As we step into the new year, the tax season is right around the corner. Knowing when your taxes are due in 2023 is crucial to avoid penalties and fees. In this comprehensive guide, we will delve into the key tax deadlines for 2023, the importance of timely filing, and practical tips to ensure a smooth tax filing process.
Key Tax Deadlines for 2023
Understanding the tax deadlines is the first step towards a hassle-free tax season. Here are the most important tax deadlines for 2023:
April 18, 2023
This is the deadline for filing federal income tax returns. If you owe money to the IRS, you must also pay by this deadline to avoid late payment penalties. For instance, John, a freelance graphic designer, made sure to file his taxes and clear his dues by April 18 to avoid any penalties.
June 15, 2023
This is the deadline for making estimated tax payments if you’re self-employed or have other sources of income that don’t withhold taxes from your paycheck. For example, Sarah, who runs her own online store, marks June 15 on her calendar to remember to make her estimated tax payment.
October 16, 2023
If you filed an extension on your federal income tax return by April 18th, then October 16th is the last day to submit your completed return without facing additional late filing penalties. Remember, an extension to file is not an extension to pay your taxes.
Why it’s Important to File Taxes on Time
Filing taxes on time can help you avoid costly fees and penalties. The IRS charges a penalty fee of up to five percent per month if you fail to file or pay taxes owed by their respective deadline. In 2022, the IRS collected over $3 billion in penalties, a stark reminder of the financial implications of missing the tax deadline.
Additionally, missing out on credits such as earned income credit (EIC), Additional child tax credit (ACTC), or refundable education credit (AOC) could lower any possible refund that taxpayers would receive. In 2022, John missed out on the EIC because he filed his taxes late, which significantly reduced his refund.
Practical Tips and Advice
- Start Early: Don’t wait until the last minute to start your tax preparation. Gather all necessary documents, receipts, and information ahead of time.
- Use Reliable Tax Software: Utilize tax software to simplify the process and ensure accuracy.
- Consult a Professional: If your tax situation is complex, consider consulting with a tax professional.
Common Mistakes to Avoid
- Filing Late: This can lead to penalties and loss of refund credits.
- Incorrect Information: Ensure all personal information and income details are accurate.
- Not Filing at All: Even if you can’t pay your tax bill, it’s better to file and set up a payment plan than not file at all.
Q: What is the deadline for federal tax returns in 2023? A: The deadline for filing federal income tax returns is April 18, 2023.
Q: What if I need more time to file my tax return? A: If you cannot meet the April 18th deadline, you can file for an extension until October 16th by submitting Form 4868. However, it’s important to note that any taxes owed must still be paid by April 18th.
Q: Are state tax deadlines also being extended like federal deadlines? A: Many states have aligned their tax deadlines with the new federal date of April 18th. However, some states have different dates or have not yet announced a change as of now. Taxpayers should check with their specific state’s department of revenue or taxation agency to confirm their deadlines.