The IRS reminds individuals and businesses Monday, April 18 is the deadline for filing 2021 tax returns, but also the last day to make 2021 contributions to Individual Retirement Accounts, collect unclaimed 2018 tax refunds, pay employment taxes, and submit first quarter estimated tax payments for 2022.
2021 Income Tax Deadline
The deadline to submit 2021 tax returns, or an extension to file and pay tax owed, falls on April 18 this year instead of April 15, because of the Emancipation Day holiday in the District of Columbia. The IRS wants last-minute filers to know tax help is available to file a tax return, request an extension or make a payment, 24 hours a day on IRS.gov.
The IRS encourages taxpayers to file electronically because tax software does the calculations, flags common errors, and reduces tax return errors by prompting taxpayers for missing information. The fastest way to receive a refund is to file electronically and use direct deposit.
An estimated 15 million Americans are expected to file for an extension, however, a request for an extension is not an extension of time to pay. Taxpayers must estimate their tax liability on Form 4648 Application for Automatic Extension of Time to File U.S. Individual Income Tax Return and pay any amount due by April 18 to avoid penalties and interest.
Unclaimed Refunds
There are an estimated 1.5 million taxpayers who did not file a 2018 tax return needed to claim tax refunds worth more than $1.5 billion, the IRS said. Those refunds will become the property of the U.S. Treasury when the three-year window of opportunity to claim those refunds closes April 18, 2022.
IRA Contributions
April 18 is also the deadline to make 2021 contributions to Individual Retirement Arrangements (IRAs). Contributions can be made to a traditional or Roth IRA until the filing due date, April 18, but must be designated for 2021 to the financial institution. For more information, see Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
Employment Taxes
Employment taxes are due April 18 for household employees including housekeepers, maids, babysitters, gardeners, and others who work in or around a private residence as an employee if they were paid $2,300. For more information, see Publication 926, Household Employer’s Tax Guide.
2022 Q1 Estimated Tax Payments
The first quarter estimated tax payment for 2022 is also due on April 18. Taxpayers are encouraged to check their withholding for 2022 after they have filed their 2021 tax return. It can protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year.
