In this busy and ever-changing world, filing tax returns on time can be challenging, and the consequences for late filing can be inconvenient and costly. With changing rules and deadlines in the last two tax years, taxpayers can find the filing process complicated. In this article, we have collated the key dates and other important information that can help you get on top of your tax game this year.
Key Dates for US Tax Year 2022
January 18 – deadline for 4th quarter estimated tax payments
January 24 – IRS starts processing 2021 tax returns
February 11 – submission of all details to Expat Tax Online (ETO) for 3520-A filing by March 15
February 15 – IRS begins processing refunds
March 11 – deadline for foreign trust extension requests
March 15 – deadline for filing foreign trust returns (Form 3520-A)
March 18 – submission of all information to ETO for April 18 filing
April 15 – deadline for claiming Child Tax Credit Refunds for 2018
April 18 – Due Date for federal individual income tax returns and tax payments (except expats)
April 18 – deadline for paying any tax due to avoid interest
May 14 – deadline for providing all information to ETO for June 15 filing
June 12 – deadline for expats to request an extension to file by October 15
June 15 – deadline for expats to file tax return
Tax Deadline for Expats
Those who are physically outside of the United States on April 18 will be given an automatic two-month extension to file their federal tax return. If you are living overseas, you need to file your taxes no later than June 15, 2022. However, any tax due to the IRS should be settled by April 18, otherwise interest will be added to your balance starting April 19.
Extension Request for Tax Year 2021
If you are unable to submit your tax return by June 15, 2022, you can request an extension to file for the 2021 tax year by completing an extension form on the ETO website. Once accepted, the new deadline will be October 15, 2022. You must request the extension no later than June 12, 2022.
Unclaimed Tax Return Funds
If you have any stimulus payments or extra funding that you were not able to receive during the pandemic, the IRS should send you a letter to inform you of your unclaimed money. Once you have received the notice, you will be able to correct any mistakes and request a refund or credit any missing funds on your tax return. If you haven’t received a notice from the IRS, you can claim Stimulus payment 3 on your 2021 tax return, if you haven’t received all of it, or part of it.
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Electronic vs. Manual Tax Return Filing
The IRS encourages electronic filing of tax returns and online payment, for faster, more convenient transactions. If you provide the IRS with US bank details on your tax return, any refund owed may be deposited directly into that bank account, meaning you receive the funds faster. Alternatively, the IRS will issue a check which you can deposit into your resident country bank account.
Americans living abroad often experience problems depositing checks from the IRS into bank accounts held outside the US. You can avoid this challenge by providing US bank account details, where possible.
Missed Tax Return Deadlines
If you miss the filing deadline, you should submit your tax return as soon as possible as you could incur a late filing penalty and interest charges. If you are owed a refund, such as a Child Tax Credit refund, you have three years from the date your tax return was due to file it. Any interest charges and penalties which are applied may reduce your refund amount.
What if You Are Unable to Pay?
File your tax return on time, even if you are unable to pay the total cost of your tax liability. The IRS will typically consider partial payments and payment plans for the remaining balance. This can help to reduce interest charges on unpaid amounts.
Get Ready to File Your Taxes Now
We hope that this article has helped to answer some of the important questions regarding US tax filing. For further discussion or a quote to prepare your tax return, contact Expat US Tax.