tax season this year.

tax refund in 2023

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Category: Tax Deadlines, Tax Deductions and Credits, Tax for Business, Tax News, Tax Tips and Tricks, Tax Year 2022
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2023 Tax Brackets and Tax Code

Posted by admin on December 9, 2022
Last modified: February 13, 2023

The 2023 tax year will see some changes to the limits and thresholds on some well-known tax provisions as a result of inflation adjustments announced by the IRS. These include increases to the income thresholds for the 2023 tax brackets, which could mean that many people may pay less in taxes in 2024.

As we head into another tax season, it’s important to be aware of the major changes made to the 2023 tax brackets and tax code. One of the most significant changes is how inflation is considered when determining your tax bracket. This change is known as “bracket creep,” and it can have a major impact on your taxes. In order to prevent bracket creep, the government makes annual adjustments to the tax code. This year, those adjustments will impact taxpayers’ incomes in 2023. Knowing about the changes now can help you plan ahead and ensure you’re prepared come tax time.

2023 Tax Brackets and Tax Rates

There are seven different tax brackets that the government imposes on citizens in the United States. The marginal rates for these brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These rates will not change in 2022. However, the income thresholds that dictate which bracket a person falls into will be significantly adjusted for 2023.

The new tax brackets for 2023 have been released, and there are some changes that taxpayers need to be aware of. For example, the maximum income for a married couple filing jointly to remain in the 12% bracket has increased from $83,550 in 2022 to $89,450 in 2023. Toggle between the tabs in the chart below to explore how income thresholds will change across all filing statuses in 2023.

2023 Standard Tax Deduction

The IRS offers a deduction for 2023 taxpayers who do not itemize their taxes. This is known as the “standard deduction.” For the 2023 tax year, the amount of the deduction will increase by $900 for single filers and those married filing separately, $1,800 for married couples, and $1,400 for heads of household. In addition, the additional deduction for those over 65 or blind (up from $1,400 in 2022) and $1,850 higher for those also unmarried and not a surviving spouse (up from $1,750 in 2022).

2023 tax brackets

2023 Capital Gains Tax

Different types of taxes are assessed on different types of income. For example, a person’s earnings from their job are taxed as wage income, while the profits generated from selling an asset, such as a stock or cryptocurrency, are taxed as a “capital gain.”

Short-term gains (capital gains on assets held for less than one year) will be taxed in 2023 at the same tax rate as your other ordinary income. However, long-term gains (capital gains on your assets held for more than one year) get special tax rates: 0%, 15%, or 20%.

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Category: Tax Deadlines, Tax Deductions and Credits, Tax for Business, Tax News, Tax Tips and Tricks
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eFile Taxes and Tax Extension

Posted by admin on November 25, 2022
Last modified: November 25, 2022

You can eFile federal and state income taxes return electronically using PriorTax. Taxpayers can eFile taxes either through an online tax preparer that is an approved electronic return originator (ERO) such as PriorTax with free support from our Tax Service Professionals.

eFile taxes with PriorTax for your return, and choosing to have the refund directly deposited in your bank account is the fastest and easiest way to receive a tax refund. eFiling taxes will get you your tax refund far quicker than traditional mail. eFiling taxes online also speeds up the time that it takes to receive your tax refund.

PriorTax is an authorized IRS e-Filing provider. PriorTax eFiling software will automatically verify that the returns are completed, correct errors, produce relevant schedules, and transfer your returns from your computer to IRS systems and if requested, to the local state tax systems. To help assure that your eFiled tax return is accurate, only proven, top-quality, PriorTax eFiling service will support all customers along with our free Tax Service Professionals to walk you through to eFile taxes.

efile taxes
efile taxes

You may select to have a PriorTax Tax Service Professional help eFile taxes your return for you electronically, or you may choose to do it yourself.

However, note that some states accept electronic filing of tax returns directly, while others send returns directly to the IRS, then those returns are forwarded to state tax agencies. In addition, some states will not let you file a state-only e-Filed return; they will ask that you e-File your state and federal taxes together.

You do not need to worry that data will end up in the wrong hands or misused, as the IRS, the state, and tax preparers all follow the same privacy rules for electronic returns that they do for paper returns. While you may gather all of the necessary documents for your tax return as you go through the e-Filing process, gathering that information sooner may save time later.

How Can I eFile Taxes with a Tax Extension?

Filing an extension for your taxes is easy with PriorTax. Just submit Form 4868, and we’ll take care of the rest. This will give you extra time to prepare for your return, no matter the reason.

An extension only gives you little bit more time to finish tax filing, but no extra time to pay your taxes. Your tax payments are due on the tax filing deadline, which typically falls on April 15 or if the deadline falls on a holiday or weekend, the next business day.

Not filing your taxes on time can result in some pretty hefty penalties. The IRS will charge you monthly interest on the unpaid balance until you pay the full tax amount you owe. Additionally, failing to pay at least 90% of what you owe can result in a late payment penalty, which is usually half of 1% of the amount owed each month, up to 25%. Finally, not filing your return or Form 4868 by the tax filing deadline comes with a late filing penalty of 5% of the amount you owe for each month, again up to a maximum of 25%. So while eFiling a tax extension may not be penalized, it’s still important to make sure you file and pay your taxes on time to avoid some costly fees.

It’s important to get your taxes filed on time, but sometimes life gets in the way. For example, maybe you’ve been busy with work or taking care of your family, and you just need to get a chance to get your taxes done. That’s okay! The IRS offers a six-month extension for individuals who need a little extra time.

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Category: Tax Deadlines, Tax Tips and Tricks, Taxes for Prior Years
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When Are Taxes Due for 2022 Tax Return

Posted by admin on November 14, 2022
Last modified: November 14, 2022

Do you want to know the date for when are taxes due in 2022?

Well, we have the answer for you! According to the IRS, taxes are due on Tuesday, April 18, 2023. So be sure to mark that date in your calendar!

As the end of the every fiscal year approaches, many Americans begin to feel the pressure of taxes. For some, April 15 is a day of dread as they scramble to pull together all the necessary paperwork and documentation. Others look forward to receiving their refund check from the government.

No matter which camp you fall into, it is important to be aware of the latest changes to the taxation system. This year, for example, due to Emancipation Day being recognized as a holiday in Washington, D.C., taxes will be due on Tuesday, April 17.

The IRS typically starts accepting returns in late January, giving taxpayers nearly three months to get their affairs in order. However, victims of federally declared disasters may have an extended filing deadline.

It’s important to be aware of the various tax deadlines that apply to you, such as the federal deadline, your individual state deadline, and the late filing deadline. Here, we’ve listed the major ones for the tax year 2022 (taxes filed in 2023).

When is the federal tax filing deadline and taxes due for 2022 Tax Return?

The deadline for federal tax returns and payments is April 18, 2023.

What are some other important dates for 2023 filing taxes?

The IRS has set the following deadlines for the upcoming tax seasons:

  • January 2023 – IRS begins accepting returns
  • February 21, 2023 – Fourth quarter estimated payments due for the tax year 2022
  • February 1, 2023 – Employers must mail W-2 forms
  • April 18, 2023 – Tax Day/federal returns and payments due, final day for 401k contributions, the final day to file an extension

What is the 2023 tax filing deadline for my state?

The due date for filing and paying state taxes varies by state. You can check your state’s Department of Revenue for the most up-to-date information.

As an independent contractor, consultant, or self-employed individual, it’s important to be aware of the various deadlines for filing your taxes. For example, the last quarterly estimate deadline for work completed during Q4 of 2022 is February 18, 2023. However, if this is your first time reporting an estimate, you may have some additional questions. In that case, check out more information about quarterly estimate taxes here.

when are taxes due 2022
when are taxes due 2022

We know it takes a lot of work to manage your calendar. That’s why PriorTax reminds you when quarterly estimates are due. Get started today!

When is the deadline to file a federal tax return extension in 2023?  

The tax filing deadline to file a 2022 federal tax return extension is fast approaching! You must file a tax extension by April 18, 2023, to avoid penalties. Keep in mind that a 2023 tax extension only gives you more time to submit your tax return, not to pay your taxes. So make sure you have all your ducks in a row before the April 18 tax deadline!

Will the IRS extend the 2023 tax filing deadline for 2022 returns?

As we approach the end of the tax year, many people are wondering whether the IRS deadline for filing returns might be extended. Unfortunately, it’s not likely. The IRS typically only extends deadlines in the case of unexpected events, like natural disasters. The deadline is on track to be April 18, 2023.

When do I have to file an amended tax return for the 2022 tax year?

It’s important to know the deadline for filing an amended return, three years from the original due date. For example, the deadline for a return filed in 2023 would be April 18, 2026. After that, you would only need to file an amended tax return only if changes needed to be made, and you can’t amend a return until the IRS has accepted it.

How do I file online my 2023 taxes before the tax filing deadline?

Filing your taxes doesn’t have to be a chore. Let PriorTax take care of everything for you. We’ll tailor the filing process to your specific needs and make sure everything is done before the deadline. Plus, our support team is always here to help you out should you need it. So get started today and make tax season a breeze.

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Category: Tax Deadlines, Tax for Business, Tax News, Taxes for Prior Years
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Everything about Tax Form 1099-NEC

Posted by admin on August 2, 2022
Last modified: August 1, 2022

Since 2020, Form 1099-NEC is the new form businesses are required to file annually with the IRS to report non-employee compensation (NEC). If you made payments to individuals or companies for services that were not your employees, you might need to file this type of return. Compensation for non-employees was formerly filed in Box 10 on Form 1099-MISC. If you are still going to use this for other payments, make sure to put information in the correct boxes, as they are in different places now. The IRS started separating Form 1099-NEC income from Form 1099-MISC since 2020 for the tax payers in 2021. Contact our available Tax Service Experts today.

One of the most common reasons you will receive a Form 1099-NEC (form 1099-MISC for previous years) is if you were an independent business owner or performed independent contractor work in the prior year. In 1983, the IRS added an additional box to the existing Form 1099-MISC to allow businesses to report payments made to self-employed individuals who worked for them during the tax year.

This would have included any independent contractors, gig workers, or sole proprietors that had previously reported their payments on Box 7 on Form 1099-MISC for past years before 2020.

How Form 1099-MISC and Form 1099-NEC are Different?

Prior to 2020, Form 1099-MISC was used to report payments, including compensation, that were not made to an employee. Starting in the 2020 tax year, non-employee compensation is no longer reported on Form 1099-MISC. Employers must instead use Form 1099-NEC.

What is Non-Employee Compensation, and what to expect from Form 1099-NEC?

Non-employee compensation is defined as the money paid to an independent contractor for the work performed. Common examples include fees, commissions, prizes, and awards for services.

IRS Form 1099-NEC is used to report any compensation paid to a non-employee by a business. There are five sections on the 1099-NEC. For example, non-employee compensation would be reported in Box 1. Box 4 will report any Federal Income Tax collected. This box should be empty unless you have an alternative way to have the tax withheld. For example, box 5 would report any state income taxes withheld from compensation.

So I’m a business owner running a company. Do I need to file Form 1099-NEC for our staff?

All businesses are required to file Form 1099-NEC for compensation of someone other than a full-time employee when you follow the following conditions. You are paying someone who is not a full-time employee of yours, You are paying for services performed in trade or business (including public agencies and non-profit organizations), You are paying a person, a partnership, an inheritance, or, in some cases, a corporation, You paid at least $600 to an individual in the course of a tax year, and you are required to file Form 1099-NEC for everyone you have back-up tax-paying employees, even if the amount is under $600.

Form 1099-nec
Form 1099-nec

More About Tax Form 1099-NEC

IRS Form 1099-NEC is a tax form used to report compensation from non-employees for tax years 2020 and later. Prior to the 2020 tax year, the form used to report this type of income was 1099-MISC. Here’s what you need to know about the 1099-NEC, whether you are an independent contractor or employer.

If the taxpayer did not receive a required 1099 form on the income earned–even if the business did not file form 1099-NEC – the taxpayer can choose to report it as non-business income. If the form 1099-NEC is not received, taxpayers are still liable to pay taxes on any income earned throughout the tax year. Businesses are required to send out a form 1099-NEC to a taxpayer (other than a business) that received at least $600 or more in non-employment income during the tax year. The 1099-NEC form is used to report non-employment income, including dividends paid on stock holdings or income earned by an independent contractor.

Suppose you made any payments throughout the calendar year to either a small business or a self-employed individual (an individual). In that case, you are probably required to file a tax return with the IRS. If your business paid a person or LLC at least $600 in rental payments, court settlements, or prizes or awards over a year, you must file a 1099-MISC. If your business employs a contractor and pays him or her more than $600 during the year, you are responsible for filing the new Form 1099-NEC with the IRS and sending the contractor a copy.

You must also file Form 1099-NEC for anyone you have retained federal income taxes from under reserve tax rules for any amount, even if the amount is less than $600, for that amount. So, for example, if the business sent the IRS your Form 1099, but for whatever reason, you did not get it, the IRS sends you a letter (actually, a bill) saying that you owed taxes on your earnings.

The tax payor is responsible for filling out a form 1099 tax and sending it to the IRS and the contractor. If you work with a paycheck service like Gusto to pay your contractors, they will complete and send 1099 forms to each contractor. You will send a copy to your payee and one copy to the IRS on Form 1096. The forms are supposed to be sent to the recipient (to who you paid money) and to the IRS on or before Jan. 31.

That means that you will be sending your tax payments to the IRS four times per year, plus any applicable state and local revenue departments. In other words, if you paid anyone who was not an employee for a tax year at least $600, you must report it to the Internal Revenue Service (IRS) using Form 1099-NEC. In addition, you must file a 1099-NEC form with any non-employee for whom you paid $600 or more in a single tax year for services related to your business.

When making payments to a non-employee or other business, you should always ask the person you are paying to submit a W-9 form so that they will have the information needed to complete their tax forms. Independent contractors get 1099s while employees get W-2s. Businesses must report payments to independent contractors and self-employed individuals using the 1099-NEC form.

A taxpayer might receive a 1099 form if he or she received dividends, which are cash payments paid to investors for holding stock in a corporation.

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Category: Tax Deadlines, Tax Deductions and Credits, Tax Tips and Tricks, Taxes for Prior Years
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Free Tax Filing 2021

Posted by admin on February 24, 2022
Last modified: February 24, 2022

Ultimate Guide to Free Online Tax Filing and Free Federal Tax Filing

As things start to wind down for the year and 2021 comes to a close, it’s not too early to take a step back and make sure you have everything in order for the 2021 tax year. Setting aside just a few moments before year’s end to review your finances can pay dividends, metaphorically speaking, when the applications for free federal tax filing and free online tax filing come online next year.

First things first, remember that you file a tax return about what you earned in 2021 in 2022. Once 2022 comes around and the tax season starts, you’ll be looking back at the period from January 1 to December 31, 2021

So, what is one thing that should be on your financial checklist before we all ring in 2022?

Review your finances over the past year. Make a list of the documents, financial or otherwise, related to your income from 2021.

This includes documents related to your work, any investments you have, your health insurance, and any government assistance programs you’ve benefited from.

Paperwork you need to gather related to your income may include:

  • Form W-2
  • Form 1099-C “Cancellation of Debt” – Canceled debt is typically considered taxable income by the IRS.
  • 1099-G “Certain Government Payments” – These are forms related to unemployment income and state/local tax refunds.
  • Form 1099-MISC “Miscellaneous Income” – These are forms that may be sent to you related to a range of different types of non-employee compensation.
  • Form 1099-R “Distributions from Pensions, Annuities, Retirement, or Profit-Sharing Plans” – These are forms you may receive concerning payments/distributions from IRAs or other retirement plans.
  • 1099-S “Proceeds from Real Estate Transactions” – These are forms that will record income you earned from the sale of a property.

There’s more..

  • Forms 1099-INT, -DIV, -B, or Schedule K-1 – These are forms that will record your investment or interest income.
  • Form SSA-1099 – These are forms you will receive if you received Social Security benefits.
  • Documentation related to alimony payments you received
  • Documentation related to your business or Farming income, including profit/loss statement, capital equipment information
  • Info and Documentation related to any miscellaneous sources of income, such as jury duty, gambling winnings, Medical Savings Account, scholarships, etc.
  • Documentation related to installment sale information, including Forms 6252, principal and interest collected during the year, SSN, and address for payer
  • Documentation related to income and expenses from any rental property you own, including profit/loss statement, suspended loss information.
free tax filing 2021
free tax filing 2021

Paperwork and information you will need to gather that can help reduce your tax liability:

  • Form 1098-E “Student Loan Interest Statement” – These are forms for student loan interest paid. The loan statements for your outstanding student loans will also be relevant here.
  • Documentation related to alimony payments you paid
  • Info and Documentation related to any IRA contributions you made during the year
  • Documentation recording your contributions to your Health Savings Account (HSA)
  • Are you a student, or do you have student dependents? Form 1098-T for tuition paid and your receipts or canceled checks for tuition paid for higher education
  • Are you a teacher? Your receipts/canceled checks for expenses paid for classroom supplies, etc.
  • Are you an armed forces reservist, an employee with impairment-related work expenses,
  • .. or a fee-basis state or local government officials, or a performing artist? Your receipts/canceled checks for employee business expenses
  • Are you self-employed? Your records related to health insurance payments and payments in qualified self-employed pension plans such as SEP and SIMPLE

In short.

The paperwork you need will be the same for all options for free tax filing for 2021 tax returns. This is including if you take advantage of any of the free online tax filing options.

Having this information organized and to hand once 2022 arrives, and you begin to receive your financial documents. This ensures you have all the information you need when free online tax filing opens up for the 2021 tax year. What’s more, this will make you less likely to forget anything in your tax return. This will help you avoid triggering an unwanted audit from the IRS.

When can I start a free tax filing for the 2021 tax year?

Information about and the application for free federal tax filing and free online tax filing will come online in January 2022. So, keep an eye on the IRS “Free File: Do your Federal Taxes for Free”. Where all the details you need will be available.

Did you use a free online tax filing option in 2021 for your 2020 taxes? In which case, you may receive an email notification when their system has come online and is ready for submissions for the 2021 tax year.

Where can I find free federal tax filing options for the 2021 tax year?

Check the IRS “Free File: Do your Federal Taxes for Free” website in January to find options for free online tax filing with an IRS partner site or to use the IRS’s Free File Fillable Forms.

Remember that IRS Free File will only be available to file your current year tax return. Each year, the program runs from mid-January to mid-October. Once the 2022 tax season is over and the program closes for the year. If you still need to file your 2021 tax return you will need to file it as a prior-year return.

Visit PriorTax.com today for more helpful information about filing your taxes.

On our website’s Knowledgebase, you will find information on late tax filing. This answers many common general tax questions, and information on how to find the information you are looking for from the IRS or your local state’s revenue and taxation departments. Or keep up today with other posts on our Tax News Blog. Here you can find helpful and timely information about filing prior year taxes.

Use our helpful resources to be better equipped to take advantage of free online and free federal tax filing options next tax season. If you have a more complicated financial situation, we offer current year tax filing services in addition to our prior year services. We support you with unlimited live support by phone, chat, or email.

With our tools at your disposal, you can be confident that you are getting your taxes done right.

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Category: Tax Deadlines, Tax Deductions and Credits, Tax News, Tax Tips and Tricks
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File 2020 Taxes Online to Efile

Posted by admin on December 21, 2021
Last modified: March 10, 2022

Filing 2020 taxes online via Efile for maximum 2020 tax return

2021 has been a busy and sometimes overwhelming year. And many of us are glad to see it finally coming to a close. If the 2021 tax season completely passed you by, you may be wondering about your 2020 tax return online and filing a return for your 2020 taxes. 

First things first, is filing my 2020 taxes still possible?

file 2020 taxes online
file 2020 taxes online

Yes, you can still file your 2020 tax return. However, the deadline for filing 2020 taxes on time was May 17, 2021. Or, if you got an extension, the deadline for filing 2020 taxes was pushed back to October 15, 2021.

Since these deadlines have passed, the IRS will consider your 2020 tax return to be late. However, they continue to accept prior year tax returns, including 2020 tax returns. The prior year tax services at PriorTax.com offer a cost-effective option to get up to date on your filing obligations. Preparing tax returns for previous years while helping you to ensure you are always filing following the right tax regulations for the right year.

Is it too late to file my 2020 tax return and receive my stimulus checks?

No, it isn’t too late to get the money available to you from the Economic Impact Payments made available to help people out during the pandemic. If you didn’t receive your stimulus checks, there is still time to claim your payments as a tax credit and receive this money as part of your tax refund.

The stimulus checks were an advance payment of a federal tax credit, the Recovery Rebate Credit. So, you’ll need to file your 2020 tax return to receive your first- and second-round stimulus checks to receive this credit. And if you received your checks but less than the full amount, by filing your 2020 taxes, you may be eligible to claim the Recovery Rebate Credit.

Can I still file my 2020 taxes online?

Since the deadline for filing 2020 taxes has now passed, your 2020 tax return is now considered a prior year return. That designation comes with a few restrictions imposed.

You’re only able to make use of the IRS’s Free File program that lets people file their 2020 taxes online until the deadline. If you use a self-preparation website to file your 2020 taxes online, you will be able to prepare your tax return paperwork online. However, once it’s ready to send off to the IRS, you will need to print, sign, and then mail off your 2020 tax return to the IRS.

If you’re looking to file your 2020 taxes entirely online, consider using PriorTax.com’s CPA Review option, available when filing your 2020 taxes with us. By opting for a CPA Review, you receive a personalized consultation with one of your certified public accounts. They will help you take maximum advantage of all of the deductions and credits for which you may be eligible, helping to reduce your tax bill or boost your tax refund. Additionally, as tax preparers registered with the IRS, they can assist with e-filing your 2020 taxes.

What happens if I am late filing my 2020 taxes?

If you are late filing your 2020 taxes and are expecting a tax refund for 2020 taxes that you overpaid, you are leaving money on the table by not filing. You have three years from the original deadline to file your return and claim your refund.

If you are late filing your 2020 taxes and you owe the IRS money, the agency imposes financial penalties for late filing and for late payment of taxes. Unfortunately, these can make your tax bill even higher. That’s because you will start to accrue interest on your unpaid tax bill from the day following the filing deadline. This interest compounds daily, which can add up.

However, even if you’re not currently in a place financially where you can pay your full unpaid tax bill, it’s often a good idea to file your 2020 tax return sooner rather than later. The late filing penalty usually works out more expensive than the late payment penalty, so it is in your interest to limit the late filing penalty from adding up.

Why can going back and filing my 2020 taxes even if I don’t owe any money be a good idea?

If the IRS owes you a refund for your 2020 tax return, by going back and filing your 2020 taxes, you can receive your refund. There’s a deadline, and you’ll need to claim your refund within three years of the original deadline to file your return. So, you have until April 15, 2024 to claim your refund on your 2020 taxes. After that date, any unclaimed excess taxes paid by U.S. taxpayers go to the U.S. Treasury.

Before filing your 2020 taxes, you can visit the 2020 Tax Calculator on PriorTax.com to calculate your refund amount. There you will find free prior year tax calculators for 2011 to 2020. These are available to help provide a personalized view of income tax returns for any of the past tex tax years. Our tax calculators are entirely anonymous and don’t require an online account or entering any identifying personal information to use.

Additionally, because of the 2020 Recovery Rebate Credit and specific to filing 2020 taxes, if you did not receive the first and/or second Economic Impact Payments or think you qualify for more than you received, it can be a good idea to file your 2020 tax return. If you’re eligible for the 2020 Recovery Rebate Credit, you’ll need to file your return to claim it, even if you wouldn’t otherwise have a filing obligation.

Still need to prepare and submit your 2020 tax return? No need to panic!

Visit PriorTax.com today to learn how we can help you get up to date and how you can prepare to file your 2020 taxes online using our safe, secure, and easy-to-use system. Our experienced tax professionals can help you prepare your 2020 tax return with confidence. They are available to answer any questions you have along the way.

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Category: Tax Deadlines, Tax for Business, Tax News, Tax Tips and Tricks, Tax Year 2020, Taxes for Prior Years
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