Still yet to submit your taxes? Here’s what you should be aware of

As of now this tax season, the IRS has processed over 100 million income tax filings for 2022.

This indicates that millions of households still need to submit their returns. If your household is one of them, consider these last-minute tips for filing as the deadline on Tuesday, April 18 draws near.

April 18 is not the deadline for everyone: If you reside in an area designated as a federal disaster zone, have a business there, or have pertinent tax documents held by businesses in that region, the IRS likely has already granted you an extension for filing and payment deadlines. Here you can find specific extension dates for each affected area.

Due to numerous significant weather events in recent months, for example, most tax filers in California—responsible for 10% to 15% of federal filers—have already received an extension until October 16 for both filing and payment, according to an IRS representative.

If you are in the military and are currently or were recently stationed in a combat zone, your deadlines for filing and payment of your 2022 taxes are probably extended by 180 days. However, the exact extended deadlines will rely on the date you departed (or departed from) the combat zone. This IRS publication contains more information.

Finally, if you earned very little to no income last year (generally less than $12,950 for single filers and $25,900 for married pairs), you may not have to submit a return. Nonetheless, you might want to if you believe you’re eligible for a refund due to refundable tax credits such as the Earned Income Tax Credit. (Utilize this IRS tool to determine if you’re obligated to file this year.) You might also qualify to use IRS Free File (for individuals with adjusted gross income of $73,000 or less), making it free for you to file a return.

Your salary might not be your only source of revenue: If you held one full-time job, you might think that was your sole income and that you have to declare it. However, this is not necessarily true.

Other income sources that may be taxable and need reporting include:

Get your tax paperwork in order: By this time, you should have all tax documents that third parties are obligated to send you (from your employer, bank, brokerage, etc.).

If you don’t remember receiving a paper tax form, check your email and online accounts — a document might have been delivered to you digitally.

Here are some of the tax documents you could have been sent:

“Keep in mind that there is no form for certain taxable income, such as earnings from renting out your holiday home, which means you must report it yourself,” states the Illinois CPA Society.

A last-minute strategy to decrease your 2022 tax obligation: If you qualify to make a tax-deductible contribution to an IRA and haven’t already done so for the prior year, you have until April 18 to contribute up to $6,000 ($7,000 for individuals 50 or older). This can lower your tax liability while boosting your retirement savings.

Check your return for accuracy before sending it: Do this regardless of whether you are utilizing tax software or collaborating with a tax professional.

Minor errors and oversight can delay your return’s processing (and the issuance of your refund if you’re entitled to one). Try to avoid issues such as typos in your name, date of birth, Social Security number, or direct deposit number; selecting the incorrect filing status (e.g., married versus single); making basic arithmetic mistakes; or leaving any required fields unfilled.

If you’re unable to file by April 18: If you can’t submit your return by next Tuesday, complete Form 4868 either electronically or via mail and submit it by April 18. This action will grant you an automatic six-month extension for filing.

Keep in mind, however, that obtaining an extension to file does not mean an extension to pay. Interest (currently 7%) and penalties will apply to any unpaid amount for 2022 due by April 18.

Therefore, if you believe you still owe taxes — perhaps you earned some income outside of your employment where taxes were not deducted or you experienced a significant capital gain last year — estimate the additional amount you owe and remit that payment to the IRS by Tuesday.

You may choose to do this by mail, attaching your check to your extension request form. Ensure your envelope is postmarked by April 18.

Alternatively, a more efficient method is to electronically pay what you owe at IRS.gov, said CPA Damien Martin, a tax partner at EY. By doing this, the IRS indicates you will not need to file a Form 4868. “The IRS will automatically facilitate an extension for filing,” the agency emphasizes in its guidelines.

If you decide to electronically pay directly from your bank account, which is free of charge, choose “extension” and then “tax year 2022” when prompted.

You can also make payment using a credit or debit card, but be aware that a processing fee will apply. This choice may turn out to be much more expensive than just the fee if you opt to charge your tax payment without fully paying off your credit card each month, given that high interest rates often accrue on unpaid balances.

If you owe state income taxes, remember you may need to undertake a similar process for filing for an extension and making a payment to your state’s revenue department, Martin added.

Utilize this interactive tax assistant for inquiries you may have: The IRS offers an “interactive tax assistant” that can help address over 50 basic questions regarding your specific situation concerning income, deductions, credits, and other technical matters.