2021 tax filing season is here! Traditionally, tax day in the United States is April 15. However, federal holidays impact tax deadlines, and this year is no exception.
For most taxpayers, the new due date for the 2021 tax season is April 18, 2022.
Due to the Emancipation Day holiday in the District of Columbia, the filing deadline for 2021 taxes has changed. Washington D.C. usually celebrates Emancipation Day on April 16, but the 16th falls on a Saturday this year. So, the new observed date for the Emancipation Day holiday is Friday, April 15, 2022.
Since April 15, 2022, falls on a Friday, the new tax deadline is the following Monday.
What Is Emancipation Day in Washington, D.C.?
The Emancipation Day holiday commemorates the D.C. Compensated Emancipation Act of 1862. This legislation freed over 3,000 enslaved individuals and offered money to assist them with emigration. Former owners were also granted a monetary amount under the Emancipation Act.
Tax Filing Deadline for 2021
While most taxpayers must submit their state and federal tax returns by the April 18th tax filing deadline, there are additional exceptions. If you are eligible for an automatic six-month extension this tax year, Monday, October 17, 2022, is your new tax deadline.
Furthermore, residents of Maine and Massachusetts have until Tuesday, April 19, 2022, to pay taxes because of the Patriots’ Day holiday. This holiday is observed in honor of the battles of Lexington, Concord, and Menotomy, a few of the initial battles of the American Revolutionary War.
The April 18th tax deadline also does not apply to individual taxpayers who pay quarterly estimated taxes. If this is your situation, you would still stick to your predetermined quarterly schedule.
Last year, due to economic struggles caused by the COVID-19 pandemic, the IRS pushed back the tax deadline to May 17, 2021. Undoubtedly, this extension was a relief to many citizens struggling to file and submit their federal or state income taxes. However, the extension also set the IRS back a bit. They continue to process 2020 tax returns received after April 2021. But, don’t worry; if you filed after April and your 2020 tax return is still awaiting process, you will still be able to submit your 2021 tax return.
Suppose you filed before April of last year, and your 2020 tax return was free of errors and did not require further review. In that case, the IRS should have already issued your refund if eligible. If you need money now, you may want to file your taxes as early as possible this year. The IRS is typically faster with issuing earned income tax credits for filers who submitted their tax returns well before the filing deadline.
What You Need To Know About Child Tax Credit and Economic Impact Payments
In 2021, the government issued a series of payments to eligible taxpayers and eligible taxpayers with children. While these payments are not considered taxable income, the IRS requires proof of these payments to determine if taxpayers can claim a Recovery Rebate Credit on their 2021 federal tax return.
The Child Tax Credit was government-issued funding for taxpayers who had at least one child claimed as a dependent and who met certain yearly income requirements. If families claimed more than one child, they were entitled to an additional child tax credit for each child.
The Economic Impact stimulus payments were part of the American Rescue Plan, created in an effort to provide Americans with financial relief during the pandemic. Most eligible taxpayers received up to three stimulus payments.
Taxpayers requesting a rebate for their Child Tax Credit should use the information on the document (letter 6419) sent by the IRS earlier this year. Likewise, those looking for a rebate from Economic Impact payments should also receive a document (letter 6475) from the IRS containing the information required for the estimated tax refund.
Taxpayers should receive the proper documentation from the IRS well before the tax deadline, ensuring all eligible citizens have the opportunity to claim their estimated tax payments.
What You Need to File Your State and Federal Tax Return
The IRS website and tax professionals recommend gathering necessary documentation before you start to file your tax return. Once individuals receive Forms W-2 and other required earnings information from their employer, they may begin IRS Form 1040 or Form 1040-SR. If you work contract or are self-employed, you will need different documentation. To track self-employment income from a contract position, individuals will need Forms 1099-NEC instead of a W-2.
Thankfully, if you must file state tax, that same W-2 and 1099 forms should be the same documents you need. Since they require similar documentation, adding state taxes to your federal tax return doesn’t take much extra time.
Providing routing and account numbers to a bank account, prepaid debit card, or mobile financial app/online account are the most efficient ways to receive your tax return.
How To Get Your Tax Refund as Soon as Possible
Last tax filing season, the IRS website reported the service receiving approximately 145 million calls between January 1, 2021, and May 17, 2021. That 145 million is more than four times the average amount of calls the IRS typically receives during tax filing season. In 2022, as phone volumes continue to rocket, the IRS continues to encourage taxpayers to file electronically.
According to IRS Commissioner Chuck Rettig, “The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays. Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year.”
With so many up-to-date online resources available, the vast majority of taxpayers have access to both free and paid tax professionals and services. When you successfully e-file and choose direct deposit, you should expect your tax refund within about twenty-one days. If you owe taxes, you may also opt to deduct the amount from your tax return. That way, you don’t have to worry about any unpaid tax!
How To Get Quick Cash While You Wait for Your Tax Return
If you don’t make enough money to pay your bills and don’t have time to wait for your tax return, you may consider a few options for fast cash. Here are some common ways people may get money while they are waiting for their tax returns:
- Get a temporary part-time job that pays well
- Try online quick cash loans
- Borrow from your savings account
Are you looking for other ways to save money while waiting for your tax return? Check out free tools like the CreditNinja debt calculators or blog for tips on organizing finances, saving money, and more! And for more info, and to answer questions like “why do I owe state taxes?” check out the rest of the CreditNinja Blog!
References:
2022 tax filing season begins Jan. 24; IRS outlines refund timing and what to expect in advance of April 18 tax deadline
DC Emancipation Day
Patriots’ Day
Advance Child Tax Credit Payments in 2021
Economic Impact Payments
