HomeFinanceTax day 2023 is around the corner - are you ready?

Tax day 2023 is around the corner – are you ready?

This year, tax day has been moved from its traditional date of April 15th to April 18th for most people, with the exception of those affected by severe storms in California, Georgia, and Alabama who have until October 16th to file their returns. April 18th is also the last day to file for a tax extension or make contributions to certain retirement accounts for the 2022 tax year. The reason for the change is that April 15th falls on a Saturday, and the next business day, April 17th, is a holiday in the District of Columbia. As a result, the next business day, April 18th, is the deadline for electronically filing a tax return, postmarking a paper return, or requesting an automatic extension.

Here’s what other dates you should know. To file your federal tax returns for the 2022 tax year, the deadline is October 16, 2023, if you have requested an extension. It’s important to note that an extension only grants an additional six months to file your tax return, but you still need to pay any tax liability by the original deadline of April 18, 2023. It’s worth mentioning that the extension to file doesn’t mean an extension to pay your taxes. There are three ways to request an extension, such as filing through your tax-filing software, submitting the extension request online through an IRS partner software provider, or filing a paper Form 4868. Some of the software providers offer free extension services to eligible taxpayers based on specific criteria, such as adjusted gross income below a certain amount or filers above a certain age.

For taxpayers who need to make estimated tax payments, they can request an extension by making payments through their tax-filing software, if the software supports it, or through the IRS website using payment methods such as Direct Pay, Electronic Federal Tax Payment System, or debit/credit card. Additionally, taxpayers can request an extension by filing a paper Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, through mail. The form should be filled out according to the instructions and accompanied by a check or money order if there is any tax balance due. The correct IRS branch to mail the extension form depends on your state of residency. October 16, 2023, is also the deadline for making contributions to SEP IRAs and solo 401(k)s if the employer requested an extension by April 18th.

Severe storm relief deadline is October 16, 2023:

The IRS has provided relief to victims of severe storms in California, Georgia, and Alabama by extending the filing deadline to October 16, 2023. This extension offers affected taxpayers extra time to file their tax returns, make tax payments, and contribute to their IRA accounts for the 2022 tax year. The relief is only available for those in areas that have been declared a disaster by the Federal Emergency Management Agency (FEMA). Rebecca, who is a former investment tax certified public accountant (CPA), is now a reporter for Yahoo Finance.

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