From Refunds to Extensions, Your Last-Minute Tax Day Reminders

With just a few days until Tax Day, tensions are rising for some taxpayers. Deadlines are often intimidating, but external factors, including inflation and a potential uptick in pandemic numbers, are reminders that while tax season is officially back to “normal,” some families are still facing challenges.

Here are some tips to help you get through the day—and rest easy.

Know the Due Date

Tax Day is April 18 this year for most taxpayers, thanks to the Emancipation Day public holiday in the District of Columbia. By law, when April 16 falls during a weekend, Emancipation Day is celebrated on the nearest weekday—that’s April 15—and not necessarily the following weekday. In 2022, that means Tax Day is moved to Monday, April 18.

Taxpayers in Maine or Massachusetts have even more time to get their returns to the IRS. Taxpayers in those states have until April 19, 2022, to file, due to the Patriots’ Day holiday.

Timely Mailing

If you’re planning on filing a paper return or paying by check, you’ll want to be sure to put the return and/or check in first-class mail by the due date. As long as your return is postmarked by the due date, the IRS considers your federal income tax return filed on time.

In the event of a dispute, you’ll want to be able to prove that you mailed your tax return on time. Simply stating that you popped your check or return into the postbox isn’t proof of mailing. Your best bet is registered mail—and it’s even confirmed by statute. The Tax Code makes clear in section 7502(c) that registered mail “shall be prima facie evidence that the return, claim, statement or other document was delivered to the agency, officer, or office to which addressed” and “the date of registration shall be deemed the postmark date.” Prima facie translates to “on the face of it"—meaning that it’s sufficient proof.

It’s also clear from section 7502(c) that you must send your tax form or payment to the correct address. The instructions for the corresponding tax returns, including your Form 1040, will have a list of mailing addresses. But if you’re stuck, you can also find mailing addresses on the IRS website, organized by state.

If you don’t want to rely on the post office, you can also use a private delivery service to file your tax return. The IRS will consider your return timely filed if you use one of the approved private delivery services. You’ll find a detailed list on the IRS website.

Remember that most private delivery services cannot deliver to a P.O. box. You can find a list of addresses for private delivery services on the IRS website.

E-file

Of course, you can avoid all of the post office and private delivery service hassles by e-filing your return. The IRS encourages taxpayers to e-file: It saves time, and, according to the IRS, your return is likely to be more accurate. Additionally, processing paper tax returns could take several weeks longer than usual due to staffing issues. The IRS encourages taxpayers and tax professionals to file electronically, and the due date for timely filing remains the same.

Extensions

If you need more time to file your return, you can request an automatic extension. Taxpayers who timely request an extension—meaning before Tax Day—will have until Oct. 17, 2022, to file. To file an extension, use Form 4868, available online at IRS.gov and through most tax software and your tax professional. Remember, however, that an extension gives you extra time to file but not extra time to pay. If you will owe tax, estimate your tax liability and pay any amount due with the extension.

You can also get an extension by paying all or part of your estimated income tax due with Direct Pay, the Electronic Federal Tax Payment System, or a credit or debit card. If you appropriately note that it’s an extension payment, you won’t have to file Form 4868.

Some taxpayers may get more time to file without asking for extensions. These include taxpayers who live and work outside of the U.S., members of the U.S. Armed Forces who perform military service either in a combat zone or service in direct support of military operations in a combat zone, and taxpayers who live or work in a disaster area. If that applies to you, check the IRS website or your tax professional for more information.

Estimated Payments

April 18 isn’t just Tax Day: It’s also the due date for most taxpayers to make estimated payments for the first quarter of 2022.

Generally, you should make estimated tax payments if you have income that is not subject to withholding. This typically includes income reported on a Form 1099—like self-employment income, interest, and dividends—as well as income that might not be conveyed through a tax form, like some cryptocurrency gains. You may also owe if you’re self-employed, a retiree with a pension or other income, or a partner in a partnership or LLC.

You will need to make estimated payments if:

1. You expect to owe at least $1,000 in tax for the 2022 tax year after subtracting your withholding and credits.
2. You expect your withholding and credits to be less than the smaller of 90% of the tax to be shown on your 2022 tax return or 100% of the tax shown on your 2021 tax return.

You can figure the amount of your estimated tax by using Form 1040-ES, Estimated Tax for Individuals. You can calculate the tax yourself and use the payment coupons on the web, or better yet, consult with your tax professional. Be sure to include and share any potential changes in your 2022 income when figuring the tax.

If you do not pay enough tax by the due date for each quarter, you may be charged a penalty. That said, if you miss a payment, there’s no need to panic. Simply catch up when you can to reduce or mitigate the penalty which is worth, roughly, the unpaid interest on the estimated payment.

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Refunds

While many taxpayers are filing returns expecting to owe, an estimated 1.5 million taxpayers may be entitled to unclaimed income tax refunds totaling almost $1.5 billion.

If you haven’t yet filed a tax return, but you’re entitled to a refund, you typically have up to three years to claim your money. If you don’t file by the due date, the money escheats to the U.S. Treasury, and it’s lost to you forever.

For 2018 tax returns, the due date for filing and claiming a tax return is April 18, 2022, for most taxpayers. Those taxpayers living in Maine and Massachusetts still have an extra day.

You’ll need your forms W-2, 1098, 1099, or 5498 from 2016 to file your return. If you don’t have your old tax forms, you can request copies from your employer, bank, or other payer. You can also order a free wage and income transcript using the Get Transcript Online tool on the IRS website.

Of course, if you owe money for student loans or back taxes, or if your refund is otherwise earmarked for seizure, such as for child support obligations, any tax refund will be offset by the amounts owed. Additionally, if you are not compliant or have not filed tax returns for 2019 and 2020, the IRS may hold your tax refund.

Refund Status

If you’re looking for information about the status of your current tax refund, you can access the Where’s My Refund? tool on IRS.gov for the most up-to-date information. A mobile app is also available through Google Play, the Apple Store, and Amazon.

The IRS says your refund status should be available within 24 hours—if you e-filed—or within four weeks if you sent your return by mail. The app will show your refund as it progresses through three stages: return received, refund approved, and refund sent. Updates are made daily, usually overnight—there’s no advantage to checking multiple times throughout the day.

If you don’t have access to the internet, you can call Where’s My Refund?, the IRS’ automated refund hotline, at 800-829-1954.

Ask for Help

If you run into trouble, help is available. Your best bet is to check with the IRS online—you can check your tax account and find other information. You can also call with questions, but be prepared to wait since the IRS is still struggling to get caught up from the backlog. For most taxpayers, the best number to call is 1-800-829-1040.

This is a weekly column from Kelly Phillips Erb, the Taxgirl. Erb offers commentary on the latest in tax news, tax law, and tax policy. Look for Erb’s column every week from Bloomberg Tax and follow her on Twitter at @taxgirl.