The US income tax deadline is fast approaching.
The IRS reports that they have over $1 billion in unclaimed refunds each year with an average refund of $2,800. With the tax deadline fast approaching, here are five important things you need to know before you file your return.
What is the tax deadline?
The federal income tax deadline is Monday, April 18, 2022, but the income tax filing deadline varies by state. Check with your state department of revenue for the exact deadline for your location.
How do I file my taxes?
There are many ways to file your taxes depending on your budget. Here are your options:
Remember that all tax preparers must have a preparer tax identification number.
After filing, you can check the status of your case with this tool.
If you made a mistake on your forms or want to make changes or additions, complete a 1040x form.
What is the extension period?
If you miss the April 18 deadline, you must request an extension using IRS Form 4846 which will give you until October 17, 2022.
Note that if you owe money to the IRS, the deadline for making those payments is still April 18. The extension is only granted to file your tax return.
What are the estimated tax payment dates for 2022?
Estimated tax payments are for people who are self-employed. They are required to pay taxes in four instalments throughout the year as they estimate how much they still need to earn for the coming months.
Similar to Form 1040, Form 1040-ES calculates your estimated tax by dividing it into 4 installments.
You can also use this free online tool to help you calculate your estimated tax payment.
The quarterly payment schedule for estimated tax payments in 2022 is as follows:
Payment 1 is due on April 18, 2022.
Payment 2 is due June 15, 2022.
Payment 3 is due September 15, 2022.
Payment 4 is due on January 17, 2023.
Child Tax Credit Portal
A tax credit reduces your final tax bill dollar for dollar. Common tax credits include the Child Tax Credit, the Dependent Credit and the Retirement Savers Tax Credit.
The Child Tax Credit (CTC) is granted to taxpayers with dependent children. You can use this child tax credit portal to check your CTC eligibility.
For the 2021 tax year, the child tax credit offers up to $3,000 per child 17 or younger and up to $3,600 per child under 6, according to the IRS.
This story was originally featured on Fortune.com