The Process of Filing Taxes

Jan 03, 2023 By John Davis

You may file your taxes in several different ways. You can do them on your own, using tax preparation software or an internet program, going to a tax preparer either in person or virtually, or seeking assistance from a certified public accountant or registered agent. Depending on the gravity of your circumstances, there is a wide range of assistance options, each of which comes at a different price.

If your annual income was less than $73,000 in 2021, you could use IRS Free File to prepare and file your taxes without paying a fee. As part of this initiative, the Internal Revenue Service collaborates with several online tax preparation businesses to provide free tax filing services. Visit the Free File page of the IRS website for more details. The Free File portal will become available on January 14, and taxpayers may begin submitting their taxes to the Internal Revenue Service beginning on January 24.

If you are eligible, the Volunteer Income Tax Assistance (VITA) tax of the Internal Revenue Service and the TCE program provide free assistance with preparing your taxes. Check the Internal Revenue Service database to see whether any of these resources are offered in your region.

Some firms that provide tax software also provide free versions that are not dependent on the user's income. If you have a basic tax return, TurboTax, for instance, will let you file your taxes for free in one of three ways: You have the option of doing your taxes with TurboTax Free Edition, getting assistance and a final review from a tax professional with TurboTax Live Basic (free until March 31), or having a TurboTax professional finish your return with TurboTax Full Service.

When Can You File Your Taxes?

On January 24, 2022, the Internal Revenue Service will collect tax returns for 2021. You should hold off on filing your taxes until you have received all the essential paperwork, such as your W-2 from your job and 1099 forms that indicate earnings from other areas. Even though brokerage companies have until February 15 to produce certain 1099s, most of these papers must be provided by January 31.

You have the option of getting these documents sent to you or getting them online by signing into your account. Using an online tax-filing service like TurboTax, you can automatically import your W-2s and 1099s from your payroll provider or banking institution. This feature is available with certain other services as well.

According to Greene-Lewis, you should also keep an eye out for two letters from the IRS this year that provide information for submitting your tax returns for 2021. If you were eligible for the child tax credit in 2021 and claimed it, the Internal Revenue Service will send you Letter 6419 reporting the amount of advance child tax credit you were awarded as well as number of qualifying children that was used to determine the amount of advance payments. When you file your tax return, use this information to balance the amount of tax credit you got with the amount you were entitled to.

Everyone paid during the third cycle of economic impact payments, which ran from March to December 2021, will get letter 6475 from the Internal Revenue Service (IRS). You should get this letter by the end of January, and you may consult it to figure out whether you can claim the recovery rebate tax credit on your income tax return for 2021.

When Are Taxes Due?

Because of the Emancipation Day holiday on Friday, April 15, 2022, plus that both Saturday and Sunday, April 16 and 17, are weekends, the deadline for filing federal income taxes will be moved to Monday, April 18, 2022. As a result of the Patriots Day holiday in Maine and Massachusetts, the deadline for taxpayers in those states has been extended to April 19. The tax deadline for your state income taxes differs from that for federal taxes. For instance, Virginia's typical deadline for paying income taxes is May 1.

It is possible that residents in locations that were struck by natural catastrophes would be given an extension on the deadlines. Residents of specific parts of Colorado impacted by the wildfires that occurred in December have until May 16 to file their returns of federal income tax obligations, for instance. According to Hamilton, the deadline has also been pushed out to May 16 for residents of Kentucky, Illinois, and Tennessee whose residences are located inside the disaster zone established by FEMA due to the storms. He believes that individual states have the discretion to decide whether or not to adhere to the federal due dates.

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