For some, June means summer vacations, backyard barbecues, weddings, graduations, and the NBA Finals.

For many, taxes are probably among the last things they want to think about right now.

Unfortunately, the IRS doesn't take the summer off.

While the April 15 tax filing deadline has come and gone, there are important IRS deadlines to keep on your radar this month. If you're still waiting for a tax refund, there are a few developments worth noting.

Here's more about key IRS deadlines for June, refund processing, and some common summer activities that could affect next year's tax bill

June 15 estimated taxes

The second estimated tax payment for the 2026 tax year is due June 15, 2026.

The U.S. tax system operates on a pay-as-you-go basis, meaning taxpayers are generally expected to pay taxes throughout the year as income is earned. While traditional employees typically have taxes withheld from each paycheck, that isn't always the case for other types of income.

Estimated tax payments are commonly required for:

• Self-employed workers
• Freelancers and independent contractors
• Gig workers
• Small business owners
• Investors with significant dividend, interest, or capital gains income
• Landlords receiving rental income
• Some retirees who don't have enough tax withheld from their retirement income

Failing to pay enough tax during the year can result in IRS underpayment penalties, even if you ultimately pay your full tax bill when you file your return.

Taxpayers can use Form 1040-ES to estimate how much they should pay. After the June payment, the remaining estimated tax deadlines for 2026 are September 15, 2026, and January 15, 2027.

For more information, see our report: When Are Estimated Tax Payments Due?

June 15 filing deadline for Americans living abroad

June 15 is also an important date for U.S. citizens and resident aliens whose tax home and abode are outside the United States and Puerto Rico.

These taxpayers receive an automatic two-month extension beyond the standard April filing deadline. As a result, many expats have until June 15, 2026, to file their 2025 federal income tax returns.

It's important to remember that an extension applies to filing your return, not to paying your taxes. (That payment was due in April.) Interest generally begins accruing on unpaid balances after the regular April tax deadline.

Keep in mind:

• Many Americans living overseas might qualify for tax benefits, such as the Foreign Earned Income Exclusion or the Foreign Tax Credit, but they generally must file a U.S. tax return to claim them.
• Taxpayers who need additional time can typically request an extension until October by filing IRS Form 4868.

IRS refund status: Why some taxpayers might receive refunds in June

The IRS continues to issue refunds throughout the summer, and many taxpayers who filed later in the season might still be receiving their refunds in June.

• For most taxpayers who file electronically and choose direct deposit, refunds are generally issued within about 21 days.
• However, not every return moves through the system that quickly, particularly if additional review or corrections are required.

One issue affecting some taxpayers this year involves IRS Notice CP53E.

As Kiplinger has reported, this notice is generally issued when a direct deposit is rejected, most often due to incorrect or mismatched bank account information or a financial institution declining the deposit. When that happens, the IRS typically eventually issues the refund as a paper check.

While taxpayers still receive their money, the switch from electronic payments to mailed checks can add processing time and create delays that many weren't expecting. The CP53E letters, which have reportedly been sent to millions of taxpayers this year following the tax agency's move to phase out paper refund checks, have caused confusion.

If you're still waiting on a refund, the IRS recommends checking the "Where's My Refund?" tool on IRS.gov or logging directly into your official IRS online account.

For more information, see our IRS tax refund calendar for 2026.

Summer activities that could affect your next tax bill

Even if you've already filed your taxes this year, several common summer activities can affect the return you'll file next year, in early 2027.

Some common summer events that can affect taxes include:

Starting a summer job

Students and seasonal workers often take on summer employment. Keep in mind that even part-time work can affect tax withholding and potentially create a tax filing requirement.

Taking on gig work or a side hustle

Driving for a rideshare company, freelancing, selling products online or earning income through an app (a few examples) can create taxable income that isn't subject to tax withholding. That might mean estimated tax payments are necessary for some to avoid penalties later.

Getting married

Summer remains one of the most popular wedding seasons in the U.S. Marriage can affect filing status, tax brackets, deductions, credits and withholding. Newlyweds might want to review their Form W-4s to ensure enough tax is being withheld from their paychecks.

Welcoming a child

Having a baby or adopting a child might make taxpayers eligible for valuable tax benefits, including the Child Tax Credit and other family-related tax breaks.

Buying or selling a home

A home purchase can affect deductions and tax planning, while a home sale could potentially trigger capital gains considerations depending on the circumstances.

Changes in retirement income

Some retirees begin taking required minimum distributions (RMDs) during the year or adjust withholding on Social Security and retirement plans. Those changes can affect overall tax liability.

June tax concerns: Bottom line

The IRS is reminding taxpayers to review their withholding and tax situation whenever major life or income changes occur.

But keep in mind that midyear is a good time not only to review your potential tax liability and make adjustments that might lower your next tax bill, but also to take a holistic look at your finances.

Overall? Everyone's tax and financial situation is different. If you have any concerns about whether the June tax deadlines affect you, it's best to consult with a tax professional or certified financial planner who can provide tailored advice and guidance.

Read More

• Federal Income Tax Brackets and Rates for 2026
• NBA Finals Put the Jock Tax in the Spotlight
• IRS CP53E Letters Could Change Due to Taxpayer Backlash

Are you one of those taxpayers who rushes to the post office or collection box on Tax Day, April 15, to mail your tax return, confident the IRS will accept your offering as filed on time? If you are, this year you could be in for a rude shock.

A new modernization program, known as USPS’s "Delivering for America" (DFA) initiative, has changed how postmarks work.

Before December 2025, the United States Postal Service (USPS) postmarked your envelope the day it was dropped into a mailbox or collected. The IRS was bound to recognize your tax return as timely filed, even if it arrived at the tax agency days later.

Now, mail is postmarked only after delivery to a processing facility. But the pickups aren’t constant. So uncollected envelopes have to wait until the following day to be taken to the processing facility, which could delay the postmark date by 24 hours or longer.

The result? The IRS could levy automatic penalties for late filing, late payment, and interest, for a return you delivered to the USPS on April 15 but was not postmarked until after that date.

Fortunately, if you typically mail your tax return, there are ways to circumvent the postal speed bumps. Here's what you need to know before Tax Day.

USPS postmark rule change: How late can I file my taxes?

The new USPS rule is a major shift in how the postmark date is legally defined and communicated to the public.

With the rule change, the postmark explicitly reflects the date an automated sorting machine first processes the mail at a regional processing facility. It is not the date when the mail is handed to a carrier, dropped off at a retail postal facility, or placed in a collection box, as would be the case before the change.

However, the new rule does NOT change the fact that your tax return must be postmarked by April 15 to be recognized as timely filed by the IRS.

Missing the IRS April 15 tax deadline: Late filing and late payment penalties

If you don't file by the April 15 deadline, the IRS may impose two penalties: one for late filing and the other for late payment. They can be imposed simultaneously.

Late tax filing penalty. If you don’t submit your return by the deadline (or by the extended deadline if you requested one), the IRS imposes:

• A 5% failure-to-file penalty on the unpaid tax for each month or part of a month the return is late.
• The rate is capped, maxing out when the penalty equals 25% of your unpaid taxes.
• If you file more than 60 days late, the minimum penalty for 2026 is the lesser of $525 or 100% of the tax you owe.

Late tax payment penalty. If you fail to pay the tax due by the deadline, the IRS imposes:

• A 5% failure-to-pay penalty on the unpaid tax for each month or part of a month it remains unpaid.
• This penalty is also subject to a cap, maxing out at 25%.

Then, on top of penalties, the IRS charges interest at a 6% annual rate for the second quarter of 2026, compounded daily. Unlike penalties, there is no cap on interest.

How to beat the April 15 deadline with the USPS rule change

The IRS follows the “first official mark” rule, which means the earliest legible postmark affixed by a USPS-controlled source.

So, if you can’t mail your tax return early enough to avoid the possibility of it being postmarked after April 15, here are three different avenues you can take to navigate the new USPS postmark rule:

1. At the postal facility. Go to the counter and ask the clerk to "round-date stamp" or "hand cancel" your item (this assumes you’ve already affixed the proper postage). This is the circular, manual stamp most of us are familiar with. To avoid legibility issues cropping up during processing, ask the clerk to place the stamp in a clean area of the envelope.
2. At the retail counter. Get a postage validation imprint (PVI). After you pay for postage, the clerk prints a white rectangular sticker (the PVI) and affixes it to your envelope. Like the hand stamp, the IRS accepts the date on a PVI label as the official postmark and proof of when USPS took possession of your return.
3. Send your return via certified mail. This is sometimes called "the gold standard." With certified mail, you get a receipt with the date stamped on it. If the IRS claims they never received the return or that it was late, this piece of paper is physical proof that a USPS employee held your tax return in their hands on April 15.

If you must file a paper return, the best thing is to get it done and drop your tax filing in the mail as soon as possible. But things happen, and suddenly we’re scrambling at the last minute. Hopefully, these tips on mailing your tax returns on time will give you a little peace of mind.

Read More

• Should You File a Tax Extension? 5 Pros and Cons to Weigh Before April 15
• Tax Tips for Last-Minute Filers
• Mailing Your Tax Return This Year? What to Know Before You Do

Are you expecting a tax refund this year? Millions of taxpayers are, but as many as 1 million individuals could unknowingly be missing out.

The average refund amount this tax season was $3,116, according to the latest data from the IRS. As of April 4, the tax agency has paid over $211 billion in tax refunds after processing over 100 million tax returns. More than 140 million individual tax returns were expected to be filed by the April 15 deadline.

For many U.S. households, the federal tax refund is the largest check they will receive this year. Some folks, particularly those who don’t file because they don’t earn enough, may be missing out on a bunch of tax breaks and deductions.

The IRS warns that close to a million individuals who fail to file prior-year returns are potentially owed a tax refund each year. Even though the April 15 federal deadline has passed, the IRS doesn’t penalize you if you’re due a refund check.

Here are some popular tax credits you don’t want to skip. Some could be expiring this year.

You may qualify for the Earned Income Tax Credit

The earned income tax credit (EITC) is a federal tax break designed for workers with low- and moderate-income, with or without children who work part or full-time. It’s also a refundable credit, meaning you can get a refund even if you don’t owe taxes.

Nationwide, 23 million eligible workers received $64 billion in EITC last year. As reported by Kiplinger, the average taxpayer received about $2,743 in tax credits for the 2023 tax year (taxes filed in early 2024). This year, your refund could be bigger.

• For 2024, the EITC is worth up to $7,830 for eligible families with three or more children, up from $7,430 the previous year.
• Meanwhile, eligible workers ages 25 to 64 without kids can claim up to $632 for 2024.

Some states have also built a supplemental tax credit for individuals eligible for the federal EITC.

For example, Rhode Island became the first to create its own version of the earned income credit in 1986. To date, 31 states plus the District of Columbia and Puerto Rico offer EITC.

You can also claim local EITC in Montgomery County, Maryland, New York City, and San Francisco. According to the Institute on Taxation and Economic Policy (ITEP), around 700,000 households claimed the local level EITC.

Don’t miss the Child Tax Credit

The child tax credit (CTC), claimed by more than 46 million taxpayers each year, is a family tax break for parents and caregivers with dependent children under 17.

This year, you can get up to $2,000 per child. How much you’ll receive depends on your modified adjusted gross income (MAGI) and filing status. The refundable portion of the credit is worth up to $1,700.

Like the earned income tax credit, some states have enacted an additional child tax credit payment for households that are eligible for the federal credit.

For example, Minnesota offers the largest state child tax credit in the nation. For the 2023 tax year, more than 223,000 Minnesotan taxpayers claimed the tax break, which averaged $1,242. Eligible households may qualify for a tax credit worth up to $1,750 per qualifying child, with no limit on the number of children claimed.

So, make sure your state offers the child tax credit.

It’s worth noting that the federal child tax credit is slated to decrease by the end of 2025 due to sunsetting provisions of President Donald Trump’s Tax Cuts and Jobs Act (TCJA). The Republican-led Congress is drafting a comprehensive legislative package referred to as Trump’s ‘one big beautiful bill’ to expand this and other tax cuts.

If lawmakers fail to expand the TCJA in time, the child tax credit will drop to $1,000 per qualifying child.

Child and Dependent Care Tax Credit

The child and dependent care tax credit is a non-refundable tax break for working parents or caregivers. It’s also at risk of being repealed by the Republican-led Congress to help fund Trump’s proposed tax cuts.

Currently, the credit is worth 20% to 35% of qualifying expenses and is based on your adjusted gross income. The maximum amount of qualifying expenses you can claim for the 2024 tax year is:

• $3,000 for one qualifying person
• $6,000 for two or more qualifying dependents

There’s also a Credit for Other Dependents

If you don’t qualify for the federal child tax credit, you may be able to claim the Credit for Other Dependents. This credit can be claimed in addition to the Child and Dependent Care Credit and the EITC.

• The maximum credit amount is $500 for each qualifying dependent
• The credit phases out if the taxpayer’s income is more than $200,000 (single), or $400,000 (for couples filing jointly)

Worth noting: This tax credit was created as part of Trump’s Tax Cuts and Jobs Act of 2017 and is due to expire at the end of the year unless Congress extends the provision.

Tax breaks for college students

If you’re a student, taxes are likely the last thing on your mind. However, you could be missing out on education tax credits and deductions that can help you recover some of the expenses tied to your college costs.

This tax season may also be the last chance for you to claim popular tax breaks like the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC), as they are earmarked on the list of potential tax breaks on the GOP’s chopping block.

What are these tax credits good for?

• With the AOTC, eligible taxpayers (a student, parent, or spouse) can claim up to $2,500 in relief for qualified expenses. These may include tuition, fees, and necessary items such as books or supplies.
• The Lifetime Learning Credit is a tax credit that covers 20% of the first $10,000 of qualified education expenses, or a maximum of $2,000 per return. There’s no limit on the number of years you can claim this tax break.

You can still file for free

If you missed the April 15 tax deadline, don’t panic just yet. You can still file your tax return, and if you are due a refund, the IRS won’t penalize you for filing a late return.

You can also file for free directly with the IRS, but the clock is ticking.

• Taxpayers who have yet to file their 2024 tax return and earned $84,000 or less last year have until Oct. 15, 2025, to file with an IRS Free File partner.
• Qualified taxpayers in 25 states have until Oct. 20, 2025, to file with IRS Direct File.

In case you missed it, the Trump administration reportedly plans to eliminate the Direct File program. So, this could be your last opportunity to use the free filing program.

Related Content:

• What Happens If You Missed the Tax Deadline?
• States With 2025 IRS Tax Deadline Extensions
• 12 Education Tax Credits and Deductions to Know

Tax Day is finally here, and unless you’ve filed for free, tax prep can take quite a bite out of your wallet.

To celebrate the end of tax season, which falls on Wednesday, April 15, this year, many restaurants nationwide will offer deals, discounts, and freebies to sweeten your civic duties as a taxpayer.

Whether you are waiting until the last minute to file your taxes, need to file an extension, or have already filed your taxes and are waiting on a refund, don’t miss out on these limited promotions to toast off Tax Day.

Here’s where you can score deals on Wednesday and make your tax obligations a bit more appetizing.

Burgers and Sandwiches

Shake Shack free burger

From now through April 27, 2026, customers can enjoy a free single Black Truffle Burger, Black Truffle Shroom, or Black Truffle Parmesan Fries with a $10.40 or more order.

To score this deal, enter promo code TRUFFLETAX at checkout

Potbelly tax day deal

Need to take the edge off of Tax Day? On April 15, if you purchase one Big or Original sandwich at Potbelly, you can get an Original free sandwich with the promo code BOGO.

You can claim your Potbelly deal in-store, online, or by ordering via the app or website.

Burger King

Since Tax Day falls on a Wednesday this year, BK is highlighting "Whopper Wednesday."

Royal Perks members can grab a Whopper for $3.99. Also, check the app for a BOGO Original Chicken Sandwich deal.

Sweet Treats

Krispy Kreme tax day special

Need a sweet treat on Tax Day? On Wednesday, April 15, 2026, purchase a dozen Krispy Kreme doughnuts at regular price and receive a second dozen Original Glazed for just the cost of sales tax in your state.

"Finishing your taxes is a big accomplishment, and we think that deserves a reward,” Alison Holder, Krispy Kreme’s Chief Brand and Product Officer, stated in a release. “Our Tax Day offer is a simple, joyful way to celebrate crossing that last thing off your to-do list – and enjoying something sweet once it's finally done.”

For online orders, use code TAXBREAK.

Paris Baguette tax day deal

Are you a rewards member at Paris Baguette? If so, you can get a free pastry with the purchase of any beverage on April 15. That should make Tax Day a little sweeter this year.

Cool off with a drink

Kona Ice tax day

If you want to save your hard-earned money, make sure to stop by Kona Ice on April 15 and celebrate their “National Chill Out Day.” You can get free shaved ice on Tax Day, just visit your nearest Kona Ice location.

Smoothie King

Meanwhile, if you want to cool off, Smoothie King is offering Healthy Rewards members $3 off on purchases worth $15. You can also get $4 off if you spend $20 or more.

STK

Some folks may want to top off Tax Day with a drink. At STK, you can enjoy a signature cocktail all day for just $10.40. The deal is only available at the bar and on the patio at select locations and excludes Boston, Salt Lake City, and Toronto.

Italian and Mexican Food and Pizza

Olive Garden free entree

At Olive Garden, starting at the price point of $14.99, you can order from a select menu of entrees and choose a salad or soup of your choice. The deal also comes with unlimited breadsticks.

The promotion is available until May 4 and comes with a free entree for you to take home, which can be spaghetti with meat sauce, fettuccine alfredo, or five-cheese ziti al forno.

Grimaldi’s tax day promo

Customers at Grimaldi's pizzeria chain can receive $10.40 off any order of $40 or higher with the promotion code TAXDAY26 on Wednesday, April 15.

This offer is valid for dine-in, to-go, and online orders, but it cannot be used at locations in Brooklyn (DUMBO) or the Las Vegas Palazzo.

Unlike last year, Tax Day falls on a Wednesday. So, while Grimaldi's famous half-off glasses and bottles of wine deal (Tuesday Tastings) happens the day before, on April 14, military members and veterans can still enjoy their 15% discount every day of the year, including Tax Day, with a valid ID.

Fazoli’s

At Fazoli’s, customers can get a buy-one-get-one-free deal if they order their classic Baked Spaghetti on April 15. Just use the code TAX26, available at select locations.

QDOBA tax day 'Guac Relief'

QDOBA is leaning into its "free guacamole" policy this year with a Tax Day Guac Relief campaign.

To claim your relief, sign up for QDOBA Rewards and head to www.TaxDayGuacRelief.com to complete a quick survey about a time you were overcharged for guac at another restaurant.

• If you "file" your survey by the 11:59 p.m. ET deadline on Wednesday, April 15, you will unlock a $5 Reward toward any full-sized entrée.
• The credit will be automatically deposited into your Rewards wallet on Monday, April 20, and will be available for redemption through Sunday, April 26.

"At QDOBA, we want guests to enjoy their meal without paying unnecessary charges for guac. That's why we're proud to offer free guac made with fresh Avocados From Mexico® on our create your own entrees. This tax season, we're offering our Rewards Members real Guac Relief they can taste," Jon Burke, Chief Marketing Officer at QDOBA stated in a release.

More savings

White Castle

At White Castle, you can get 15% off your order with the coupon code WC15OFF on April 15.

Hooters

On April 15, participating Hooters locations will be offering select appetizers for $4.15.

These are dine-in specials available at participating locations to help customers celebrate the end of tax season.

BJ’s Restaurant & Brewhouse

Need a break after crunching those numbers? BJ’s Restaurant & Brewhouse is offering a discount for diners on Wednesday, April 15.

Customers can take $10 off any purchase of $40 or more when they dine in or order takeout.

If you’re ordering through the BJ’s app or website, simply use the promo code TAXDAY at checkout to claim your savings.

TurboTax Uber discount

TurboTax is offering a $25 Uber ride credit to, or from, a local TurboTax in-person office for tax filing. The offer, available only in select cities, is valid through April 15, 2026.

To take advantage of the deal, you must book an appointment with a local tax expert via the Uber app or the TurboTax booking page.

Free Tax Filing

Tax Day deals: You can still file your taxes for free

The national deadline to file taxes is here, but don’t fret.

The IRS expects more than 140 million taxpayers to file their taxes by the April 15 deadline; however, you can still request an extension to pay or file if you need extra time. Keep in mind that some states and counties may have an extension to file due to recent natural disasters.

While these sweet deals can make your Tax Day a little better, don’t overlook tax credits and deductions on your return if you are eligible for them.

From family tax breaks for dependents and children to new deductions on car loan interest and overtime pay — follow our coverage to make your 2026 tax season easier.

Finally, you can still save on your tax prep and filing.

• The IRS Free File tool is eligible for taxpayers with an adjusted gross income (AGI) of $89,000 or less for 2025.
• IRS Direct File is no longer available.
• More free filing options are available through partnerships with the IRS.

More About Tax Day

• Tax Tips for Last-Minute Filers
• Nine Tax Deadlines for April 15
• 8 Big IRS Tax Changes to Know Before You File

When the Trump administration pressured IRS employees to take buyouts before Feb. 6 they missed one crucial detail: it’s tax season.

What followed was an abrupt letter directed to the IRS workforce on the eve of the buyout deadline.

Those in “critical filing season positions” in Taxpayer Services, Information Technology, and the Taxpayer Advocate Service were told they are exempt from the buyout plan until May 15, 2025. Anyone who already resigned must work through the extended period.

The IRS headcount as of Nov. 2024 amounted to 100,791 full-time employees, with over half of the workforce belonging to IT and taxpayer services, the National Taxpayer Advocate (NTA) reported.

The news comes after President Donald Trump imposed a government-wide hiring freeze, and offered about 2.3 million full-time federal employees a so-called buyout through a “deferred resignation program” to hollow out the government workforce. Workers who voluntarily step down by the deadline would still collect paychecks and benefits until Sept. 30.

Note: That program is on hold due to a judge's ruling halting the program temporarily right before the Feb. 6 deadline. For more information, see Trump Buyout Program Paused: What It Means for You.

The IRS expects more than 140 million tax returns to be filed by the April 15 deadline, there’s no telling how gravely gutting its workforce would have impacted taxpayers. Jan. 27 marked the official start of the 2025 tax season.

Here’s what we know so far about Trump’s plan to reduce the federal workforce.

Trump buyout offer accepted by thousands of federal employees

Trump’s nationwide purge of the government workforce failed to yield his expected results and nearly backfired if enough IRS workers resigned amid tax season.

At least 40,000 government employees accepted an offer to quit their jobs in exchange for Trump’s so-called buyout before the Feb. 6 deadline, the White House said on Feb. 5.

That figure represents about 2% of more than 2 million federal employees who were given a deferred resignation offer on Jan. 28. No clarity has been given regarding how many were tied to the tax agency.

• Statistically, about 60,000 individuals retire each year across federal jobs — begging the question, were they leaving anyway?
• Key fact: 63% of IRS employees will soon reach retirement age.

Elon Musk’s hand in buyouts: The U.S. Office of Personnel Management (OPM) shocked federal employees with an exit offer titled “Fork in the Road” via an email blast. A subject line familiar to laid-off Twitter employees following Elon Musk’s acquisition of the company, now known as X.

Musk, who has been deemed a “special government employee” tasked by Trump with cutting spending and reshaping the government workforce via the Department of Government Efficiency (DOGE) hoped at least 5% to 10% of the federal workforce would quit.

“Can take the vacation you always wanted, or just watch movies and chill, while receiving your full government pay and benefits,” the DOGE posted on X, trying to entice fed workers to call it quits.

No reassurance for federal employees who stay

Employees who refuse to voluntarily separate from their posts were told via the same email that they must return to in-person work, adhere to high-performance standards, and that the workforce would be comprised of “reliable, loyal, trustworthy” individuals.

Lastly, the memo warned that except for branches of the military, the majority of federal agencies would likely be “downsized through restructurings, realignments, and reductions in force.”

Measures would include furloughs and reclassifications for a “substantial” amount of at-will employees.

Top officials warn: “Don’t be fooled… he’ll stiff you”

As millions of federal employees consider their next steps, federal union leaders and top government officials are warning workers to not take Trump’s buyout.

The American Federation of Government Employees (AFGE), the largest federal employee union representing 800,000 federal and D.C. government workers across 900 local unions cautioned members to not be tricked into resigning, citing concerns of not getting paid.

“There is not yet any evidence the administration can or will uphold its end of the bargain, that Congress will go along with this unilateral massive restructuring, or that appropriated funds can be used this way, among other issues that have been raised,” AFGE said in an email to its members.

“We are encouraging AFGE members NOT to resign or respond to this email until you have received further information and clarification,” top union officials added.

Government officials also criticized the validity of the buyout program.

“There’s no budget line item to pay people who are not showing up for work,” Sen. Tim Kaine (D-VA) said on the Senate floor. “Don’t be fooled. He’s tricked hundreds of people with that offer. If you accept that offer and resign, he’ll stiff you just like he stiffed the contractors.”

• A USA Today analysis found Trump had been involved in more than 3,500 lawsuits over the past three decades, involving normal Americans who claim they were never paid by Trump or his companies.
• Some stiffed individuals included Trump’s lawyers.

Noteworthy: Any fed worker that accepts the Trump administration’s buyout deal would waive the right to legal action, according to a circulated OPM memo.

That’s a risk many workers aren’t willing to take.

Bottom line: Troubling road for IRS

The IRS has a tough road ahead under the Trump administration, from losing billions in funding to a shrinking workforce.

Elon Musk’s apparent hyperfixation with “deleting” the tax agency has already sparked confusion and panic among taxpayers.

This week, the tech billionaire suggested on his social media platform X he had fired 18F, a digital services agency responsible for developing the IRS Direct File system. The IRS clarified that the free tax filing program is still functional across 25 states for the 2025 tax season.

Musk also gained unprecedented access to the U.S. Treasury payment system, which includes sensitive information like your name, Social Security Number, address, and government payments like your tax refund or Social Security payments.

At the same time, Republican lawmakers are pushing a bill to abolish the IRS. All of these changes can impact taxpayers like you, so stay tuned.

Related Content:

• Will Elon Musk’s Treasury Access Derail Your 2025 Tax Refund?
• No New IRS Agents? What Trump’s Federal Hiring Freeze Means for Your Tax Return
• The Fine Print: What Trump Isn’t Telling You About His 2025 Tax Plans
• Trump Buyout Offer Plan Paused by Judge Before Deadline

Even with the uncertainty surrounding the ongoing government shutdown, one thing hasn’t changed: the IRS is still expecting taxpayers who requested more time to file to meet the October 15 federal tax extension deadline.

If you filed for an extension back in April, that means your filing clock officially runs out soon — regardless of the current government funding stalemate.

And that isn’t the only deadline to keep on your radar. October 15 is also the deadline for several other important tax moves that could affect your 2025 return: from excess IRA rules and solo 401(k) contributions to special exceptions for those living in federally declared disaster zones.

Missing one of these deadlines could result in losing valuable deductions or credits, and in some cases, incurring IRS penalties.

Below, we outline six key tax deadlines on October 15 that every filer should be aware of, along with who qualifies for extra time. Let’s dive in.

Related: What Will the Government Shutdown Do to the IRS?

1. October tax extension deadline

Last year's federal tax returns were originally due on April 15, 2025. But if you were granted a tax extension by the IRS, you need to file by Oct. 15, 2025.

Failure to file could result in a penalty of 5% of taxes due for every month (or partial month) that your return is late.

And yes, the IRS can charge interest on penalties, making that amount even higher.

However, the failure-to-file penalty is separate from late payment penalties. This means that your payment for 2024 federal tax returns was due on April 15, 2025, regardless of whether you were granted a federal tax extension for a later date.

So, if you haven’t paid your taxes yet, you should do so as soon as possible. The IRS offers several options for paying taxes, even if you can’t pay the full amount.

Can you avoid a late filing penalty? The IRS won’t impose a failure-to-file penalty if you had no tax liability last year or are due a tax refund. Also, if you lived or had records in a federally declared disaster area, you may have more time to file taxes in your state.

2. IRS tax deadline for disaster areas

Some taxpayers have until Oct. 15 to file federal tax returns even if they didn’t request a filing extension.

This measure, primarily for Los Angeles County residents in California, pushes back various tax deadlines due to wildfires that rapidly escalated into one of the most devastating disasters. At least 180,000 residents were evacuated, and 30 lives were lost.

Taxpayers impacted by the federally declared disaster in California are automatically granted an Oct. 15 federal tax filing extension. The IRS also granted taxpayers eligible for the relief more time to make certain contributions and tax payments.

• 2025 estimated tax payments originally due on January 15, April 15, June 16, and Sept. 15, 2025.
• Quarterly payroll and excise tax returns originally due on Jan. 31, April 30, and July 31, 2025.

The state Franchise Tax Board has also issued a notice that individuals and businesses impacted by the fires have until October 15, 2025, to file and pay state income taxes. For more information, check out the state announcement for disaster relief.

Taxpayers in other states affected by disasters may have until Nov. 3, 2025, or later to meet the federal tax filing deadline. This can happen if you were impacted by a federally declared disaster in Arkansas, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, Texas, Virginia, or West Virginia.

But not all taxpayers may qualify for the automatic tax deadline extensions. You can check the IRS’s disaster relief page for more information.

Note: Affected taxpayers may be able to take a special disaster distribution from their retirement plan or IRA without incurring the 10% early distribution tax. But be sure to check your plan’s specific rules and guidance.

3. State tax deadlines

Most state tax extension deadlines are also due Oct. 15. Some states, such as Alabama and Kansas, grant automatic tax extensions if you request a federal filing extension.

However, not all states do, and the tax extension deadlines for some states can fall after Oct. 15. For example, the extended tax deadline for Louisiana state personal income tax returns isn’t until Nov. 15.

Here are a couple of other exceptions to the October 15 tax deadline:

• The extended tax deadline in New Hampshire is Nov. 15. (Note: Starting in tax year 2025, the state income tax has been eliminated.)
• The extended tax deadline in Virginia is Nov. 1.

Exceptions may apply for deadlines that fall after Oct. 15. For example, some states won’t grant a filing extension if you owe tax. So, it’s important to check with your state’s Department of Revenue before waiting to file your state tax return.

4. SEP IRA contribution deadline: Sole proprietors and C-corps

If you filed for a federal tax extension, Oct. 15 is the deadline to contribute to your employees’ 2024 SEP IRA accounts if you are a sole proprietorship or C-corporation. The contribution deadline for this type of IRA aligns with your federal income tax return deadline, which includes any granted extensions.

Making contributions to this type of IRA could lower your tax liability since you can claim them as a tax deduction on your return; however, it’s important to keep in mind that the IRS only allows you to deduct up to 25% of employee compensation (or the amount of your contributions, whichever is lower).

Note: The extended deadline to contribute to a SEP IRA for your employees was September 15, 2025, if you are an S-corporation or partnership entity.

5. Solo 401(k) contribution deadline

Self-employed taxpayers who requested a federal tax filing extension have until Oct. 15 to contribute to solo 401(k) accounts. Be sure you don’t exceed these contribution limits; however, if you choose to make additional contributions:

• $69,000 or 25% of your net adjusted self-employment income, whichever is less.
• If making catch-up contributions and are 50 or older, $76,500 or 25% of your net adjusted self-employment income, whichever is less.

6. Correct excess IRA contributions

If you accidentally made excess IRA contributions (“ineligible contributions”) last year and were granted a federal tax extension, act quickly!

Since the IRS will tax you 6% on the excess in your account, you’ll want to have withdrawn the excess funds before the Oct. 15 deadline.

Here are the contribution limits for traditional IRAs and Roth IRAs:

• For taxpayers under 50 years old, $7,000 or your taxable compensation for 2024, whichever is less.
• For taxpayers 50 years old or older, $8,000 or your taxable compensation for 2024, whichever is less.

October 15 tax deadline time

You have until October 15 to meet the above deadlines unless you were affected by a federal disaster area. In disaster-affected areas, taxpayers typically have later dates to file their federal returns (see individual IRS notices for more information).

Taxes for all other taxpayers who filed an extension or are otherwise subject to the Oct. 15 deadline are due by midnight. This means you’ll want your return filed by 11:59 that night.

However, any documents you send via regular mail must be postmarked by Oct. 15.

Whether you mail your documents or submit them electronically, it’s not possible to predict exactly how long it will take to complete all your forms, so it’s best to start ahead of time.

Read More

• States With IRS Tax Deadline Extensions This Year
• How to Pay the IRS if You Owe Taxes
• When Are Estimated Tax Payments Due in 2025?
• What Happens if You Missed the Tax Deadline?

Physical mail has become a downer, outside of the occasional and appreciated postcard. There are only two types of mail: the kind that asks you to donate money and the kind that forces you to pay money, such as for a parking ticket or for a medical bill. When the latter type comes in the mail, there is usually a big, bold due date. For retirees, most of the tax planning you should be doing comes with a big, bold due date of December 31, not April 15. Here’s the catch: Most of the custodians have deadlines a few weeks or even a month earlier to ensure that the transactions are completed by December 31.

The end-of-year tax planning we do for our clients typically starts on October 1. Here are five of the December 31 deadlines we are evaluating.

1. Required minimum distributions (RMDs)

This is essentially Uncle Sam sticking his hand out, demanding you pay the tax bill you’ve been deferring for 50 years. RMD rules and ages have become very complicated since the SECURE and SECURE 2.0 Acts. Those acts shifted the starting age from 70½ to 72, 73 or 75, based on your year of birth. You must take your first RMD by December 31 of the year you hit that age and by December 31 of every subsequent year.

First-year exception: In that first year, you are allowed to delay your distribution until April 1 of the following year. For example, if I hit 73 this year, I could delay my distribution until April 1, 2025. Here’s the catch: I’d have to take another by December 31, 2025. Taking two RMDs in one year doesn’t make sense in most situations, unless you see a significant income drop in that year.

2. Roth conversions

The sweet spot for most retirees doing Roth conversions is between their retirement and when they start Social Security and RMDs. It’s like seeing a yellow sale tag on your tax bill. However, unlike Roth (and traditional) IRA “contributions,” Roth “conversions” have a December 31 deadline.

This can be quite a complicated calculation if done properly. You should be considering current vs future income tax brackets, capital gains brackets and Medicare IRMAA (income-related monthly adjustment amount). However, the actual conversion should be fairly easy if you have a traditional IRA and Roth IRA at the same custodian. If the accounts are with different institutions, it’s better to get an early start.

If you’re trying to figure out whether a conversion makes sense for you, you can use a free version of our planning software.

3. Realizing losses and gains

As of this writing, 2024 has been a very good year for the stock market. But for all you stock pickers out there, you likely have some losers. Maybe you bought Nike before it admitted that cutting out many of its retail partners was a bad idea. Or perhaps you bought Amazon before it announced the consumer economy was softening. The silver lining is that you can realize some of those losses. This will help to offset the gains from all those winners you picked.

For retirees, there can be significant opportunity if you are no longer earning an income. Those in the 10% and 12% income tax brackets pay a 0% capital gains rate. For our clients in this situation, we calculate how much they can sell to stay in this bracket.

4.  Charitable giving

With the doubling of the standard deduction under the Tax Cuts and Jobs Act (TCJA), also known as the “Trump tax cuts,” and the TCJA’s caps on state and local income taxes, very few retirees itemize deductions these days. However, that does not mean there isn’t any tax benefit to giving. If you’re 70½, you can realize a tax benefit by giving directly from your IRA. Regardless of age, you can give multiple years at once using a donor-advised fund, to get above the standard deduction. You can also give shares of appreciated stock to avoid capital gains taxes.

Regardless of the strategy you use to give, the deadline for all charitable giving is December 31.

5. Rollovers take advantage of IRA RMD aggregation and QCDs.

This one definitely doesn’t make most of the December 31st lists. However, it is important if you want to simplify your RMDs in retirement. IRAs generally allow for aggregation for RMD purposes. However, employer-sponsored plans do not.

Example: You have $2 million across three IRAs and one 401(k). You calculate your total RMD to be $80,000. You can take the IRA portion from any of the IRAs. However, the portion from the 401(k) must come separately from that account based on that balance. If your money was in four IRAs, you would be able to take just one RMD from any of the accounts. Not only does this simplify the process, but it allows you to defer distributions on accounts where the investments are down that year.

As mentioned in the charitable giving section, you can give money directly from your IRA to charity via a qualified charitable distribution (QCD). You cannot do this from an employer-sponsored plan. If you want to do this in 2025, the plan must be rolled into an IRA by December 31, 2024. You can learn more about QCDs in the article When RMDs Loom Large, QCDs Offer a Gratifying Tax Break.

Related Content

• Don't Wait: Make Your Year-End Money Moves Now
• Before Doing a Roth Conversion, Evaluate These Three Thresholds
• Donor-Advised Funds: A Tax-Savvy Way to Rebalance Your Portfolio
• How to Optimize Your RMDs in Retirement
• The Three Biggest Retirement Planning Gaps I See Among DIYers
• Five Thoughts About the Election From a Financial Planner

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The federal tax filing deadline for the 2024 tax season passed (it was April 15 for most), but unfortunately, Tax Day isn’t the only deadline you need to know during the year. Missing another tax deadline might cause you to lose potential tax savings or result in IRS penalties. 

So, while taxes are likely among the last things you want to consider as summer begins, here is what you need to know about three tax deadlines that fall on Monday, June 17.

1. Estimated tax payments

Making estimated tax payments helps ensure you contribute to your tax liability throughout the year. The U.S. tax system operates on a "pay-as-you-go" basis. So, unlike traditional employees whose taxes are withheld from their paychecks, individuals with untaxed income streams are supposed to estimate and pay taxes quarterly to avoid a large bill at the end of the year.

The second quarterly installment of estimated tax payments is due by June 17. Accurate payments by the quarterly due dates help avoid underpayment penalties. 

• To calculate estimated tax payments, taxpayers must project their annual income, deductions, and credits.
• Form 1040-ES includes worksheets and instructions to assist with this calculation.
• The IRS imposes penalties based on the amount underpaid and the duration of the underpayment.

By keeping up with estimated tax payments, you can distribute their tax liability evenly throughout the year, reducing the risk of an unexpected tax bill when filing your annual return.

If you would like more information, see When Are Estimated Tax Payments Due in 2024?

2. Tax filing deadline for U.S. citizens living abroad

Despite residing outside the United States, U.S. citizens living and working abroad must file annual tax returns with the IRS. This requirement stems from the U.S. tax system being primarily based on citizenship rather than residency. As a result, income earned anywhere in the world must be reported, including wages, dividends, rental income, and other sources.

• Expats living outside the U.S. are granted an automatic two-month extension from the standard Tax Day deadline.
• This year, they have until June 17 to submit their federal income tax returns.

Filing taxes while living abroad can be more complex due to factors like foreign income, tax treaties, and possible double taxation. For example, taxpayers might need to file Form 114, Report of Foreign Bank and Financial Accounts (FBAR). That’s used to report certain foreign financial accounts to the Treasury Department Financial Crimes Enforcement Network (FinCEN).

Despite the complexities, Rachel Martens, managing director specializing in international tax at CBIZ MHM, stresses the importance of U.S. citizens or resident aliens living abroad filing a U.S. income tax return.

“Taxpayers living abroad may qualify for certain tax benefits such as the foreign earned income exclusion, and the foreign tax credit,” Martens explained in a statement to Kiplinger. Additionally, Martens notes that “expanded tax benefits may apply, including, but not limited to the child tax credit, credit for other dependents, or credit for child and dependent care expenses but can only be claimed if a U.S. income tax return is filed.”

• Meeting the June 17 tax deadline is crucial to avoid penalties and interest.
• However, if more time is needed, taxpayers can request an additional extension to file to October 16 by filing Form 4868, by June 17.

Understanding these requirements and deadlines can help avoid unnecessary complications with the IRS.

3. IRS extended tax deadline in states impacted by disasters

Each year, the IRS extends tax deadlines for taxpayers in designated areas impacted by severe storms and natural disasters. The agency announces these tax deadline extensions for various states as disasters occur. 

The new tax deadlines may be different for different states. Also, individual states may or may not conform their state tax deadlines to the extended federal tax deadlines. 

According to a recent IRS announcement, a June 17 tax deadline applies to taxpayers affected by seven disaster declarations. These include the following, but the current list of eligible localities is available on the Tax Relief in Disaster Situations page on IRS.gov. 

Also, for more information on these and other extended deadlines, see Kiplinger’s report, States With IRS Tax Deadline Extensions This Year.

• One county in California: San Diego. (See California Tax Deadline Extension: What You Need to Know).
• One county and two tribal nations in Connecticut: New London County, and the Tribal Nations of Mohegan and Mashantucket Pequot.
• Nine counties in Michigan: Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland and Wayne.
• Seven counties in Maine: Androscoggin, Franklin, Kennebec, Oxford, Penobscot, Piscataquis, and Somerset.
• Nine counties in Tennessee: Cheatham, Davidson, Dickson, Gibson, Montgomery, Robertson, Stewart, Sumner and Weakley.
• Two counties in Washington: Spokane and Whitman.
• Six counties in West Virginia: Boone, Calhoun, Clay, Harrison, Kanawha, and Roane.

Related

• Estimated Tax Payment Due Dates for 2024
• Federal Tax Brackets and Income Tax Rates for 2023 and 2024
• Living Abroad for a While? Shakira Tax Case Shows Taxes Matter Wherever
• Some People in These States Have More Time to File Their Taxes

To celebrate the end of the much-maligned tax season today, Monday, April 15, restaurants are rolling out freebies and specials to lure you in. Offers on Tax Day 2024 range from reasonably priced tax-themed cocktails to free paper shredding. 

Most offers require you to be a member of their rewards programs, and a smaller number of offers involve making an additional purchase. I've provided links to the various loyalty programs to help you access the free or discounted offers without too much fuss. 

Below is a list of top deals on Tax Day 2024:

BJ’s Restaurant & Brewhouse 

Playing off the 1040 Income Tax Return Form, BJ's is offering $10 off any $40 purchase on take-out and delivery orders on April 15, 2024. Use promo code 10OFF40 at checkout. 

California Pizza Kitchen 

Save some dough with the help of this Tax Day promo from California Pizza Kitchen. The eatery is letting you take $10 off any $40 order on Apr. 15 (valid for both dine-in and take-out orders). To redeem this offer, you’ll need to sign up for CPK Rewards. 

Einstein Bros. Bagels 

Every Monday, including April 15, 2024, Einstein Bros. Bagels offers 13 bagels for just $9. The offer is only available to Shmear Society Rewards members. 

Grubhub 

On April 15, 2024, Grubhub is offering $15 off a delivery order of more than $25. Use promo code TAXBREAK at checkout on qualifying orders.

Don't wait too long to place your order. The offer is only available for the first 1,000 redemptions.

Hooters 

You can shake off the Tax Day scaries with a BOGO wings deal and drink specials at Hooters. On Monday, April 15, customers who visit a Hooters of America location and purchase 10 wings will receive 10 wings of any style free. 

There are two drink specials: $4 Dos Equis draft beers and $4 Legendary Margaritas, made with El Jimador 100% blue agave silver tequila and lime sour with orange and lime juices.

Kona Ice

Kona Ice is hosting a “Chill Out Day” with a free cup of shaved ice (regularly $3) on April 15 at participating trucks. 

Noodles & Company 

Noodles & Company is offering $4.15 off any purchase of more than $24 on April 15, 2024. The discount is only available for Noodles Rewards members. 

Office Depot / Office Max 

Office Depot and Office Max are offering free shredding for up to 5 pounds of documents through April 27, 2024. Use the link above to get the coupon needed to redeem this offer.

Paris Baguette 

At Paris Baguette, rewards members will get a free pastry with any beverage purchase on April 15th, 2024. 

Potbelly 

On April 15, Potbelly shops are offering a free Original Sandwich with the purchase of any Original or Big sized Sandwich. All Potbelly fans can redeem the free sandwich at potbelly.com or through the Potbelly app using the promo code BOGO. 

TGI Fridays 

Fridays is giving taxpayers the chance to "deduct some stress" with The Tax Break cocktail. The Tax Break Margarita is made with 1800 Silver Tequila, citrus, agave, strawberry and passionfruit and it comes with a hitchhiker of Hennessy V.S. for $7 through April. You can keep the party going with a $5 Happy Hour Monday through Friday, 3 p.m. to 6 p.m., and 9 p.m. to closing time. TGI Fridays loyalty members can grab a BOGO free entrée through April 30. 

White Castle 

White Castle has two specials. From April 14-16, you can get any combo buy one, get one free (1921 Sliders are BOGO throughout April).

On Monday, April 15, celebrate Tax Day with a coupon for 15% off your online order. Use code WC15OFF, which is valid for April 15 only.  Join their "Craver Nation" loyalty program and get a free Original Slider combo.

Related Content

• What Happens if You Miss the Tax Deadline?
• Tax Tips for Last-Minute Filers
• States With IRS Tax Deadline Extensions This Year

The April 15 federal income tax filing deadline is just around the corner, but it’s not the only one. Several other tax deadlines also fall on Tax Day. Missing some of these deadlines might cause you to lose out on tax savings, and not meeting others can result in financial penalties.

Here is what you need to know about other tax deadlines for April 15, 2026.

(Note: If you live in an affected area of a state with an IRS tax deadline extension due to severe storms and natural disasters, you may have a different federal tax filing due date.)

New: Tax Day Trivia: 6 Surprising Facts About Your 2026 Refund

1. Tax filing deadline 

The 2025 federal income tax return filing deadline is April 15 this year. Failing to file your tax return by midnight on Tax Day could cost you a failure-to-file penalty, which is 5% of unpaid taxes for each month (or partial month) the tax return is late.

If you’ve missed your deadline and have a balance due, the IRS will send you a notice or a letter indicating you must pay the penalty fee.

That being said, if you are owed a tax refund, you don’t have to worry about this penalty. The IRS may also remove or reduce your penalties if you acted in good faith and can prove reasonable cause for being unable to meet your tax obligations on time. Some examples of valid reasons for failing to pay or file on time include:

• Inability to access records
• A natural disaster or civil disturbance
• Death, serious illness, or unavoidable absence of the taxpayer or immediate family
• System issues that delayed electronic filing or payment

Related: Key IRS Changes to Know Before You File

2. Deadline to file for a federal tax extension 

If you don’t think you will make the April 15 filing deadline, make sure you file for a federal tax extension before Tax Day. Requesting an extension before the due date will save you from the failure-to-file penalty and give you until Oct. 15 to file. There are two ways to request a tax extension.

• File Form 4868
• Submit an electronic payment and select Form 4868 as your payment type. (The IRS will automatically recognize this as a tax extension request.)

Regardless of which option you choose, your tax bill is still due by April 15 (more on that below).

Related: How to Get More Time to File Your Tax Return

3. Deadline to pay taxes

April 15 is also the deadline to pay the IRS federal taxes due, whether or not you requested a tax extension. If you haven’t filed yet, you might not know the exact amount you owe. However, the IRS won’t impose a late payment penalty if you pay at least 90% of your tax bill, so you can estimate to some degree. Just remember that your unpaid taxes will continue to accrue interest and penalties until your bill is paid in full.

IRS payment plans: The IRS has several options for taxpayers who can’t pay their taxes in full, including payment plans. It’s important to pay the IRS or make arrangements to pay as soon as possible. Ignoring a tax bill can result in financial penalties, and in severe cases, the IRS could place a federal tax lien on your property, possibly seize certain assets, and garnish your wages.

Note: If you have a household employee, April 15 is also the deadline to pay employment taxes.

Related: How to Pay the IRS if You Owe Taxes

4. 2025 HSA contributions deadline

Although 2025 has ended, eligible taxpayers still have time to contribute to their health savings accounts (HSAs). That means you have until April 15, 2026, to make HSA contributions that apply to the prior tax year. Before you do, you might want to check your past contributions. Exceeding the HSA contribution limit comes with financial penalties.

• For 2025, you can contribute up to $4,300 for self-only coverage
• If you had family coverage, the contribution limit is $8,550
• People 55 and older can contribute an additional $1,000

Employer contributions also count toward contribution limits. So don’t forget to check those too.

5. 2025 IRA contribution deadline

As with the HSA deadline, taxpayers have until Tax Day to contribute to their traditional or Roth IRAs (individual retirement accounts) for 2025 tax purposes. While Roth IRA contributions are considered taxable income, making contributions could qualify some taxpayers for the Saver’s Credit. The credit is nonrefundable and is worth up to 50% of the first $2,000 ($4,000 for joint filers) you contribute to retirement accounts.

Traditional and Roth IRAs also come with contribution limits.

• You can contribute up to $7,000 to your 2025 traditional or Roth IRA
• Taxpayers age 50 and older can contribute up to $8,000
• The total contributions between all your IRAs count toward the annual contribution limit

You also have until April 15 to contribute to your employees’ SEP IRA accounts. Making contributions to this type of IRA may lower your tax liability. You can deduct up to 25% of employee compensation or the amount of your contributions, whichever is less.

6. Correct excess IRA contributions 

If you accidentally contributed too much to your 2025 IRA (known as ineligible contributions), you still have time to correct the mistake. Withdrawing the excess contributions by April 15 will spare you from a 6% penalty. Thankfully, IRA contribution limits are higher for 2025 than they were last year. So it might make sense to apply the excess amount to this tax year instead.

7. Contribute to your solo 401(k) plan

Self-employed taxpayers have until April 15 to contribute to solo 401(k) accounts. Just make sure you don’t exceed these 2025 contribution limits if you choose to make additional contributions:

• $70,000 or 25% of your net adjusted self-employment income, whichever is less
• If you are making catch-up contributions and are 50 or older, you can contribute up to $77,500 or 25% of your net adjusted self-employment income, whichever is less

8. Make your first 2026 estimated tax payment 

If you have taxable income but don’t have income taxes withheld from your paycheck, your first estimated tax payment for the 2026 tax year is due on April 15. Underpaying or failing to make the payment altogether could result in financial penalties. You can use Form 1040-ES to calculate your estimated tax payment.

Remember, there are two other estimated tax payments due in 2026. However, you can skip those if you pay all your 2026 estimated taxes by the April 15 deadline.

9. State tax deadlines

Most state income taxes are also due on April 15 this year. However, some states have later filing dates.

Additionally, some states granted tax extensions to eligible residents following natural disasters. For example, residents of impacted areas from Tennessee storms are eligible for an extended tax deadline of May 22, 2026.

If you’ve lost your tax records during a natural disaster, you must recover your tax documents as soon as possible to be able to claim relief. Taxpayers should also check with their state's revenue department to see when taxes are due, since states can impose late filing and payment penalties.

For more information, see Kiplinger's report on states with IRS tax deadline extensions.

Read More

• Tax Tips for Last-Minute Filers
• When Are Estimated Tax Payments Due?
• When Are Taxes Due in 2026? Tax Deadlines by Month

The IRS has granted Maine tax relief to areas of the state impacted by severe storms late last year. Affected taxpayers now have extended tax deadlines of June 17, 2024, to file certain tax returns and make tax payments. The tax deadline extension for Maine follows tax relief for Connecticut and Rhode Island, announced by the IRS earlier this year.

On Dec. 17, 2023, severe storms and high winds struck areas of Maine, resulting in more than half a million power outages and more than $20 million in public infrastructure damage. President Biden declared affected Maine counties as federal disaster areas last month.

“The President’s approval unlocks federal relief funds that will help hard-hit Maine communities and families move forward from last month’s storm,” Gov. Janet Mills said following the declaration.

Maine tax relief  

Following President Biden’s declaration, the IRS announced Maine taxpayers affected by the severe storms now have until June 17, 2024, to file certain tax returns and make tax payments that were originally due from Dec. 17, 2023, through June 17, 2024. These extensions include (but might not be limited to) the following:

• Individual income tax returns and payments normally due on April 15, 2024.
• Quarterly estimated income tax payments normally due on Jan. 16 and April 15, 2024.
• Quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2024.
• Calendar-year partnership and S corporation returns normally due on March 15, 2024.
• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.
• Calendar-year tax-exempt organization returns normally due on May 15, 2024.

HSA and IRA contribution deadlines 

Qualifying taxpayers also have until June 17, 2024, to contribute  to their 2023 health savings accounts (HSAs) and individual retirement accounts (IRAs). Taxpayers should check 2023 IRA and HSA contribution limits to avoid excess contributions, which can lead to tax penalties.

Areas affected by Maine storms 

Taxpayers who live or have businesses in the below areas of Maine currently qualify for IRS tax relief. However, additional counties may be added to this list in the future. Information regarding the latest federally declared disaster areas can be found on the IRS’ disaster relief webpage.

• Androscoggin and Franklin counties
• Hancock, Kennebec, and Oxford counties
• Penobscot and Piscataquis counties
• Somerset, Waldo, and Washington counties

The IRS will grant tax relief to qualified taxpayers automatically. However, taxpayers who live outside of the areas but qualify for relief (such as those with documents located in the above parishes) should contact the IRS at 866-562-5227.

Is the Maine tax deadline extended 

Maine has announced an extended state tax deadline. Affected taxpayers now also have until June 17, 2024 to meet various state tax obligations originally due between December 17, 2023 and April 17, 2024. The state tax relief does not apply to sales or withholding taxes. For more information, see the alert issued by the Maine Department of Revenue.

Due to Patriot's Day, the state tax deadline for Maine residents who don't qualify for relief is April 17, 2024. 

Related

• When Are Taxes Due in 2024?
• Tax Laws Can Help Victims of Federally Declared Disasters
• Tax Season is Here: Seven Big Changes to Know Before You File

The IRS has granted federal tax relief for taxpayers impacted by severe storms in parts of Connecticut and Rhode Island. The relief includes extensions for various tax payment and filing deadlines. Individuals and businesses affected by the severe storms now have until June 17 to meet certain tax obligations. 

Tornadoes, severe storms, and flooding hit Providence County, Rhode Island from Sept. 10 to Sept. 13, 2023. Providence County was declared a disaster area earlier this month, nearly four months after the severe storms. As a result, impacted residents can now finally apply for grants from FEMA to assist with temporary housing and home repairs. 

The disaster declaration also means that Rhode Island businesses and residents impacted by the storm have until June 17, 2024, to meet various tax filing and payment deadlines originally due between Sept 10, 2023, and June 17, 2024.

Areas of Connecticut impacted by severe storms have also been declared disaster areas. Severe storms and flooding that began on Jan. 10, 2024, caused a partial dam break, which left thousands of residents without power. Affected businesses and residents in parts of Connecticut now have until June 17, 2024, to meet various tax deadlines originally due between Jan. 10, 2024, and June 17, 2024.

Rhode Island and Connecticut tax deadline extensions  

As a result of the severe storms, the following federal tax deadlines for affected taxpayers in Rhode Island and Connecticut have been extended until June 17, 2024.

• Individual income tax returns and payments normally due on April 15, 2024
• 2023 quarterly estimated income tax payments normally due on Jan. 16, 2024, and estimated tax payments normally due on April 15, 2024
• Quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2024
• Calendar-year partnership and S corporation returns normally due on March 15, 2024
• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024
• Calendar-year tax-exempt organization returns normally due on May 15, 2024

Eligible Rhode Island taxpayers also have until June 17, 2024, to meet the following deadlines.

• 2023 estimated income tax payments normally due on Sept. 15, 2023
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2023

Rhode Island and Connecticut storm-affected areas 

In Rhode Island, only Providence County taxpayers are currently eligible for federal tax relief. Connecticut taxpayers who live or have businesses in New London County, including the Mohegan Tribal Nation and Mashantucket Pequot Tribal Nation currently qualify for the IRS tax deadline extensions. However, additional areas might be added in the future. The IRS’s disaster relief page contains the most up-to-date list of qualifying counties.

What if you live outside of the designated disaster areas? If you live outside the federally designated disaster areas, but have records in an affected area that impact your ability to file your taxes, you should contact the IRS at 866-562-5227 to see if you qualify for relief.

Extended 2023 HSA contribution deadline

Qualifying Rhode Island and Connecticut taxpayers in federally declared disaster areas now have until June 17, 2024, to make contributions to 2023 health savings accounts (HSAs). Contributions for the 2023 tax year would normally have to be made by April 15, 2024. Just make sure to check the 2023 HSA contribution limits that apply to you.

Are Rhode Island and Connecticut state tax deadlines extended? 

Connecticut has extended tax filing and payment deadlines until June 17, 2024. However, no state tax deadline extension has been announced for Rhode Island. Taxpayers affected by severe storms can reach out to the Rhode Island Department of Revenue or the Connecticut Department of Revenue for more information.

Related Content

• HSA Contribution Limits for 2023
• Tax Season is Here: Big IRS Tax Changes to Know Before You File
• Free IRS Direct File Pilot Program: Who's Eligible?

Following severe tornadoes and storms that began on Dec. 9, the IRS has announced a Tennessee tax deadline extension for affected taxpayers. Eligible individuals and businesses now have an extended tax deadline of June 17, 2024. The extended deadline applies to various tax filings and payments originally due between Dec. 9, 2023 and June 17, 2024. 

Tennessee tax deadline extension 

The Tennessee tax relief extends various tax filing and payment deadlines that occurred from Dec. 9, 2023, through June 17, 2024. The new June 17 tax deadline applies to the following:

• Individual federal income tax returns and payments normally due on April 15, 2024. 
• Quarterly estimated income tax payments normally due on Jan. 16 and April 15, 2024.
• Quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2024.
• Calendar-year partnership and S corporation returns normally due on March 15, 2024.
• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.
• Calendar-year tax-exempt organization returns normally due on May 15, 2024.

Eligible taxpayers will be granted tax relief automatically and do not need to take any additional steps. Additional tax relief may be available. Tennessee taxpayers can visit the IRS’ disaster relief webpage for more information.

Tennessee tornado-affected areas

Tornadoes and severe storms hit a widespread area of Tennessee during December, causing at least six fatalities and damage to more than 1,000 homes. As a result, four Tennessee counties have been declared federal disaster areas. The new June 17 tax deadline currently applies to Davidson, Dickson, Montgomery, and Sumner counties. 

Taxpayers who reside or have businesses in these areas automatically qualify for relief. The IRS provides tax relief for any area designated by the Federal Emergency Management Agency (FEMA), and tax relief will be extended to any additional areas of Tennessee that are declared in the future. Taxpayers can visit the IRS disaster relief page to view the most recently declared disaster areas.

If you live outside of the disaster area: Some taxpayers may still qualify for relief, even if they do not live or have businesses in the designated Tennessee counties declared by FEMA (for example, if you had tax records in one of the counties). If you think you qualify for relief but live outside the disaster area, you can contact the IRS at 1-866-562-5227. 

IRA and HSA contribution deadline extension

The deadline to contribute to 2023 health savings accounts (HSAs) and individual retirement accounts (IRAs) has also been extended to June 17, 2024. Eligible taxpayers can contribute to 2023 accounts as long as they don’t exceed 2023 contribution limits. The IRA contribution limit for 2023 is $6,500. The 2023 HSA contribution limit is $3,850 for individuals and $7,750 for families.

Is the Tennessee state tax deadline extended?

Tennessee has not announced a tax deadline extension following the severe storms that began on Dec. 9. However, state  tax relief may be announced in the future. This story will be updated as new information becomes available.

Getting the right tax advice and tips is vital in the complex tax world we live in. The Kiplinger Tax Letter helps you stay right on the money with the latest news and forecasts, with insight from our highly experienced team (Get a free issue of The Kiplinger Tax Letter or subscribe). You can only get the full array of advice by subscribing to the Tax Letter, but we will regularly feature snippets from it online, and here is one of those samples…

Teachers' tax deduction deadline
Teachers have three more weeks to max out a federal tax deduction for 2023. They can deduct up to $300 for the cost of their unreimbursed expenses. Teachers don’t have to itemize to claim this write-off. It is an above-the-line deduction claimed on Form 1040, Schedule 1, line 11. 

The cap is $600 for spouses who are both teachers and file jointly. Homeschooling parents don’t get the break. It’s only for K-12 educators who work 900-plus hours during a school year in an elementary or secondary school. The deduction for 2024 is also limited to $300. 

Tax breaks to expand K-12 school choice
Many Republican lawmakers want to expand school choice for K-12 students. Providing tax breaks might be one way to achieve this goal. For example, a Republican-backed House bill would give nonrefundable tax credits to individuals and corporations that donate cash to qualifying organizations set up for the purpose of providing scholarships for elementary and secondary education. 

The credit would be capped for individuals at the greater of 10% of adjusted gross income or $5,000, with any excess amount carried forward for five years. The credit cap for corporations is 5% of taxable income. 

Nearly half the states already have tax credit scholarship programs, which give taxpayers credits to offset state taxes for donating to participating groups that endow scholarships to attend private school for primary and secondary education. 

In 2020, the Supreme Court ruled that a state tax credit scholarship program can be used for religious schools education. The case addressed a scholarship program created by the state of Montana to help children attend private school. The state gave a tax credit to taxpayers who donated to organizations that participated in the program. Relying on the Montana constitution, which bas the funding of religious education by the state, the Montana Dept. of Revenue issued a rule that provided the scholarships cannot be used at religious schools in the state. In a closely divided opinion, the Supreme Court decided that the state's ban on religious schools participating in the program was unconstitutional. 

This first appeared in The Kiplinger Tax Letter. It helps you navigate the complex world of tax by keeping you up-to-date on new and pending changes in tax laws, providing tips to lower your business and personal taxes, and forecasting what the White House and Congress might do with taxes. Get a free issue of The Kiplinger Tax Letter or subscribe.

Making the maximum contributions to your retirement plan can increase your retirement savings and lower your taxes. But the end of the year means the 2024 401(k) contribution deadline arrived.

Here is some information to help you take advantage of tax breaks associated with your retirement savings plan — including the 2024 401(k) contribution limits (and new 401(k) contribution limits for 2025.)

What was the last day to contribute to a 401(k) for 2024?

The deadline to contribute to an employer-sponsored 401(k) plan for 2024 was Dec. 31.

Can I contribute to a 401(k) after December 31? A common question is whether you can contribute to your retirement savings plan after Dec. 31. The answer is that because 401(k) contributions are made through payroll deductions, Dec. 31 is the deadline.

However, if you have an IRA, you can contribute to that account up until the 2024 tax year filing deadline, which is April 15, 2024. The IRA contribution limit is $7,000, and the $1,000 catch-up contribution — if you are 50 or older — takes the total maximum contribution to $8,000.

IRS 401(k) limit 2024

• The 401(k) contribution limit for this year is $23,000. If you are 50 and older, you can contribute an additional $7,500 catch-up contribution.
• In that case, your total max 401(k) contribution for the 2024 tax year would be $30,500.

The 401(k) contribution deadlines and limits also apply to Roth 401(k) and 403(b) retirement plans. This year's contribution limits for 457 plans are similar, but there is a separate catch-up contribution limit of $7,500 if you’re nearing retirement age.

FAQs

How much can an employer contribute to a solo 401(k)?

If you contribute to your solo 401(k) as an employee, you can contribute up to $23,000 for 2024. The total solo 401(k) contribution limit, if you’re 50 or older, is $30,500.

Nonelective contributions to a solo 401(k) made as an employer are generally limited to 25% of compensation, according to the IRS. If you’re self-employed, your total contributions can’t exceed your earned income for the 2024 tax year.

There’s also an overall contribution limit of $69,000 for 2024. So, total contributions to a participant's account (not including catch-up contributions for those 50 and older) cannot exceed that amount.

When do RMDs start?

A required minimum distribution (RMD) is the minimum amount you must withdraw from your retirement savings account each year if you are at least 73.

Keep in mind that your RMDs generally must be taken by Dec. 31. There are some exceptions for inherited IRAs and Roth IRAs, and recent RMD rule delays to know.

How are RMDs calculated? RMDs are calculated by dividing the value of your retirement account by a distribution period based on your age in the year you take the distribution. Remember: RMDs are taxed as ordinary income and can impact your federal income tax bracket.

Related: December 31 RMD Deadline: What to Know

How much is the Saver’s Credit 2024?

Depending on your income, you may qualify for the Saver’s Credit, which is a tax break designed to encourage taxpayers with lower and middle incomes to save for retirement.

For 2024, if your modified adjusted gross income (MAGI) is $38,250 or less, you may be eligible to claim up to $1,000 for the Saver’s Credit. If you’re married and filing jointly, your modified adjusted gross income must be $76,500 or less to claim the up to $2,000 credit.

The Saver’s Credit is based on a percentage (i.e., 10%, 20%, or 50%) of the first $2,000 (single filers) or $4,000 (married filing jointly) that you contribute to your 401(k), IRA, or Roth IRA retirement account. But rollover contributions won’t count toward the saver’s credit calculation.

Related: Savers Credit: Do You Qualify?

Looking ahead: What are the 401(k) contribution limits for 2025?

The IRS has announced inflation adjustments for the 2025 401(k) contribution limits and the IRA contribution limit for 2025. The 401(k) contribution limit for next year (returns you'll file in early 2026) increased to $23,000.

That 2025 401(k) contribution limit, which is $500 more than it was for the previous tax year, applies to employees who participate in 401(k) plans, most 457 plans, and the federal government Thrift Savings Plan. The catch-up contribution limit for those age 50 or older participating in those plans will remain 7,500 for 2025.

Note: However, due to a new provision in the SECURE 2.0 Act, those ages 60 and 63 will be eligible to contribute up to $11,250 as a "super" catch-up contribution.

Will the IRA contribution limit increase for 2025? The IRA contribution limit for 2024 was up by $500 from 2023. So, for 2024, you can contribute up to $7,000 to your IRA in 2024 and 2025. If you’re 50 or older, the IRA catch-up contribution limit isn’t adjusted for inflation so, it will stay at $1,000 for 2025.

Related: IRA and 401(k) Contribution Limits Rise Again for 2024

Bottom Line

401(k) contribution deadline: What you can do

Don’t wait for the year-end 401(k) contribution deadline to sit down and evaluate your savings for retirement. Instead, check your retirement savings account now to see if you’re on track to make your max 401(k) contributions by Dec. 31.

The IRS has announced tax relief for taxpayers impacted by the Oct. 7 terrorist attacks against the State of Israel. The announcement comes only three days before the Oct. 16 tax deadline for those who requested a federal filing extension for last year’s taxes. Eligible taxpayers now have until Oct. 7, 2024, to file these returns. The IRS has also extended certain other tax filing and payment deadlines. 

On Saturday, Oct. 7, the State of Israel was attacked by Hamas. The attacks have resulted in more than 1,300 reported deaths, including at least 14 Americans. More than 100 people, including 17 Americans, remain missing as of Thursday.

During a briefing Tuesday, President Biden said the United States "will make sure Israel has what it needs to take care of its citizens, defend itself, and respond to this attack." 

State of Israel tax relief 

For its part, the IRS announced that eligible taxpayers now have until Oct. 7, 2024, to file certain tax returns and make certain tax payments that were originally due between Oct. 7, 2023, and Oct. 7, 2024. 

These extensions include (but might not be limited to) the following:

• Taxpayers with an original tax filing extension of Oct. 16, 2023 now have until Oct. 7, 2024 to file 2022 federal tax returns. (Taxes owed for 2022 returns were due April 18, so the tax relief does not extend these payments.)
• Individual and business tax returns and payments originally due on March 15 and April 15, 2024 are now due Oct. 7, 2024.
• Quarterly estimated income tax payments originally due on Jan. 16, April 15, June 17 and Sept. 16, 2024 are now due Oct. 7, 2024.
• Taxpayers now have until Oct. 7, 2024 to contribute to retirement accounts.

Who qualifies for tax relief? 

According to the IRS, the following taxpayers qualify for tax relief. However, additional relief may be announced in the future.

• Individuals whose principal residence or business entity or sole proprietor whose principal place of business is in Israel, the West Bank, or Gaza
• Any individual, business or sole proprietor, or estate or trust whose books, records, or tax preparer is located in the covered area
• Anyone killed, injured, or taken hostage due to the terrorist attacks
• Those affiliated with a recognized government or philanthropic organization and who are assisting in the covered area

The IRS will automatically grant relief to eligible taxpayers. However, if you qualify for relief but live outside the disaster area, you can contact the IRS disaster hotline at 1-866-562-5227.

Some taxpayers impacted by the terrorist attacks may receive a late filing or payment notice. This can happen if the IRS doesn't have a record of you living in the affected area (for example, if you recently moved). In this case, taxpayers should call the number on the notice for relief.

The Oct. 16 federal tax extension deadline has passed, but it’s not the only one. Several other tax deadlines fall on the same day. Missing one of these deadlines might cause you to miss out on tax savings. Missing others could result in financial penalties. 

Here’s what you need to know about every tax deadline for Oct. 16.

Federal tax deadline extensions 

Federal tax returns for 2022 were originally due April 18. However, if you were granted a tax extension by the IRS, you needed to file by Oct.16. Failing to file by the deadline could result in a failure-to-file penalty of 5% of taxes due for every month (or partial month) that your return is late.  

The failure-to-file penalty is separate from late payment penalties. Payments for 2022 federal tax returns were due on April 18, whether or not you were granted a federal tax extension. So, if you haven’t paid your taxes yet, you should as soon as possible. The IRS offers several options for paying taxes, even if you can’t pay the full amount.

Can you avoid a late filing penalty? The IRS won’t impose a failure-to-file penalty if you had no tax liability for last year or are due a tax refund. Also, if you lived or had records in a federally declared disaster area, your tax filing extension deadline may be after Oct. 16.

Federal tax extensions for disaster areas 

Some taxpayers have until Oct. 16 to file federal tax returns, even if they didn’t request a filing extension. Taxpayers impacted by federally declared disasters in parts of Georgia and Alabama were automatically granted an Oct. 16 federal tax filing extension. The IRS also granted taxpayers eligible for the relief more time to make certain contributions and tax payments.

• 2023 estimated tax payments originally due on April 18, June 15 and Sept. 15 are due Oct. 16.
• Affected taxpayers have until Oct. 16 to make contributions to HSAs and IRAs.
• Quarterly payroll and excise tax returns originally due on Jan. 31, April 30 and July 31 are due Oct. 16.

Not all taxpayers in Georgia and Alabama qualify for the automatic Oct. 16 tax deadline extensions. You can check the IRS’ disaster relief page for more information. 

(Note: The IRS initially extended the tax deadline for taxpayers in parts of California to Oct. 16, but this deadline has been postponed to Nov. 16.)

State tax deadline extensions 

Most state tax extension deadlines are also due Oct. 16. Some states, such as Alabama and Kansas, grant automatic tax extensions if you request a federal filing extension. 

However, not all states do, and the tax extension deadlines for some states can fall after Oct. 16. For example, the extended tax deadline for Louisiana state personal income tax returns isn’t until Nov. 15. 

Here are a few other exceptions to the October 16 tax deadline:

• The extended tax deadline in New Hampshire is Nov. 15.
• The extended tax deadline in Virginia is Nov. 1.

Exceptions may apply for deadlines that fall after Oct. 16. For example, some states won’t grant a filing extension if you owe tax. So, it’s important to check with your state’s Department of Revenue before waiting to file your state tax return. 

SEP IRA contribution deadline 

If you filed for a federal tax extension, you have until Oct.16 to make contributions to your employee’s 2022 SEP IRA accounts. That’s because the contribution deadline for this type of IRA aligns with your federal income tax return deadline, including any granted extensions.

Making contributions to this type of IRA may lower your tax liability since you can claim them as a tax deduction on your return. However, it’s important to keep in mind that the IRS only allows you to deduct up to 25% of employee compensation or the amount of your contributions, whichever is less.

Solo 401(k) contribution deadline 

Self-employed taxpayers who requested a federal tax filing extension have until Oct. 16 to contribute to solo 401(k) accounts. Just make sure you don’t exceed these contribution limits if you choose to make additional contributions:

• $61,000 or 25% of your net adjusted self-employment income, whichever is less
• If making catch-up contributions and are 50 or older, $67,500 or 25% of your net adjusted self-employment income, whichever is less

Correct excess IRA contributions 

If you accidentally made excess IRA contributions (also known as ineligible contributions) last year, and you were granted a federal tax extension, you still have time to correct the mistake (if you act quickly). And since the IRS will tax you 6% on the excess in your account, you’ll want to withdraw the excess funds before the Oct. 16 deadline. 

Here are the 2022 contribution limits for traditional IRAs and Roth IRAs.

• For taxpayers less than 50 years, $6,000 or your taxable compensation for 2022, whichever is less
• For taxpayers 50 and older, $7,000 or your taxable compensation for 2022, whichever is less

Tax deadline time

You have all day today (October 16) to meet the above-mentioned tax deadlines since taxes aren't due until the end of the day (midnight). That means you'll want to have your return filed by 11:59 tonight. However, any documents you send via regular mail must be postmarked by today, which means you must visit your post office before it closes. 

Regardless of whether you are mailing documents or submitting them electronically, it's not possible to predict exactly how long it will take to complete all your forms, so the sooner you file (or make or correct contributions), the better.

Related Content

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• When Are Estimated Tax Payments Due in 2023?
• How to Pay the IRS if You Owe Taxes

The IRS has granted Louisiana tax relief to areas of the state impacted by seawater intrusion. Affected taxpayers now have extended tax deadlines of Feb. 15, 2024, to file certain tax returns and make tax payments. The tax deadline extension for Louisiana follows tax relief for several other states this year, including tax extensions for Maine and Massachusetts.

On Sept. 26, President Joe Biden approved the request by Louisiana Gov. John Bel Edwards to declare seawater intrusion of the Mississippi River as a Federally Declared Emergency. Seawater intrusion threatens residents’ drinking water supply by making it unsafe to consume. 

“I’m grateful to the Biden administration for making this request a priority and responding quickly to help the people of South Louisiana," Gov. Edwards said in a press release following the declaration.

Louisiana tax relief 

Following President Biden’s declaration, the IRS announced Louisiana taxpayers affected by the seawater intrusion now have until Feb. 15, 2024, to file certain tax returns and make tax payments that were originally due from Sept. 20, 2023, to Feb. 15, 2024. These extensions include (but might not be limited to) the following:

• Quarterly estimated tax payments originally due Jan. 16, 2024, are now due Feb. 15, 2024.
• Quarterly payroll and excise tax returns that were originally due on Oct. 31, 2023, and Jan. 31, 2024, are now due on Feb. 15, 2024. 
• Corporate tax returns with original filing extensions of Oct. 16, 2023, and Nov. 15, 2023, are now due February 15, 2024.
• Individuals who were granted original tax filing extensions of Oct. 16, 2023, now have until Feb. 15, 2024, to file 2022 tax returns.

Note: Because tax payments tied to 2022 tax returns were due on April 18, 2023, the extended tax deadlines don't apply to these payments.

Areas affected by Louisiana saltwater intrusion 

Taxpayers who live or have businesses in the below areas of Louisiana currently qualify for IRS tax relief. However, additional parishes may be added to this list in the future. Information regarding the latest federally declared disaster areas can be found on the IRS’ disaster relief webpage.

• Jefferson Parish
• Orleans Parish
• Plaquemines Parish
• Bernard Parish

The IRS will grant tax relief to qualified taxpayers automatically. However, taxpayers who live outside of the areas but qualify for relief (such as those with documents located in the above parishes) should contact the IRS at 866-562-5227.

Some taxpayers impacted by the saltwater intrusion may receive a late filing or payment notice. This can happen if the IRS doesn't have a record of you living in the affected area (for example, if you recently moved). In this case, taxpayers should call the number provided on the notice for relief.

Is the Louisiana tax deadline extended?

Louisiana hasn't announced tax deadline extensions relating to the seawater intrusion. However, the state usually grants tax filing extensions to taxpayers automatically when granted one by the IRS. Taxpayers should contact the Louisiana Department of Revenue to see if an automatic extension applies or if local tax relief is available.

Related Content

• Tax Tips for National Preparedness Month
• Louisiana State Tax Guide
• Create a Financial Plan for Natural Disasters

The IRS has granted tax relief for Maine and Massachusetts following Hurricane Lee. This relief includes extended deadlines for certain tax filing and payment due dates. The tax deadline extensions for Maine and Massachusetts follow storm-related extensions in several other states, including Florida and South Carolina tax deadline extensions following Tropical Storm Idalia.

Hurricane Lee hit Maine on Sept.16, bringing with it heavy rain and wind gusts reaching over 80 mph in some areas. The storm in Maine resulted in at least one death. The effects of Hurricane Lee were not as severe in Massachusetts. However, areas of the region still experienced wind gusts of up to 65 mph, and 3,000 homes and businesses were left without power.

IRS tax relief for Maine and Massachusetts

Following Hurricane Lee, the IRS announced that affected taxpayers in Maine and Massachusetts now have until Feb. 15, 2024, to file certain tax returns and make tax payments that were originally due between Sept. 15, 2023, and Feb. 15, 2024. The extensions include (but may not be limited to) the following:

• Quarterly estimated tax payments originally due on Sept. 15, 2023, and Jan. 16, 2024, are now due Feb. 15, 2024.
• Quarterly payroll and excise tax returns originally due Oct. 31 are now due Feb. 15.
• 2022 tax returns for individuals and corporations originally granted a tax extension of Oct. 16 are now due Feb. 15.

Because taxes owed for 2022 tax returns were due on April 18, the deadline extension does not apply to these payments, even if you were granted a filing extension.

Areas affected by Hurricane Lee 

Although Hurricane Lee had the greatest impact on coastal areas, such as Cape Cod and Nantucket, taxpayers in all areas of Maine and Massachusetts qualify for tax relief. According to the IRS, taxpayers in these areas will receive extensions automatically. 

However, taxpayers who live outside of the areas but qualify for relief (such as those with documents located in Maine and Massachusetts) should contact the IRS at  866-562-5227.

Some taxpayers impacted by the storm may receive a late filing or payment notice. This can happen if the IRS does not have a record of you living in the affected area (for example, if you recently moved). In this case, taxpayers should call the number provided on the notice for relief.

Are Massachusetts and Maine state tax deadlines extended?

Maine and Massachusetts have not announced tax deadline extensions following Hurricane Lee. However, the tax departments for both areas grant automatic filing extensions for taxpayers who receive extensions from the IRS. 

Taxpayers should contact their state tax department to see if the automatic extension applies to relief granted due to Hurricane Lee or if local tax relief is available.

Related Content

• Tax Tips for National Preparedness Month
• How to Protect Your Home from Natural Disasters with the Right Insurance
• How to Prepare For a Hurricane and Other Natural Disasters

Estimated taxes are an unavoidable fact of life for many taxpayers. That is because the U.S. has a pay-as-you-go system, which means the IRS expects you to pay your taxes as you receive or earn taxable income. 

• To comply with this system, people who don't have taxes withheld from a traditional paycheck or other income because they are retired or self-employed for example, usually make quarterly estimated tax payments. 
• The amount of the payments is based on estimates of your tax liability for the year, determined largely by your taxable income. 

When it comes to estimated taxes, a main concern is knowing when to make the payments. Generally, payments are due in January, April, June, and September. The next upcoming date when estimated taxes are due is Tax Day, April 15th. If you miss an estimated tax payment deadline you may have to pay a penalty.

However, it's worth noting that due to severe storms and natural disasters affecting many states this year and last, the IRS has extended several tax deadlines. These extensions are to provide tax relief for taxpayers and businesses who have been directly impacted. Here’s what you need to know.

More from Kiplinger | When Estimated Tax Payments Are Due

States with IRS estimated tax deadline extensions 

If you live or have a business in a directly impacted IRS-identified disaster area in one of the following states, you now have more time to make certain estimated tax payments. (The applicable deadlines vary by state.)

And, if you're unsure whether you or your business should wait to make an estimated tax payment, consult with a trusted tax professional.

Alabama, California, and Georgia

The October 16 extended tax deadline for those directly impacted by declared disasters in California, Georgia, and Alabama also applies to 2023 estimated tax payments. (As mentioned, those would normally be due on April 18, June 15, and Sept. 15.) 

• Quarterly payroll and excise tax deadlines for businesses are also extended from those typically due on Jan. 31, April 30, and July 31.
• The IRS tax deadline extension of Oct. 16, 2023, for people in California, Georgia, and Alabama storm-impacted disaster areas also applies to fourth quarter 2022 estimated payments. 

If you had an estimated tax payment due on Jan. 17, 2023, the IRS says you could skip that payment and include it with your tax return when you file on or before October 16.

More from Kiplinger |  California Tax Deadline Extension: What You Should Know

Georgia Idalia tax deadline extension

Update: If you live in an area of Georgia impacted by Hurricane Idalia, the IRS has recently announced that you have more time to file certain returns and make certain payments. 

If you live or have a business in one of the following 28 counties, the newer Feb. 15, 2024, tax deadline extension applies to returns and taxes originally due from Aug. 30, 2023, to before Feb. 15: 2024. (The IRS could add more designated disaster areas.)

Appling, Atkinson, Bacon, Berrien, Brantley, Brooks, Bulloch, Camden, Candler, Charlton, Clinch, Coffee, Colquitt, Cook, Echols, Emanuel, Glynn, Jeff Davis, Jenkins, Lanier, Lowndes, Pierce, Screven, Tattnall, Thomas, Tift, Ware, and Wayne counties.

This includes 2022 individual income tax returns due on Oct. 16, 2023, and quarterly estimated tax payments, normally due on Sept. 15, 2023, and Jan. 16, 2024.

Florida

The IRS extended the tax deadline to Feb. 15, 2024, for Floridians directly impacted by Hurricane Idalia. That deadline also applies to quarterly estimated tax payments usually due on Sept. 15, 2023, and Jan. 16, 2024. 

• Additionally, the IRS says that businesses in Florida with an original or extended due date also qualify for the Feb. 15, 2024 deadline. 
• So, calendar-year partnerships or S corporations whose 2022 extensions expire Oct. 16, 2023, and Sept. 15. 2023, respectively, qualify for the Feb 15, 2024 extension.

The IRS won’t assess penalties on payroll and excise tax deposits due on or after Aug. 27, 2023, and before Sept. 11, 2023, as long as the tax deposits are made by Sept. 11, 2023 (that’s today).

Hawaii

The IRS postponed various tax filing and payment deadlines for Hawaiians directly impacted by the devastating wildfires. The relief applies to deadlines from Aug. 8, 2023, through Feb. 15, 2024. Affected individuals and businesses have until Feb. 15, 2024, to file certain federal returns and pay any taxes that were originally due during that period.

The Feb. 15, 2024, deadline for Hawaii disaster areas applies to:

• Quarterly estimated income tax payments usually due on Sept. 15, 2023, and Jan. 16, 2024.
• Quarterly payroll and excise tax returns usually due on Oct. 31, 2023, and Jan. 31, 2024.
• Calendar-year partnerships and S corporations whose 2022 extensions run out on Sept. 15, 2023.
• Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023.
• Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.

South Carolina

The tax deadline relief from the IRS for South Carolina postpones various tax filing and payment deadlines from Aug. 29, 2023, through Feb. 15, 2024. As a result, South Carolina individuals and businesses directly impacted by Hurricane Idalia have until Feb. 15, 2024, to file returns and pay taxes originally due during that period.

The Feb. 15, 2024, deadline for South Carolina applies to:

• Quarterly estimated income tax payments typically due on Sept. 15, 2023, and Jan. 16, 2024.
• Quarterly payroll and excise tax returns usually due on Oct. 31, 2023, and Jan. 31, 2024.
• Calendar-year partnerships and S corporations whose 2022 extensions run out on Sept. 15, 2023.
• Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023.
• Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.

Also, the IRS will waive penalties for failing to make payroll and excise tax deposits due on or after Aug. 29, 2023, and before Sept. 13, 2023, as long as the deposits are made by Sept. 13, 2023.

What to do about estimated tax penalties

What if you live or have a business in an IRS-declared disaster area and receive a late filing or late payment penalty notice? If the payment falls into the extended deadline/postponement period designated by the IRS, you should contact the IRS at the number provided on the notice you received. 

Also, if you are affected by a natural disaster and reside outside the covered disaster area in your state, you can contact the IRS disaster hotline at 866-562-5227 to request tax relief. The agency has a system that automatically detects taxpayers in the covered disaster area and offers filing and payment relief.

Related Content

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Following the destruction many faced in Florida from Hurricane Idalia, the IRS announced a tax deadline extension for individuals and businesses directly impacted by the disaster. The IRS deadline for individuals in Florida with a valid extension to file their 2022 federal tax returns has been extended from Oct. 16, 2023, to Feb. 15, 2024.

Hurricane Idalia made landfall near Keaton Beach as a Category 3 hurricane on the morning of Aug. 30. It wreaked havoc along Florida’s northwest coastline with sustained winds of 125 miles per hour and a significant 16-foot storm surge. The hurricane led to extensive flooding and damaged infrastructure, leaving thousands without electricity for several days.

The tax relief is based on the disaster declaration issued by the Federal Emergency Management Agency (FEMA). As with other IRS tax deadline extensions in other states due to natural disasters, the declaration identifies the hardest-hit areas of Florida. 

Following the storm, President Biden and first lady Jill Biden visited Live Oak, Fla. to survey some of the damage and speak with residents. “We’re here to help the state as long as it takes," President Biden said, referring to recovery support from the federal government.

Florida tax deadline extension from the IRS

Floridians with a valid extension to file their 2022 federal tax returns have until Feb. 15, 2024, to make certain federal tax payments and file various individual and business returns. However, this tax deadline relief doesn't extend to tax payments for 2022 tax returns, which were due on April 18, 2023.

However, the IRS tax deadline relief for Florida applies to the following:

• Quarterly estimated tax payments due on Sept. 15, 2023, and Jan. 16, 2024, are extended to Feb. 15, 2024.
• Other tax-related deadlines, including those for quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, 2024, are extended to Feb. 15, 2024.

Additionally, if you're in an affected area, you can claim disaster-related casualty losses on your federal income tax return for either 2023 or the prior year. If you claim your losses on your 2022 return, you have extra time, until Oct. 15, 2024, to make this election. 

See Form 4684, Casualties and Thefts for more information. The IRS says affected Florida taxpayers should put the FEMA disaster declaration number, DR-3596-EM, on any return.

IRS-identified areas affected by Hurricane Idalia 

Individuals residing or doing business in many of Florida’s counties qualify for tax deadline relief. Here are the counties identified as affected disaster areas by the IRS. More areas could be added as FEMA continues to assess the damage. 

Alachua, Baker, Bay, Bradford, Brevard, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Hardee, Hernando, Hillsborough, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Nassau, Orange, Osceola, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, Sumter, Suwannee, Taylor, Union, Volusia and Wakulla

If you live outside those areas but have ties through tax records, relief work, or a recent move, you may also be eligible for assistance. 

Check the disaster relief page on IRS.gov, which provides the most up-to-date list of eligible localities, or call 866-562-5227 if you have questions or concerns about eligibility. 

Additional state resources and update on Idalia response

Florida Gov. Ron DeSantis stated in a release that a Disaster Recovery Center (DRC) was established in Dixie County. (Survivors can get help at that center with several things, including applying for federal assistance.)  A complete list of open DRCs in Florida can be found here.

The Governor's Sept. 5 update on the Idalia response also highlights additional resources for affected Floridians being channeled through local and federal government agencies, including FEMA and the U.S. Small Business Administration. 

Additionally, due to the Florida Disaster Preparedness Sales Tax Holiday, which began on Aug. 26 but ended Sept. 8, you could purchase specific disaster-preparedness items tax-free in Florida. 

Some of those items included portable generators, safety equipment, and essential pet evacuation supplies. However, price caps are applied to each category of items. Online orders for eligible disaster-preparedness supplies could also qualify if they were made during the disaster-preparedness sales tax holiday. 

September is also National Preparedness Month, which raises awareness for disaster preparation, including steps taxpayers can take to prepare for hurricanes. For example, making copies of essential documents and taking photographs of your belongings can assist with insurance claims due to losses.

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Following severe storms, the IRS extended the deadline for several states to file federal income tax returns for the 2022 tax year. (Those are the returns normally due in April each year.)  However, the IRS extended deadlines were different for various states. So, although not all storm victims have a July 31 tax deadline, impacted taxpayers in 36 counties across four states, Arkansas, Indiana, Mississippi, and Tennessee, do. That deadline is just around the corner.

Tax Deadline in Arkansas

Impacted Arkansas taxpayers that had businesses or lived in federally declared disaster areas were granted a tax deadline of July 31 as a result of tornadoes and severe storms in March. 

The extended Arkansas tax deadline applies to individual and business tax returns normally due April 18, 2023. The extension also applies to estimated tax payments that would have normally been due between April 15 and July 31. The extended deadline applies to the following counties.

• Cross County 
• Lonoke County
• Pulaski County

Affected taxpayers in these counties who wish to contribute to 2022 IRAs and HSAs may still do so (as long as contribution limits allow) until July 31, 2023.

Tax Deadline for Indiana Tornado Victims 

The IRS extended the Indiana tax deadline for taxpayers in areas impacted by tornadoes that hit the state in March and April. Impacted taxpayers in the following Indiana counties have until July 31 to file federal tax returns, make estimated tax payments, and contribute to 2022 IRAs and HSAs. 

• Allen, Benton, and Brown Counties 
• Clinton, Grant and Howard Counties  
• Johnson, Lake, and Monroe Counties 
• Morgan and Owen Counties
• Sullivan and White Counties

Mississippi Tax Deadline Extension 

Storm victims in Mississippi received an extended IRS tax deadline after a March tornado devastated areas of the state. The July 31 Mississippi tax deadline applies to estimated tax payments that would have normally been due April 15 and June 15. 

Affected taxpayers also have until July 31 to file federal tax returns and contribute to HSAs and IRAs for 2022. Below are the Mississippi areas that qualified for the extension.

• Carroll County
• Humphreys County
• Monroe County
• Montgomery County
• Panola County
• Sharkey County
• Washington County

Tennessee Storm Victims Tax Deadline 

The IRS granted a federal tax extension of July 31 for several Tennessee counties after severe storms devastated areas of the state in March and April. 

Affected taxpayers in the below counties have until the end of July to file federal tax returns and make estimated tax payments normally due between April 15 and July 31.

• Cannon, Giles, and Hardeman Counties
• Hardin, Haywood, and Johnson Counties
• Lewis, Macon, and McNairy Counties
• Morgan and Rutherford Counties
• Tipton and Wayne Counties

Subject to normal contribution limits, taxpayers with a Tennessee tax deadline of July 31 can contribute to 2022 HSAs and IRAs until the July 31 deadline.

Information for Disaster Victims 

Taxpayers affected by storms can visit the IRS’ FAQs for Disaster Victims webpage for more information about extended tax deadlines and other available tax relief. A complete list of federally declared disaster areas can be found on FEMA’s website. 

Following severe flooding in Vermont last week, the IRS has extended tax filing and tax payment deadlines for all Vermont taxpayers directly impacted by the floods. 

• Although Tax Day 2023 has passed for most taxpayers, eligible Vermonters who requested a tax extension now have more time to file their federal tax returns. 
• Vermont flooding victims now have until November 15, 2023 to file (and in some cases pay) taxes originally due between July 9 and November 15.

Catastrophic rain storms hit Vermont earlier this month, resulting in widespread flooding that caused at least one death. Thousands of businesses and homes were also reportedly destroyed by the floods. 

The Vermont tax deadline extension follows IRS tax deadline extensions for taxes normally due in April 2022 for storm victims in several other states, including  California, Georgia, Alabama, Tennessee, Mississippi, Arkansas, New York, and Indiana. However, not all taxpayers in these states have a tax deadline of November 15.

Who Qualifies for the Vermont Tax Deadline Extension? 

Any taxpayer who lives in or owns a business in Vermont that was impacted by the recent flooding qualifies for the IRS tax extension. This applies to all 14 counties in the state. 

What if I live outside of Vermont? You can find information on which locations qualify for IRS tax relief in any state on the IRS’ tax relief in disaster situation’s page.

Federal Income Tax Extension

Vermont taxpayers who were previously granted a tax filing extension of October 16 now have an extended deadline of November 15. However, the new IRS deadline extension does not apply to tax payments due for 2022 individual tax returns. These tax payments were due on April 18, 2023.

Estimated Tax Payments and Other Taxes Affected

Impacted Vermont taxpayers have until November 15 to make quarterly etimated tax payments that would normally be due on September 15. Businesses that would normally need to file tax returns on September 15 also have a new extension of November 13. Other impacted taxpayers include the following.

• Quarterly payroll tax returns originally due July 31 and October 31 are now due November 15.
• The deadline for quarterly excise tax returns originally due July 31 and October 31 has also been extended to November 15.

Vermont Tax Deadline Extension

Vermont has not made any announcement regarding state tax relief as a result of the recent flooding. However, Vermont legislation allows for an automatic extension of individual and business tax returns when granted an extension by the IRS. Taxpayers should check with the Vermont Department of Taxes to verify whether tax relief is available at the state level.

The upcoming 2024 estimated tax payments deadline is September 15 for most taxpayers who make quarterly payments. However, millions of taxpayers have extended IRS deadlines for some 2024 estimated tax payments (due to severe weather impacts). But if you don't live in a designated area of one of those states, your quarterly estimated tax payment is due next week. 

Here's what else you need to know.

• If you don't have taxes automatically deducted from a regular paycheck due to being self-employed or retired, for example, you may need to make estimated tax payments. 
• The reason why is that in the U.S., we have a pay-as-you-go system for taxes. 

That means the IRS requires you to pay taxes as you earn your income. While most people think of paying taxes only as part of their annual federal tax return, there are actually two ways to pay as you go. You can either have taxes withheld from your paycheck, pension, or Social Security, or you can make quarterly estimated tax payments throughout the year.

Why does it matter? Failing to pay enough tax through withholding or estimated payments, or missing the estimated payment deadline, can ultimately result in IRS penalties. So, here are four things to know that might help.

#1. Who must make estimated tax payments

If you own a business, you generally need to make estimated tax payments. Those payments can also cover self-employment and alternative minimum tax. Special rules apply to fishers, farmers, and some taxpayers with higher incomes. There are also special estimated tax payment rules for recent retirees and individuals with disabilities.

If you are a partner, shareholder, or an individual with an expected tax liability of $1,000 or more when you file your tax return, the IRS requires you to make estimated tax payments. For corporations, the threshold is $500 or more. For more information, please refer to IRS Form 1120-W.

The IRS has an online interactive tax assistant that can help you determine if you need to make estimated tax payments. You can also use the IRS worksheet in Form 1040-ES, Estimated Tax for Individuals, to get more details.

Additionally, there are reasons why you might consider making estimated tax payments. For example:

• Not enough tax is withheld from your salary or pension. (You can estimate and adjust your withholdings to help prevent this from happening.)
• You received interest, dividend, alimony, or self-employment income.
• You received prizes, awards, or unexpected capital gains.

#2. When estimated tax payments are due 

The first estimated tax payment for 2024 was due on April 15, 2024. (That was Tax Day.) However, there were some IRS extensions to that and other estimated tax deadlines for people in several states directly impacted by severe storms. 

Some recent states include Florida due to Idalia, Hawaii due to wildfires, and South Carolina due to Idalia. If you were directly impacted by a disaster in those states, double-check to see when your tax payments are due.

But for most people without extended deadlines, the April 15, 2024, payment was for taxes due Jan. 1 through March 31, 2024. The payment that was due June 15 covers the period from April 1 through May 31, 2024. The payment due September 15 covers the period from June 1 through August 31, 2024.

#3. How much estimated tax you pay

If you are unsure about the amount you might need to pay for your estimated tax, it can help to follow a simple rule of thumb. Take your previous year's tax liability and divide it by four. Alternatively, you can use Form 1040-ES to calculate your estimated tax payments. This calculation considers several factors such as your projected adjusted gross income, taxable income, deductions, credits, and more for the current year.

What about paying estimated taxes? There are several ways to pay your estimated taxes, including by check and money order. But the IRS says the easiest way to pay is to make an electronic payment online through your IRS account or IRS DirectPay. 

You can use a debit or credit card, or digital wallet depending on your chosen payment option. But note that corporations are required to use electronic funds transfers for their estimated tax payments.

#4. How underpayment penalties and waivers work 

• If you don't pay your estimated taxes, you could end up owing more money when you file your tax return next year. 
• Additionally, the IRS may impose a penalty on the amount you underpaid. 

However, you may be able to avoid an underpayment penalty if you owe less than $1,000 or by paying most of your taxes during the year. You might also qualify for a penalty waiver if you meet certain requirements. For instance, your underpayment penalty might be waived if you are a victim of a major disaster or casualty, over 62 years old and disabled, or can show that your underpayment was due to reasonable cause. 

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Following severe tornadoes in areas of Oklahoma, the IRS has extended some tax filing and payment deadlines for impacted residents. The Oklahoma extended tax filing deadline comes after the original IRS tax deadline of April 18, but impacted Oklahoma residents have an extension to pay any taxes — or estimated taxes — due. Storm victims in the state now have until August 31, 2023 to file tax returns and make payments that were originally due between April 19 and August 31.

Eight tornadoes were confirmed in the region, resulting in at least three confirmed deaths in McClain County on April 26. The devastating storms reportedly caused 23,000 residents to lose power and damaged approximately 100 homes in the county.

The Oklahoma tax deadline extension follows IRS extended deadlines for several other states, including California, Georgia, Alabama, Tennessee, Mississippi, Arkansas, New York, and Indiana. However, not all of these areas have an extension of August 31.

New IRS Tax Deadline for Some Oklahoma Residents 

What areas qualify for the tax extension? This extended tax deadline for Oklahoma applies to impacted residents of McClain and Pottawatomie Counties. As of now, no new areas are expected to be added, but taxpayers can check the IRS’s Disaster Relief page for the most up-to-date list of affected disaster areas.

What if you live outside of these counties? If you live outside of the disaster area but have records located in the affected areas that impact your ability to file your taxes, contact the IRS at 866-562-5227.

Estimated Tax Payments 

The IRS extended deadline applies to quarterly estimated tax payments originally due between April 19 and August 31. The April 18 deadline has not been extended. 

However, impacted Oklahoma residents have an extension to pay estimated taxes that would normally be due on June 15. No penalty will be applied to estimated tax payments originally due on June 15 as long as they are made by the new August 31 deadline.

Tax Relief in Oklahoma 

Residents impacted by the Oklahoma tornadoes can claim casualty losses on their 2023 tax returns. Losses can include expenses from damages not reimbursed or covered through insurance. Affected taxpayers can claim the casualty loss without having to itemize deductions but need to follow instructions outlined by the IRS.

Additionally, Oklahoma storm victims can request copies of prior year tax returns without a fee. The IRS provides special instructions for Oklahoma storm victims to request free copies.

When are Oklahoma State Taxes Due?

Oklahoma state tax returns and payments were due April 18. Since the IRS tax extension only applies to due dates of April 19 through August 31, there is no extension on state filing or payments due by the original April 18 deadline. 

However, if you filed a federal extension, Oklahoma will grant an automatic extension so long as no tax was due to the state. Oklahoma has not yet announced extensions on other tax due dates.

Following severe tornadoes in Indiana, the IRS extended the tax deadline so that some Indiana residents now have until July 31, 2023 to file their federal tax returns. Tax Day has now passed for most taxpayers. But this last minute relief came just before the original tax deadline for some Hoosiers who hadn't already filed their federal returns. 

At least five people died during multiple devastating tornadoes that hit Indiana on March 31 and April 1, 2023. Sullivan, Johnson, Owen, Howard, and Clinton counties were hit the hardest by the severe storms.

The Indiana tax deadline extension follows IRS tax deadline extensions for taxpayers in storm-impacted areas of several other states, including California, Georgia, Alabama, Tennessee, Mississippi, Arkansas, and New York. However, not all these areas have an extension of July 31.

New IRS Tax Deadline for Some Indiana Residents

The IRS has extended the tax deadline from April 18 to July 31, 2023 for residents in storm-impacted areas of Indiana. 

What areas qualify for the tax extension? This new extended deadline applies to all taxpayers who reside or own a business in Allen, Benton, Clinton, Grant, Howard, Johnson, Lake, Monroe, Morgan, Owen, Sullivan, and White counties. Note: Other counties may be added later. You can check the IRS’s Disaster Relief page for the most up to date list of areas that qualify for tax relief. 

What if I live outside of these counties? If you live outside of the disaster area but had records located in the affected areas that impact your ability to file taxes, contact the IRS at 1-866-562-5227. 

IRA and HSA Contribution Deadline Extended

The new tax extension gives residents in qualifying areas until July 31 to make contributions to their IRAs and health savings accounts (HSAs) for 2022. Prior to the deadline extension, Indiana residents would have had until midnight today to contribute to 2022 HSAs and IRAs. Just be sure to check IRA contribution limits and HSA contribution limits that apply to you.

Estimated Tax Payments

The extended deadline means that impacted Indiana residents also have more time to make any estimated tax payments due from March 31, 2023 to the new July 31, 2023 deadline. Federal estimated taxes would normally have been due on April 18 and June 15. This new deadline does not extend any tax payments due prior to March 31, 2023. 

If You Can’t File by July 31 

 Some storm victims might not be ready to file by the July 31 deadline, especially if documents were destroyed during storms. Impacted Indiana residents can still e-file for a tax extension until midnight tonight. If you need to file an extension after April 18, you will need to make a request on paper by July 31, 2023. 

When are Indiana State Taxes Due?

Indiana has not announced a tax deadline extension for filing 2022 state tax returns or paying taxes due. However, according to the Indiana Department of Revenue, taxpayers with a federal extension are granted an automatic state extension unless they owe state taxes.

Tax Day — when most taxpayers have to file their federal income tax return for the 2025 tax year — falls on April 15, 2026. However, some taxpayers impacted by storms and natural disasters have more time to file.

Special tax extension rules also apply to Americans living abroad and people serving (or who served) in a combat zone or contingency operation.

As a result, they might have more time beyond April 15 to file their federal income tax return and pay whatever tax they are expected to owe. And they could receive an extension past October 15.

In any case, here's what you need to know about when taxes are due.

New: Tax Day Trivia: 6 Surprising Facts About Your 2026 Refund

Tax deadline extensions for natural disasters

If the Federal Emergency Management Agency (FEMA) declares a disaster area following a natural disaster, the IRS usually offers tax relief for the disaster victims in the form of tax filing and payment extensions.

In the case of certain recent natural disasters, the April 15 tax filing and payment deadline is extended in certain states for individuals and businesses residing or located in the designated disaster areas.

Suppose you were a victim of a natural disaster last year. In that case, the IRS recommends you recover your federal and state tax records as soon as possible. Having your tax documents available can serve as proof of income, property ownership, and help you claim expenses that may be subject to federal disaster-related tax deductions or government relief.

Generally, the IRS and state governments allow taxpayers to recover their tax records and other relevant documents for free in the aftermath of a disaster.

Tax Extension: Do you need more time to file?

If, for some reason, you are not able to file your federal tax return on time, you can request an automatic six-month tax extension to October 15, 2026, by filing Form 4868 or making an electronic tax payment.

To get an extension, you have to act by the original due date for your return, whether that is April 15 or another extended deadline date.

Keep in mind, however, that an extension to file doesn't extend the time to pay your tax. If you don't pay the tax due by your tax deadline, you will owe interest on the unpaid tax and could face additional penalties for filing and paying late.

Deadlines for state tax returns

Unless you live in a state with no income tax, you probably have to file a state tax return as well. Most states sync their income tax return deadline with the federal tax due date.

But double-check your state deadline to be sure.

State rules regarding tax filing extensions may differ from federal rules. So, check with the state tax agency where you live to find out when your state tax return is due and/or how to get an extension.

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Although the April 15 tax deadline has passed, federal tax obligations extend well beyond the traditional spring filing window.

In fact, the IRS enforces a year-round monthly schedule of deadlines for estimated quarterly payments, extension requests, tip reporting, and specialized account contributions.

Missing certain individual dates could trigger immediate penalties. The standard penalty for failing to file an on-time return is 5% of the unpaid tax per month (or partial month), while late payments accrue an additional 0.5% monthly fee up to a 25% cap, plus interest.

However, it can be hard to keep track of every IRS tax deadline and pay your taxes on time. (There's at least one tax deadline every month, after all.)

So to make things easier, here are the most important 2026 federal income tax due dates for individuals.

January

January tax deadlines

January marked the start of the 2026 tax filing season, but there were also a few tax deadlines during the month. The first was related to tips, which must have been reported to your employer by the 10th of the month following the month you received them.

The other January tax deadline involved estimated tax payments for the last quarter of 2025, which were due January 15 for most people who were required to make quarterly payments. You didn't need to make this payment if you filed and paid your taxes in full by February 2, 2026 (normally the end of January, but January 31 fell on a weekend).

If you lived in one of the states with extended IRS tax deadlines due to natural disasters, your January estimated tax payment (and other relevant tax obligations) could have been paid in accordance with that new deadline.

February

February tax deadlines

The monthly tip reporting deadline was February 10. This time, the deadline was for taxable tips received in January.

If you were exempt from income tax withholding in 2025 and wanted to reclaim the exemption for 2026, you needed to fill out a new W-4 form and give it to your employer by the 16th (if you qualified for the exemption). The typical deadline for filing and paying your estimated taxes in full was February 2 this year, due to January 31 falling on a weekend.

March

March tax deadlines

There were only three tax deadlines in March: Farmers and fishermen who didn't make an estimated tax payment in January; S-Corporations and partnerships; and monthly tip reporting.

April

April tax deadlines

April was an important month for tax deadlines.

For most people, April 15 was the last day to file a 2025 tax return, unless you applied for an automatic six-month tax extension with the IRS, which was also due on April 15.

If you were a household worker (for example, a nanny), you also had until April 15 to file Schedule H and pay your employment taxes.

• April 15 was also the last day that you could contribute to an IRA or health savings account (HSA) for 2025.
• In addition, except for those who requested an extension to file their 2025 tax return, April 15 was the deadline for self-employed people to contribute to a solo 401(k) or a simplified employee pension (SEP) plan for 2025.
• If you made excess IRA contributions in 2025, these must have also been withdrawn by April 15.

After you turn 73, you must take your first required minimum distribution (RMD) from your traditional IRAs and 401(k) plans by April 1 of the following year. RMDs for inherited IRAs have their own set of rules.

May

May tax deadlines

You only needed to worry about two May tax deadlines: Tax-exempt organizations that did not file for an automatic six-month extension (taxes still needed to be paid by the original due date), and tips you received in April.

However, if you received less than $20 in tips from a single employer in April, you didn't need to worry about this deadline.

June

June tax deadlines

Military personnel and other taxpayers serving or living outside the U.S. had until June 15 to file their 2025 tax returns. Estimated tax payments for the second quarter of 2026 were also due June 15.

July

July tax deadlines

July is a slow month for tax deadlines. You only need to worry about this due date if you received tips in June. The same $20 threshold per employer applies.

August

August tax deadlines

You have until August 10 to report tips received in July.

September

September tax deadlines

Employees must report August tips to their employer by September 10.

Estimated tax payments for the third quarter of 2026 are due by September 15.

October

October tax deadlines

Most October deadlines only apply if you receive a six-month tax filing extension. If that applies to you, you have to meet the October 15 deadline to avoid penalties.

Some taxpayers who receive a filing extension could also contribute to or withdraw from certain accounts.

See the table above to determine if that applies to you.

November

November tax deadlines

If you received more than $20 in tips during October, you must report them to your employer by November 10.

December

December tax deadlines

There are a few important tax deadlines in December. For one, it's the last month to contribute to employer-sponsored retirement plans, such as your 401(k). Unless it's your first, you must also take your annual RMD by the end of the year.

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We normally have one day in our heads when it comes to taxes: The due date for federal income tax returns. In 2022, "Tax Day" fell on April 18 for most taxpayers. But, of course, this isn't the only tax deadline during the year. In fact, there are several deadlines coming up on October 17 that many people should be thinking about, too.

It's very important to know and understand all tax deadlines – including the October 17 due dates. If you were to overlook a deadline, it could cost you a lot of money through either penalties, interest, or additional taxes. So, let's go over 5 tax deadlines for October 17 that you don't want to miss. Check them out to see if something unexpected applies to you.

If you didn't file your 2021 federal tax return by April 18, 2022, and requested a filing extension by that time, the extended due date is October 17, 2022. Bear in mind that if you requested an extension to file, that doesn't lengthen the time to pay whatever you owe in tax. You still had to estimate the amount of tax owe and pay that tax bill by April 18. Otherwise, you may be hit with penalties and interest on the unpaid amount.

Some people may have more time to file an extended federal tax return. For example, taxpayers living abroad or who served in a combat zone may be able to file an extended return later than October 17. Additionally, the IRS allows some people who are victims of a natural disaster to file an extended return after October 17. Check the IRS's disaster relief website to see if you're in an area where this type of disaster relief is allowed.

[Note: Victims of the Montana severe storms and flooding that began on June 10, 2022, have until October 17 to file federal returns and pay federal taxes originally due from June 10 to October 16, 2022.]

For some people, a federal tax return is not the only return due on October 17, 2022. Assuming you don't live in a state that has no income tax, chances are good that you'll need to file a state income tax return by October 17 if you asked for and received an extension from your state (maybe a local tax bill too).

Many states have moved their state tax return deadlines to mirror federal tax return due dates. Therefore, since October 17 is the due date for extended federal tax returns, it's also the due date for many state tax returns that have been extended. However, to be sure, it's smart to check with the state tax agency where you live so that you know and understand the deadlines for things like extensions, estimated payments, and returns for other types of taxes.

A Simplified Employee Pension IRA, or SEP IRA for short, is a favorite of self-employed people and small business owners who want to save money with a simple and inexpensive retirement plan. In fact, you can stash away more for retirement with a SEP IRA than with an employer-sponsored 401(k) plan. For 2022, you can contribute up to 25% of your pay or $61,000, whichever is less.

Therefore, if you were to use a SEP IRA, you can save more for retirement than if you used a traditional or Roth IRA. Remember that for 2022, the contribution limits for both a traditional and Roth IRA are $6,000 ($7,000 for those age 50 or older).

A SEP IRA must be set up by your tax return deadline (including extensions) for the year in which the qualifying contribution exists. The due date for contributing to the account is the same. Therefore, if you filed for an extension, the deadline for setting up and contributing to a SEP IRA for the 2021 tax year is October 17, 2022.

For those self-employed people who want to put money away in a Solo 401(k) and requested an extension to file their 2021 federal income tax return, they have until October 17 to contribute to the account for the 2021 tax year. The maximum that a self-employed person can contribute to a Solo 401(k) for 2021 is $58,000. Anyone who is age 50 or older can contribute up to $64,500. (For 2022, these amounts go up to $61,000 and $67,500, respectively.)

Since you can make contributions to a Solo 401(k) both as an employee and an employer, these amounts may seem high, but remember that the limits for contributing to all 401(k) plans are based on aggregate totals. Therefore, if you contribute to a 401(k) plan through your place of work, that amount will count against the overall limit of $58,000 or $64,500 and, therefore, the amount that you can contribute to your Solo 401(k) plan will decrease.

You contributed too much to your IRA and now have excess contributions! What do you do? The best way to deal with this situation is to withdraw the excess amount before the due date of the tax return for the taxable year of the contribution (including any extension). That means you have until October 17, 2022, to withdraw excess funds contributed in 2021 if you requested a filing extension for your 2021 tax return. This allows you to avoid the 6% penalty if the withdrawal is done timely. If not done timely, the excess contribution plus any earnings on the excess amount will be subject to a 6% penalty for every year the excess remains in the IRA.

The tax extension deadline has arrived. Even though the original federal tax return filing deadline for most people was on April 18 this year, the due date for filing an extended return for the 2021 tax year is October 17, 2022 – that's today! So, if you requested an extension to file your federal return, but you haven't filed yet, you probably need to take care of that by midnight tonight to avoid IRS penalties.

There are exceptions to the October 17 tax extension deadline, though. If you're living abroad or serving in a combat zone, you might be able to delay the due date for a little longer. There are also other tax moves that certain people saving for retirement need to make before the day is over. And, of course, don't forget about your state tax return.

Also remember that, in most cases, you still had to pay your 2021 taxes by April 18. If you didn't pay the estimated total tax you owed on time, the IRS can hit you with interest and penalties. So, pay up now if you owe the IRS.

Taxpayers Living Abroad

Although their path to a filing extension is a bit different, U.S. citizens living outside the country may also be facing an October 17 tax extension deadline. But they can request an additional, discretionary two-month extension to December 15, 2022. To get the additional two months, you must send the IRS a letter by the end of the day today explaining the reasons why you need the extra time. The IRS will let you know if the request is denied. If you don't hear back from them, you're good to go.

Plus, if you were outside the U.S. before April 18, you could have requested an extension beyond October 17 if you needed time to meet certain tests to qualify for an exclusion or deduction for foreign earned income or housing. This extension is generally for 30 days beyond the date that you expect to qualify for the exclusion or deduction. To request this tax extension, you had to file Form 2350 with the IRS by the due date for filing your return. Generally, if both your tax home and your abode are outside the U.S. and Puerto Rico on the regular due date of your return (April 18), the due date for filing your return for purposes of this extension is June 15. If you're granted this tax extension, you can't also get the discretionary two-month additional extension mentioned above.

Service in a Combat Zone

The April 18 due date for filing your tax return (and paying your tax) is automatically extended if you serve in a combat zone. There's a two-step process for figuring the length of a combat zone extension. First, your deadline is extended for 180 days after (1) the last day you're in a combat zone or the last day the area qualifies as a combat zone, or (2) the last day of any continuous hospitalization for an injury from service in the combat zone. Use whichever of these two dates is the latest.

Second, your tax extension deadline is pushed back beyond the first 180 days by the number of days you had left to take action with the IRS when you entered the combat zone. For example, you had 3½ months (January 1 to April 18) to file your tax return this year. Any days left in this period when you entered the combat zone (or the entire 3½ months if you entered it before the beginning of the year) are added to the 180 days.

The combat zone extension isn't just for military personnel, either. It can be claimed by merchant marines on ships under the Department of Defense's control, Red Cross personnel, war correspondents and civilians supporting the military.

Retirement Account Due Dates

If you're trying to save money for retirement, you might have another due date to worry about today. First, self-employed people who requested a tax filing extension before April 18 must set up or make 2021 contributions to a Simplified Employee Pension (SEP) IRA by the end of the day.

Retirement savers who contributed too much to a traditional or Roth IRA for 2021 also have until the end of today to fix their mistake. If you asked to extend the due date for your tax return, today is the last day to withdraw any excess 2021 IRA contributions (plus any earnings). If you make it in time, you can avoid the IRS's 6% excessive-contribution penalty.

Penalties

And speaking of penalties…if you don't file your tax return by today's tax extension deadline, expect the IRS to tack on a penalty. The late-filing penalty is 5% of the tax due for each month (or part of a month) your return is late. If your return is more than 60 days late, the minimum penalty is $435 (for tax returns required to be filed in 2022) or the balance of the tax due on your return, whichever is smaller. The maximum penalty is 25%.

If you have a good explanation for missing the tax extension deadline, you might be able to avoid the penalty. What's a good reason? Think fire, natural disaster, serious illness and the like. A lack of funds, in and of itself, is not a sufficient reason for failing to file on time. If you want to request a penalty waiver, attach a statement to your return when you do file it fully explaining your reason for being late.

If you're due a refund, then there's not much reason to worry. The IRS won't penalize you for filing a late return if you're due a refund. (They're more than happy to keep your money.)

State Tax Return Extensions

Your state may have different rules and due dates for extended state income tax returns. So, be sure to check with your state's tax agency for the tax extension deadline where you live.

The IRS has granted Hurricane Ian victims in Florida more time to file various individual and business tax returns and make tax payments. Specifically, victims throughout Florida impacted by the hurricane will have until February 15, 2023, to file and pay tax returns and payments due between September 23 and February 14.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, that only includes affected taxpayers who live or have a business in Florida, but the IRS will offer the same relief to any taxpayers in other areas designated by FEMA later.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization, and anyone visiting the area who was killed or injured as a result of the disaster.

Deadlines Extended

The deadlines that are pushed back for Hurricane Ian victims include the October 17, 2022, due date for extended 2021 personal income tax returns. They are now due on February 15, 2023. (However, payments for 2021 income taxes that were due on April 18, 2022, are not extended.) Impacted corporations with a 2021 filing extension expiring on October 17 have until February 15 to file and pay taxes, too. Tax-exempt organizations also have more time to file 2021 returns originally extended through November 15.

The quarterly estimated tax payment that's supposed to be paid by January 23, 2023, is now due on February 15. The due dates for quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023, are extended to February 15, too. Penalties on payroll and excise tax deposits due from September 23 to October 10 are also waived as long as the deposits are made by October 11, 2022.

Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Hurricane Ian victims may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any destruction in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For Hurricane Ian in Florida, the number is DR-4673-FL. Also write the Disaster Designation – "FL Hurricane Ian" – in bold letters at the top of the form.

If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040-X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for Hurricane Ian losses in 2022, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation ("FL Hurricane Ian") in bold letters at the top of the form. See IRS Publication 547 for details.

Lost Tax Returns

If your tax records are lost in the storm, the IRS will waive fees for obtaining copies of your previously filed tax returns. When requesting copies of a tax return or a tax return transcript, write "Hurricane Ian" in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS. You can also request a transcript on the IRS website.

You'll need a copy or transcript of your 2021 tax return if you're claiming a hurricane-related loss deduction for the 2021 tax year and you don't have your original return anymore. You'll also need new copies or transcripts for other tax years for your records if your original copies are lost or destroyed by the hurricane, too.

State Tax Relief

State tax relief may also be available to people and businesses affected by Hurricane Ian. It usually comes in the form of filing and payment extensions and/or penalty and interest waivers. State tax relief often extends to residents of other states who have a tax obligation in the state providing the relief (e.g., Georgia could provide relief for Florida residents who pay Georgia taxes).

The IRS announced that victims of the storms, flooding and landslides in parts of Alaska that started on September 15, 2022, will have more time to file various individual and business tax returns and make tax payments. Specifically, impacted taxpayers will have until February 15, 2023, to file and pay tax returns and payments due between September 15 and February 14.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in the Regional Education Attendance Areas of Bering Strait, Kashunamiut, Lower Kuskokwim and Lower Yukon qualify for the extensions. However, the IRS will offer the same relief to any taxpayers in other areas designated by FEMA later.

The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the natural disaster. When requesting copies of a tax return or a tax return transcript, write "AK Severe Storm, Flooding and Landslides" in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes relief workers affiliated with a recognized government or philanthropic organization, and anyone visiting the area who was killed or injured as a result of the disaster.

Deadlines Extended

The deadlines that are pushed back for the Alaska victims include extended 2021 personal income tax returns that would normally be due on October 17, 2022. They are now due on February 15, 2023. However, payments for 2021 income taxes that were due on April 18, 2022, are not extended.

Businesses with an original or extended income tax due dates within the affected time period also have more time to file and pay taxes. This includes partnerships and S corporations with 2021 tax year extensions expiring on September 15, and corporations with an extension expiring on October 17. Tax-exempt organizations also have more time to file 2021 returns originally extended through November 15.

Quarterly estimated tax payments due September 15, 2022, and January 15, 2023, are also extended until February 15. The due date for quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023, are extended to February 15, too. Penalties on payroll and excise tax deposits due from September 15 to September 29 are also waived as long as the deposits are made by September 30, 2022.

Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Victims of the Alaska storms, flooding and landslides may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any personal property damage or losses in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the Alaska victims, the number is DR-4672-AK.

If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040-X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for the Alaska storms, flooding and landslides, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation ("AK Severe Storm, Flooding and Landslides") in bold letters at the top of the form. See IRS Publication 547 for details.

Residents and business in Puerto Rico affected by Hurricane Fiona, which began impacting the island on September 17, now have until February 15, 2023, to file and pay certain federal taxes. The IRS extended the deadlines after the island was declared a disaster area by the Federal Emergency Management Agency (FEMA). The tax relief applies to residents and businesses in all 78 municipalities who were affected by the hurricane.

Various federal tax filing and payment due dates for individuals and businesses from September 17 to February 14 will be shifted to February 15, 2023. This includes extended 2021 personal income tax returns that would normally be due on October 17, 2022. They are now due on February 15, 2023. Payments for 2021 income taxes that were due on April 18, 2022, are not extended.

The tax relief also applies to the quarterly estimated tax payments due on January 17, 2023, and the quarterly payroll and excise tax returns due on October 31, 2022, and January 31, 2023. Penalties on payroll and excise tax deposits due from September 17 to October 2 will also be waived if the deposits are made by October 3, 2022.

Victims of Hurricane Fiona in Puerto Rico don't have to contact the IRS to get this relief. However, if you receive a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, call the number on the notice to have the penalty abated.

The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers in Puerto Rico who are affected by the hurricane. When requesting copies of a tax return or a tax return transcript, write "Puerto Rico Hurricane Fiona" in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

In addition, the IRS will work with any taxpayer who lives outside Puerto Rico, but whose records necessary to meet a deadline occurring during the postponement period are located on the island. Taxpayers qualifying for relief who live elsewhere need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization, and anyone visiting the island who was killed or injured as a result of the hurricane.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim a deduction for them on either the return for the year the loss occurred (in this instance, the 2022 return to be filed next year), or the return for the prior year. This means that taxpayers can, if they choose, file an amended return to claim these losses on their 2021 return. Be sure to write the FEMA declaration number (EM-3583-PR) on any return claiming a loss. It's also a good idea for affected taxpayers claiming the disaster loss on an amended 2021 return to put the Disaster Designation ("Puerto Rico Hurricane Fiona") in bold letters at the top of the form. See IRS Publication 547 for details.

Under our country's "pay as you go" tax system, Uncle Sam wants to collect his cut periodically throughout the year as you earn income. In most cases, the required taxes are paid through paycheck withholding (your employer sends in the payments). But if you're self-employed, have a side gig, or don't have taxes withheld from other sources of taxable income (e.g., interest, dividends or capital gains), then quarterly estimated tax payments to the IRS are typically required.

Estimated taxes are paid in four equal installments — generally, one installment for each quarter of the year. The first payment for the 2022 tax year was due on April 18, 2022, while the second payment was due June 15. The third 2022 estimated tax payment, which is for income earned from June 1 to August 31, is due today (September 15, 2022)! If you're paying electronically, your payment must be submitted and received by midnight tonight.

Also, unless you live in a state with no income tax, you might owe state estimated taxes, too. Check with the state tax agency where you live for state estimate tax payment due dates.

Disaster Victims Get More Time to Pay Estimated Taxes

People and businesses impacted by certain natural disasters are typically given more time to file federal tax returns and pay federal taxes. This includes extensions for making estimated tax payments. For the third estimated tax payment for the 2022 tax year, victims of the following disasters are allowed more time to pay estimated federal income taxes:

• New Mexico wildfires and straight-line winds that began on April 5, 2022 (extension to September 30, 2022);
• Montana severe storms and flooding that began on June 10, 2022 (extension to October 17, 2022);
• Arizona severe storms on July 17 and 18, 2022 (extension to November 15, 2022);
• Missouri severe storms and flooding that began on July 25, 2022 (extension to November 15, 2022);
• Kentucky severe storms, flooding, landslides, and mudslides that began on July 26, 2022 (extension to November 15, 2022); and
• Mississippi water crisis that began on August 30, 2022 (extension to February 15, 2023).

Calculating and Paying Estimated Taxes

Use Form 1040-ES to calculate and pay your estimated taxes – use the worksheet in the form instructions. The various payment methods are also described in the instructions for the form.

If you owe at least $1,000 in tax for the year, you could be hit with a penalty if you don't pay enough estimated tax throughout the year. So, if you expect to surpass the $1,000 threshold, make sure you accurately calculate the payment amount.

For more information on 2022 estimated tax payments, see When Are 2022 Estimated Tax Payments Due?

The IRS has granted victims of the recent severe storms in Arizona more time to file various individual and business tax returns and make tax payments. Specifically, victims of the storms on July 17 and 18, 2022, have until November 15, 2022, to file and pay tax returns and payments due between July 17 and November 14.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in the Salt River Pima-Maricopa Indian Community qualify for the extensions, but the IRS will offer the same relief to any taxpayers in other Arizona localities designated by FEMA later.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Deadlines Extended

The deadlines that are pushed back include extended 2021 personal income tax returns that were supposed to be due on October 17, 2022. However, payments for 2021 income taxes that were due on April 18, 2022, are not extended. In addition, Arizona storm victims in the designated area get more time to make the estimated tax payments due on September 15, 2022.

The due date for quarterly payroll and excise tax returns normally due on August 1 and October 31, 2022, are extended to November 15, too. Penalties on payroll and excise tax deposits due from July 17 to 31 will also be waived as long as the deposits were made by August 1, 2022.

Businesses with an original or extended income tax due date within the affected time period also have more time to file and pay taxes. This includes partnerships and S corporations with 2021 tax year extensions expiring on September 15, and corporations with an extension expiring on October 17.

Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or late payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Victims of the Arizona severe storms in July may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any destruction in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the recent Arizona storms, the number is DR-4668-AZ.

If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040-X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for Arizona storm losses in 2022, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation ("Arizona Severe Storms") in bold letters at the top of the form. See IRS Publication 547 for details.

The IRS announced that victims of the water crisis in Mississippi (including Jackson, Miss.) that started on August 30, 2022, will have more time to file various individual and business tax returns and make tax payments. Specifically, impacted taxpayers will have until February 15, 2023, to file and pay tax returns and payments due between August 30 and February 14.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in Hinds County (which includes Jackson, Miss.) qualify for the extensions, but the IRS will offer the same relief to any taxpayers in other areas designated by FEMA later.

The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the water crisis. When requesting copies of a tax return or a tax return transcript, write "Mississippi Water Crisis" in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes relief workers affiliated with a recognized government or philanthropic organization, and anyone visiting the area who was killed or injured as a result of the disaster.

Deadlines Extended

The deadlines that are pushed back for Mississippi water crisis victims include extended 2021 personal income tax returns that would normally be due on October 17, 2022. They are now due on February 15, 2023. However, payments for 2021 income taxes that were due on April 18, 2022, are not extended.

Businesses with an original or extended income tax due dates within the affected time period also have more time to file and pay taxes. This includes partnerships and S corporations with 2021 tax year extensions expiring on September 15, and corporations with an extension expiring on October 17.

Quarterly estimated tax payments that are due September 15, 2022, and January 15, 2023, are also extended until February 15. The due date for quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023, are extended to February 15, too. Penalties on payroll and excise tax deposits due from August 30 to September 13 are also waived as long as the deposits are made by September 14, 2022.

Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Victims of the Mississippi water crisis may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any personal property damage or losses in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the Mississippi water crisis, the number is EM-3582-MS.

If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040-X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for the Mississippi water crisis, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation ("Mississippi Water Crisis") in bold letters at the top of the form. See IRS Publication 547 for details.

The IRS has granted victims of the recent severe storms and flooding in Missouri more time to file certain individual and business tax returns and make tax payments. Specifically, victims of the storms and flooding that began on July 25, 2022, have until November 15, 2022, to file and pay tax returns and payments due between July 25 and November 14.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in the Independent City of St. Louis and in Montgomery, St. Charles and St. Louis Counties qualify for the extensions. However, the IRS will offer the same relief to any taxpayers in other areas designated by FEMA later.

The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the Missouri natural disasters. When requesting copies of a tax return or a tax return transcript, write "Missouri Severe Storms and Flooding " in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes relief workers affiliated with a recognized government or philanthropic organization, and anyone visiting the area who was killed or injured as a result of the disaster.

Deadlines Extended

The deadlines that are pushed back for Missouri storm and flood victims include 2021 personal income tax returns that were supposed to be due on October 17, 2022. However, payments for 2021 income taxes that were due on April 18, 2022, are not extended.

Businesses with an original or extended income tax due dates within the affected time period also have more time to file and pay taxes. This includes partnerships and S corporations with 2021 tax year extensions expiring on September 15, and corporations with an extension expiring on October 17.

Quarterly estimated tax payments that are due September 15, 2022, are also extended until November 15. The due date for quarterly payroll and excise tax returns normally due on August 1 and October 31 are extended to November 15, too. Penalties on payroll and excise tax deposits due from July 25 to August 8 are also waived as long as the deposits are made by August 9, 2022.

Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Victims of the Missouri severe storms and flooding may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any destruction in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the recent Missouri storms and flooding, the number is DR-4665-MO.

If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040-X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for Missouri storm or flooding losses in 2022, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation ("Missouri Severe Storms and Flooding ") in bold letters at the top of the form. See IRS Publication 547 for details.

The IRS has granted victims of the recent severe storms, flooding, landslides, and mudslides in Kentucky more time to file various individual and business tax returns and make tax payments. Specifically, victims of the storms and flooding that began on July 26, 2022, have until November 15, 2022, to file and pay tax returns and payments due between July 26 and November 14.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in Breathitt, Clay, Floyd, Johnson, Knott, Leslie, Letcher, Magoffin, Martin, Owsley, Perry, Pike, and Wolfe Counties qualify for the extensions, but the IRS will offer the same relief to any taxpayers in other areas designated by FEMA later.

The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the Kentucky natural disasters. When requesting copies of a tax return or a tax return transcript, write "Kentucky Severe Storms, Flooding, Landslides and Mudslides" in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes relief workers affiliated with a recognized government or philanthropic organization, and anyone visiting the area who was killed or injured as a result of the disaster.

Deadlines Extended

The deadlines that are pushed back for Kentucky storm and flooding victims include 2021 personal income tax returns that were supposed to be due on October 17, 2022. However, payments for 2021 income taxes that were due on April 18, 2022, are not extended.

Businesses with an original or extended income tax due dates within the affected time period also have more time to file and pay taxes. This includes partnerships and S corporations with 2021 tax year extensions expiring on September 15, and corporations with an extension expiring on October 17.

Quarterly estimated tax payments that are due September 15, 2022, are also extended until November 15. The due date for quarterly payroll and excise tax returns normally due on August 1, 2022, are extended to November 15, too. Penalties on payroll and excise tax deposits due from July 26 to August 9 are also waived as long as the deposits are made by August 10, 2022.

Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Victims of the Kentucky severe storms, flooding, landslides, and mudslides may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any destruction in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the recent Kentucky storms and flooding, the number is DR-4663-KY.

If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040-X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for Kentucky storm or flooding losses in 2022, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation ("Kentucky Severe Storms, Flooding, Landslides and Mudslides") in bold letters at the top of the form. See IRS Publication 547 for details.

Residents and business in Oklahoma impacted by the severe storms, tornadoes, and flooding beginning May 2, 2022, now have until September 1, 2022, to file and pay certain federal taxes. The IRS extended the deadlines after parts of the state were declared a disaster area by the Federal Emergency Management Agency (FEMA). The tax relief applies to residents and businesses in Adair, Cherokee, Muskogee, Okmulgee, Pottawatomie, Seminole, and Tulsa Counties who were affected by the May 2 natural disasters.

Various federal tax filing and payment due dates for individuals and businesses from May 2 to August 31 will be shifted to September 1, 2022. This includes the quarterly estimated tax payments that were due on June 15, 2022.

The tax relief also applies to the quarterly payroll and excise tax returns normally due on August 1, 2022. Penalties on payroll and excise tax deposits due from May 2 to May 16 will also be waived if the deposits were made by May 17, 2022.

Victims of the storms, tornadoes, and flooding in Oklahoma don't have to contact the IRS to get this relief. However, if you receive a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, call the number on the notice to have the penalty abated.

The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the Oklahoma natural disasters. When requesting copies of a tax return or a tax return transcript, write "Oklahoma Severe Storms, Tornadoes and Flooding" in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

In addition, the IRS will work with any taxpayer who lives outside Oklahoma, but whose records necessary to meet a deadline occurring during the postponement period are located in the state. Taxpayers qualifying for relief who live in another state need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization, and anyone visiting the area who was killed or injured as a result of the disaster.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2022 return that you will file next year), or the return for the prior year. This means that taxpayers can, if they choose, file an amended return to claim these losses on their 2021 return. Be sure to write the FEMA declaration number (DR-4657-OK) on any return claiming a loss. It's also a good idea for affected taxpayers claiming the disaster loss on an amended 2021 return to put the Disaster Designation ("Oklahoma Severe Storms, Tornadoes and Flooding") in bold letters at the top of the form. See IRS Publication 547 for details.

The IRS has granted victims of the recent Montana severe storms and flooding more time to file various individual and business tax returns and make tax payments. Specifically, victims of the storms and flooding that began on June 10, 2022, have until October 17, 2022, to file and pay tax returns and payments due between June 10 and October 16.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in Carbon, Flathead, Park, Stillwater, Sweet Grass, Treasure and Yellowstone Counties qualify for the extensions, but the IRS will offer the same relief to any taxpayers in other Montana localities designated by FEMA later.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization, and anyone visiting the area who was killed or injured as a result of the disaster.

Deadlines Extended

The deadlines that are pushed back for Montana storm and flooding victims include the quarterly estimated tax payments that are due on June 15 and September 15, 2022. The due date for quarterly payroll and excise tax returns normally due on August 1, 2022, are extended to October 17, too. Penalties on payroll and excise tax deposits due from June 10 to June 26 are also waived as long as the deposits were made by June 27, 2022.

The due date for 2021 business tax returns that were properly extended to September 15, 2022, are now due by October 17 for the storm and flooding victims.

Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Victims of the Montana severe storms and flooding may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any destruction in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the recent Montana severe storms and flooding, the number is DR-4655-MT.

If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for Montana storm or flooding losses in 2022, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation ("Montana Severe Storms and Flooding") in bold letters at the top of the form. See IRS Publication 547 for details.

The IRS has granted victims of the recent New Mexico wildfires and straight-line winds more time to file various individual and business tax returns and make tax payments. Specifically, victims of the fires and winds that began on April 5, 2022, have until September 30, 2022, to file and pay tax returns and payments due between April 5 and September 29.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in Colfax, Lincoln, Los Alamos, Mora, San Miguel, Sandoval and Valencia Counties qualify for the extensions, but the IRS will offer the same relief to any taxpayers in other New Mexico localities designated by FEMA later.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Deadlines Extended

The deadlines that are pushed back include the April 18, 2022, due date for filing a 2021 personal income tax return and paying 2021 taxes. In addition, wildfire and wind victims in the designated area have until September 30 to make 2021 IRA contributions. They also get more time to make the estimated tax payments due on April 18, June 15, and September 15, 2022.

The due date for quarterly payroll and excise tax returns normally due on May 2 and August 1, 2022, are extended to September 30 for New Mexico wildfire and wind victims, too. Penalties on payroll and excise tax deposits due from April 5 to April 19 will also be waived as long as the deposits were made by April 20, 2022.

Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or late payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Victims of the New Mexico wildfires and straight-line winds may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any destruction in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the recent New Mexico wildfires and straight-line winds, the number is DR-4652-NM.

If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040-X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for New Mexico wildfire or wind losses in 2022, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation ("New Mexico Wildfires and Straight-Line Winds") in bold letters at the top of the form. See IRS Publication 547 for details.

If you missed the tax deadline (April 15 for most people) for filing your federal tax return, you could face IRS penalties.

But if you didn't file your 2024 federal tax return or request an extension by April 15, don't let that stop you from completing your Form 1040 and paying your tax as soon as possible if you owe the IRS money.

And, if you cannot file your federal income tax return, at least pay what you can now. Acting quickly after you miss the tax deadline will help keep the penalties and interest you may owe from getting out of hand.

Note: Keep in mind that some people may have extra time to file their tax returns and pay any taxes due. For example, filing and payment deadlines are extended for people directly impacted by storms and natural disasters in several states.

Also, Americans living overseas and military personnel sometimes have later tax filing and payment deadlines. But if the special rules for those taxpayers don't apply to you, then it's time to stop procrastinating.

If you missed the tax deadline: Filing for free

Depending on your income, you may be able to file your tax return for free after the April 15 deadline. If your 2025 federal adjusted gross income was $89,000 or less, you can use the IRS's Free File program up until October 15.

If your income is too high for the Free File program and you are comfortable doing your taxes without guided prompts, you can also use IRS Free File Fillable Forms until October 15. Those are electronic versions of paper tax forms, and some of the math is done automatically.

Missing the tax deadline: Penalties and interest

When you miss the tax deadline, interest accrues on your unpaid balance and compounds daily from April 15 until you pay the balance in full.

The interest rate on underpayments of tax is set each quarter. It's 6% for the quarter beginning April 1, 2026.

In addition to interest charged on any tax due, you could face separate penalties for filing and paying late.

The late filing penalty is 5% of the tax due each month (or part of a month) your return is late (tax filing extensions are factored in). The maximum penalty is 25% of your unpaid taxes.

• The late-payment penalty is 0.5% of the unpaid balance for each month (or part of a month) the tax isn't paid.
• The rate jumps to 1% ten days after the IRS issues a final notice of intent to levy or seize property. However, the penalty is only 0.25% for each month, or part of a month, in which an IRS installment agreement is in effect.
• Overall, the penalty can be as high as 25% of the unpaid tax. As you can see, the longer you wait, the higher the penalties grow.

When you finally pay any tax due, the IRS will apply the payment to the tax you owe, then to any penalty, and then to any interest. A penalty amount that appears on your bill is generally the total amount of the penalty up to the date of the notice, not the penalty amount charged each month.

Can you avoid penalties for missing the tax deadline?

If you miss the tax deadline and have a good explanation, you might be able to avoid the penalties (but not interest). What's a "good" reason for missing the tax deadline? Think fire, natural disaster, serious illness, and the like.

But note: A lack of funds, in and of itself, is not a sufficient reason for failing to file or pay your federal income taxes on time, although the underlying reason for your lack of funds might satisfy the IRS. If you want to request a penalty waiver, attach a statement to your return fully explaining your reason for filing or paying late.

What if you are getting a tax refund? If you are confident that you are due a tax refund, then there is no reason to worry. The IRS doesn't penalize taxpayers for filing a late return if they are receiving a refund.

Some people who are fined because they miss the tax filing and payment deadline may qualify for penalty relief from the IRS.

If you are penalized, contact the IRS by calling the number on your notice and explain why you couldn't file and/or pay on time. They may cut you a break if you have a good reason, like your house caught on fire, you were seriously ill, etc.

If you have a history of filing and paying on time, you may qualify for relief under the IRS's "first-time penalty abatement" policy.

Typically, to have your penalty waived under this policy, you must have filed and paid your taxes on time for the past three years. There are other requirements that you must satisfy as well.

What if you can't pay your taxes?

If you didn't file your tax return because you can't pay your taxes, the IRS has a couple of options for you. For instance, you can go online and request a payment plan that allows you to pay the tax you owe over time.

• Short-term online plans offer payment periods of up to 180 days if the combined tax, penalties and interest you owe is less than $100,000.
• Longer-term online payment plans, which require monthly payments, are available if the total amount owed is less than $50,000 (a set-up fee may apply for long-term online payment plans, depending on your income).

If you don't qualify for an online payment plan, you can ask the IRS for an installment agreement by filing Form 9465.

Depending on your income, a set-up fee may apply if the IRS approves your agreement. The IRS typically responds to installment agreement requests within 30 days.

Another option is to request an offer in compromise (OIC).

Generally, with an OIC, you agree to pay a reduced amount of tax. However, before the IRS will consider an OIC, you must file all tax returns due and make any estimated tax payments required for the current year. The IRS generally approves an OIC if it thinks the amount you offer is the most it can reasonable expect to collect.

You might also be able to get the IRS to temporarily suspend collection of your tax debt if you're facing a financial hardship (i.e., paying your taxes now would prevent you from covering your basic living expenses).

That doesn't mean that your tax debt goes away, though. And penalties and interest continue to accrue until your debt is paid in full.

State tax return deadlines

Don't forget about your state tax return (unless you live in a state with no income tax). The due date for most state tax returns is April 15.

Check with the state tax agency where you live to learn more about the penalties involved if you miss a state tax deadline.

Related

• States With IRS Tax Deadline Extensions
• When Are Estimated Tax Payments Due in 2025?
• States With Tax Deadline Extensions This Year

Tax Day 2026 is right around the corner, and some taxpayers may be scrambling to get their tax returns filed by the April 15 federal deadline.

If you have yet to file your 2025 federal income tax return (and pay any tax due), you should do so, or else you’ll miss the tax deadline. It should be noted that some taxpayers impacted by natural disasters and severe storms have an extended deadline.

(For more on extended deadlines, see our related article: States With 2026 IRS Tax Deadline Extensions)

You don’t want to wait until the last minute to file or pay your taxes and accidentally incur unwanted penalties. But if you think you’ll be racing against the clock, you ought to at least know when that last minute arrives.

Where to mail your tax return: Postmark rules

Some people still fill out paper tax forms. If they owe any money with their return, they may write a paper check to the IRS for the amount due. If that's you, make sure the envelope is postmarked by April 15.

But don't expect your post office to stay open until midnight on Tax Day as they used to years ago (sometimes with bands playing and snacks available). Also, a new USPS policy has changed postmark rules in 2026.

As of January 1, mail is only postmarked once it reaches a processing facility. This means simply dropping your return in a collection box on April 15 is no longer safe — it likely won't be processed or postmarked until the 16th. To ensure your tax return is considered "on time," hand-deliver it to a postal clerk during regular business hours to get that physical stamp.

For more information, see Kiplinger's report, Your Mailed Tax Return Could Be Late Under New USPS Postmark Rules: Here's Why and How to Avoid IRS Penalties.

Pay tax online – The stroke of midnight

If you are filing an electronic return, as most people do, you must e-file your tax forms by midnight on Tax Day.

However, don't wait until 11:59 p.m. to click the submit button. It can take a few minutes for your return to be successfully transmitted to the IRS, and that delay can cause you to miss the deadline.

You can pay the IRS if you owe taxes electronically. It's easy using the IRS's Direct Pay service (payment directly from a bank account); the Electronic Federal Tax Payment System; or a credit card, debit card, or digital wallet like PayPal (processing fees may apply). Go to the IRS's "Pay Online" webpage to get started.

If you are receiving a tax refund, you'll need to enter your bank account information for direct deposit. That's because the IRS is no longer issuing physical checks to taxpayers who are owed a refund (unless you qualify for one of the rare exceptions).

See also: IRS Phasing Out Paper Checks: Here's What to Know in 2026

File tax extension online if you need it

If you just cannot file your return on Tax Day for whatever reason, you can get a tax filing extension to October 15, 2026. But you have to act on Tax Day to get the extension.

You can get an extension by mailing in a paper Form 4868 – postmarked by April 15 – or submitting an electronic version of the form by midnight. You can also get a filing extension by making an electronic tax payment by midnight.

As mentioned, keep in mind that many people in states impacted by storms and natural disasters have extended IRS tax deadlines.

Furthermore, an extension to file doesn't extend the time to pay your tax. If you don't pay the taxes you owe by the end of the day on April 15, you'll owe interest on the unpaid tax. You could also be hit with additional penalties for filing and paying late.

If you can't pay the tax you owe, pay what you can now, and then look into the various tax payment options for any amount left. You can set up a payment plan, make an "offer in compromise," or request a temporary collection delay.

For more information on filing extensions, see How to Get More Time to File Your Tax Return.

State income tax returns

Unless you live in a state with no income tax, you probably have to file a state income tax return by the end of the day, too. (Perhaps a local tax return as well.) Most states set their tax return due dates to match up with the federal deadline, but not all of them.

For example, in California, the due date to file your personal income state tax return and pay any owed balance is April 15. However, the Golden State offers an automatic extension until October 15 to file your return, although your payment is still due by the federal deadline of April 15.

California also offers a June 15, 2026, extended filing and payment date for some folks who are traveling or living outside of the state on Tax Day.

To find your state's tax deadlines, including those for extension requests, estimated payments, and returns for other types of taxes, check with the state tax agency where you live.

Related

• Tax Day: Is the Post Office Open Late?
• How to File for a Tax Extension
• Ways to Pay the IRS if You Owe Taxes

We normally "celebrate" Tax Day on April 15, but it was April 18 this year for most people because the 15th fell on a weekend. If you knew you weren't going to be able to file your 2022 federal income tax return in time, you could have requested an extension to file your return until October 16 (but you still had to pay the tax you expect to owe by your original due date).

But, of course, some people missed the Tax Day deadline and didn't request an extension. And, as you might guess, the IRS doesn't take that lightly and will make you pay a price. If you're curious about what punishment the IRS is going to bring down on you, here's a glimpse of the interest and penalties you may face if you didn't act before the tax deadline.

Interest accrues on your unpaid balance and compounds daily from April 18 (which was the tax deadline for most people) until you pay the balance in full. Interest rates on underpayments of tax are set each quarter. For non-corporate taxpayers, the rate is equal to the federal short-term rate plus three percentage points. The current interest rate for underpayments is 7% (for first quarter of 2023).

If you didn't pay the tax you owe on time, the IRS will impose a late payment penalty equal to 0.5% of the tax owed after April 18 for each month, or part of a month, the tax remains unpaid. The penalty is capped at 25% of the amount owed. The rate jumps to 1% ten days after the IRS issues a final notice of intent to levy or seize property. However, the penalty is only 0.25% for each month, or part of a month, in which an IRS installment agreement is in effect.

You won't have to pay the penalty if you can show "reasonable cause" for the failure to pay on time. Reasonable cause is based on all the facts and circumstances in your situation. The IRS will consider any sound reason for failing to pay your taxes on time, including:

• Fire, casualty, natural disaster or other disturbances;
• Inability to obtain records;
• Death, serious illness, incapacitation or unavoidable absence of you or a member of your immediate family; or
• Other reason that establishes that you used "all ordinary business care and prudence" to meet your federal tax obligations but were nevertheless unable to do so.

Simply not having the money, in and of itself, is not reasonable cause for the failure to pay taxes on time. However, the reasons for your lack of funds may meet reasonable cause criteria for the failure-to-pay penalty.

When you finally pay, the IRS will first apply the payment to the tax you owe, then to any penalty, and then to any interest. A penalty amount that appears on your bill is generally the total amount of the penalty up to the date of the notice, not the penalty amount charged each month.

If you didn't file your return by Tax Day and didn't request an extension to file, the IRS can impose a 5% failure-to-file penalty on any unpaid taxes for each month, or part of a month, that your tax return is late. However, the penalty won't exceed 25% of your unpaid taxes.

The late filing penalty is calculated based on the tax that remains unpaid after April 18 or, if an extension is granted, after October 16. Unpaid tax is the total tax shown on your return reduced by amounts paid through withholding, estimated tax payments, and allowed refundable credits.

If your return is over 60 days late, the minimum failure-to-file penalty is the smaller of $435 (for tax returns required to be filed in 2023) or 100% of the tax required to be shown on the return.

If you still haven't paid what you owe five months after Tax Day, the failure-to-file penalty will max out, but the failure-to-pay penalty continues until the tax is paid, up to 25%.

If both a failure-to-file and a failure-to-pay penalty apply in the same month, the combined penalty is 5% (4.5% late filing and 0.5% late payment) for each month, or part of a month, that your return was late, up to 25%. The maximum total penalty for failure to file and pay is 47.5% (22.5% late filing and 25% late payment) of the tax.

The HSA contributions deadline was April 15, so if you haven't already maxed out your 2023 contributions, you only have time to do so if you have an extended tax deadline.

HSAs (Health Savings Accounts) offer a tax-efficient way to pay for medical expenses. Since employer contributions aren't included in your taxable income, earnings are tax-free, and distributions are not taxed if you use them to pay qualified medical expenses. You might also qualify for a deduction (or a larger deduction) on your tax return. 

HSA contributions deadline

Each year, you have until the tax filing deadline to make HSA contributions for the previous calendar year. So, while you have a little more time to take action, the HSA contributions clock is still ticking.

(Note: The HSA contributions deadline is later for eligible taxpayers in some states with automatic IRS tax deadline extensions due to severe storms and natural disasters.)

HSA contribution limits 2023

• For the 2023 tax year, you can contribute up to $3,850 to an HSA if you have self-only coverage
• If you have family coverage, the max HSA contribution for 2023 is $7,750
• Anyone who was age 55 or older at the end of 2023 can put in an additional $1,000 in "catch up" contributions for the year

However, the contribution limits can be reduced If your employer makes contributions to your HSA that are excludable from your income — including amounts contributed through a cafeteria plan. Those contributions count against your overall contribution limit.

Excess HSA Contributions

If you haven't reached your limit, you might want to think about making an HSA contribution today. But don't go over your HSA limit! There's a 6% penalty on excess HSA contributions. And this penalty applies to each year the excess contribution remains in your account.

What if you contribute too much to your HSA? If you accidentally put too much money in your HSA for 2023, you can withdraw the excess amount and avoid the penalty if you do both of the following:

• Withdraw the excess before the end of the day on Tax Day (April 15). 
• Withdraw any income earned on the withdrawn contributions and include the earnings in "Other income" on your 2023 tax return.

If you don't withdraw all your excess contributions, you can apply them toward your 2024 HSA contribution limits. Excess contributions from previous years that are still in your HSA account can be deducted, but the deduction is limited to the lesser of (1) your maximum HSA contribution limit for the year minus any amounts actually contributed for the year, or (2) the total excess contributions in your HSA at the beginning of the year.

How does the HSA deduction work?

As mentioned above, you may be able to deduct your HSA contributions for the 2023 tax year on your current federal income tax return (up to the maximum contribution limit). And you don't have to itemize to claim this tax break. Instead, your contributions are reported as an adjustment to income on Line 13 of Schedule 1 (Form 1040).  You also need to submit Form 8889  with your tax return. 

So, it might be wise to put more money into your HSA before the 2023 HSA contributions deadline if you haven't already reached the limit. That's especially true if you plan to contribute to the account soon anyway. That way, you'll get that extra deduction for 2023 and save more cap space for 2024 contributions.

There are some limitations, though. 

• You can't deduct HSA contributions made by your employer, including pre-tax funds contributed through payroll deductions. 
• You also can't claim the deduction if someone else can claim you as a dependent on their tax return. 
• Distributions from an IRA that are contributed to your HSA in a direct trustee-to-trustee transfer are not deductible, either. 

If you already filed your 2023 tax return, you can file an amended tax return to claim a new or increased HSA deduction if you add more to your account before the deadline. You generally have three years from the date you filed your original return or two years from the date you paid any tax due to file an amended return (whichever date is later). Once the IRS receives your amended return, you can track its status online using the IRS's "Where's My Amended Return?" tool.

Related Content

• What Are the FSA and HSA Contribution Limits for 2024?
• Record-High HSA Contribution Limit for 2024
• Non-Eligible HSA Expenses: When a Doctor’s Note Isn’t Enough
• Nine Tax Deadlines for April 15

Time is running out if you haven't filed your 2022 federal income tax return yet. This year's tax filing deadline is April 18 for most people. (The tax deadline is extended for some residents in states impacted by severe weather and storms). But filing your federal tax return isn't the only thing you should be thinking about for April 18, because there are a few more tax deadlines that fall on that day.

If you are self-employed, saving for retirement or college, have a health savings account, or employ a nanny, you may want to take action by the tax deadline. There are other reasons why you might have a tax-related deadline today.  And, overlooking a tax deadline could cost you money, either in additional taxes, penalties, or interest. So, here are 9 tax deadlines for Tax Day, April 18, that you don't want to miss. Check them out to see if any apply to you.

Of course, the biggest due date on the tax calendar each year is the one for your federal personal income tax return. Like most of the tax deadlines on this list, it usually falls on April 15 but is April 18 this year because of a local holiday in Washington, D.C. and because April 15 falls on a weekend. 

This year, you generally must file your return for the 2022 tax year (i.e., for the income you received from January 1 to December 31, 2022). Use Form 1040 and the related schedules to report your 2022 income, adjustments, and credits. The IRS recommends filing your return electronically, as opposed to using a paper form and mailing it in, because the return will be processed much faster. If you are getting a tax refund, you will also get your money much faster if you e-file your return. Opting for direct deposit over a paper check will speed up your refund as well.

If you can't file your income tax return on time, you can get an extension until October 16. However, to get the extension, you must request it by the end of the day on April 18. To make the request, either file Form 4868 or make an electronic tax payment.

Just remember that the extension to file your return doesn't extend the time to pay your tax. You still have to estimate the amount of tax you'll owe and pay your tax bill by midnight April 18. If you don't act in time, the IRS will charge you interest on the unpaid balance and hit you with late payment penalties.

For more information, including extension details for Americans living abroad and people serving in a combat zone, see How to Get More Time to File Your Tax Return.

Although we only have to file an income tax return once each year, the IRS expects you to pay your taxes throughout the year as you earn income. If you are working for a business, those tax payments are withheld from your paycheck and sent to the IRS by your employer. But if you are self-employed or have income from other sources that aren't subject to withholding, then it is up to you to make quarterly estimated tax payments during the year.

The first estimated tax payment for 2023 is due April 18 for most people. This payment is for the estimated amount of taxes owed for income received from January 1 to March 31, 2023. Use Form 1040-ES to calculate and pay your estimated taxes. If at least two-thirds of your gross income is from farming or fishing, you can make just one estimated tax payment for the 2023 tax year by January 17, 2024. If you don't pay enough tax during the year, either through estimated payments or withholding, the IRS could hit you with a stiff penalty.

If you want to put more money in an IRA and have it count towards your 2022 contributions, you have until the end of the day on April 18 to make that move (If you're in a state impacted by disaster or storms, the IRS may have extended that deadline). That's because most people have until your tax return filing deadline for the year to fund an IRA for that year. But remember that there are limits to the amount you can contribute to an IRA each year. For 2022, you can put away up to $6,000 in an IRA – $7,000 if you're age 50 or older.

If you haven't already maxed out your 2022 IRA contributions, doing so before the April 18 tax deadline can be a smart move. First, contributions to a traditional IRA are often tax deductible, while withdrawals from a Roth IRA are tax-free. So, whether you contribute to a traditional or a Roth IRA, you can cut your tax bill now or in the future.

People with low or moderate income who contribute to an IRA might also qualify for the Saver's Credit, which can be worth as much as $1,000 ($2,000 for joint filers).

If you contribute to an IRA for 2022 by the tax filing deadline, you can claim the IRA deduction and/or the Saver's Credit on your 2022 tax return. That means you can get the tax benefits immediately, instead of waiting until next year if you were to contribute the same amount after Tax Day.

Also note that the tax return filing deadline is also the last day to withdraw any excess 2022 contributions to your IRAs (if you didn't request a filing extension). So, if you put in more than the $6,000 limit ($7,000 if you're 50 or older), take it out now to avoid stiff penalties.

Self-employed people saving for retirement have until the end of the day on April 18 to put money away in a Solo 401(k) plan or Simplified Employee Pension (SEP) IRA for 2022. If they request a tax return filing extension, the deadline shifts to October 16.

For the 2022 tax year, a self-employed person can contribute up to $61,000 to a Solo 401(k) – $67,500 if they are age 50 or older. (Those amounts go up to $66,000 and $74,500, respectively, for 2023.) These amounts are relatively high because you can make contributions as both an employee and an employer, although the April 18 deadline only applies to the "employer contributions."

The SEP IRA contribution limit for 2022 is $61,000 ($66,000 for 2023). Only the employer can contribute to a SEP IRA, and whatever percentage of compensation employers set aside in the plan for themselves is the same percentage of pay they must contribute for each eligible employee.

Contributions to both Solo 401(k)s and SEP IRAs are deductible – at least to a point. Contributions made to a Solo 401(k) as an employer are deductible business expenses. However, the deduction can't be more than 25% of the compensation paid (or accrued) during the year to eligible employees participating in the plan. If you're self-employed, you must reduce this limit for contributions you make for your own account.

For a SEP IRA, the most you can deduct on a 2022 tax return for contributions to your or your employee's account is the lesser of:  (1) your contributions, or (2) 25% of the compensation (limited to $305,000 per participant) paid to the participants during the year from the business that has the plan, not to exceed $61,000 per participant. (In 2023, these amounts increase to $330,000 and $61,000, respectively.) If you contribute to your own SEP-IRA, you must make a special computation to figure your maximum deduction for the contributions.

If you have a health savings account (HSA) or Archer medical savings account (MSA) as part of your health insurance plan, Tax Day (April 18) is the last day you can contribute to the account for 2022 (People in states where the IRS extended the tax deadline due to storms, have more time).

For 2022, you can contribute up to $3,650 to an HSA if you have self-only coverage or up to $7,300 for family coverage. (For 2023 figures and other 2022 limits, see HSA Contribution Limits and Other Requirements.) For an Archer MSA, you or your employer can contribute up to 75% of the annual deductible of your high deductible health plan (65% if you have a self-only plan), although you can't contribute more than you earned for the year from the employer through whom you have your HDHP.

Plus, you may qualify for a deduction on your 2022 tax return for contributions to your HSA or Archer MSA (complete Form 8889 for the HSA deduction and Form 8853 for the Archer MSA deduction). If you can claim one of these deductions, think about putting more money into the account for 2022 before the tax deadline expires if you haven't already reached the contribution limit. That's especially true if you plan to make a contribution soon anyway. That way, you'll get that extra deduction for 2022 and save more cap space for 2023 contributions.

People saving for retirement or medical expenses have until the end of today to contribute to 2022 accounts – but what about people saving for college? If you're using a Coverdell Education Saving Account (ESA) to save away money for college, then you also have until the end of Tax Day, April 18, to put more money away in the account for 2022.

With a Coverdell ESA, you can't contribute more than $2,000 for any particular child. Plus, if your modified AGI is between $95,000 and $110,000 (between $190,000 and $220,000 for joint filers), the $2,000 limit for each child is gradually reduced to zero.

There's no deduction for contributions to a Coverdell ESA. However, money deposited in a Coverdell ESA grows tax free, and there's no tax on distributions used for qualified college expenses. So, the earlier you get money into the account, the more time it has to grow before the child is off to college.

If you employ a nanny, babysitter, maid, gardener or other household worker, but you aren't filing a federal income tax return (Form 1040), you must file Schedule H and pay 2022 employment taxes for your household workers by the end of Tax Day (April 18). If you do file a tax return, include Schedule H with the return and report the tax owed on Schedule 2 (Form 1040), Line 9.

Both you and the employee may owe social security and Medicare taxes. You're responsible for payment of the employee's share of the taxes as well as your own. You can either withhold your worker's share from the employee's wages or pay it out of your own pocket.

Your share is 7.65% of the employee's wages (6.2% for Social Security tax and 1.45% for Medicare tax). Your employee owes the same amount. The limit on wages subject to social security tax was $147,000 for 2022, but there's no limit on wages subject to the Medicare tax. Household employees also owe a 0.9% additional Medicare tax on wages exceeding $200,000 for the year. The additional tax is only imposed on the employee, but you have to withhold it from their wages and pay it to the IRS.

You also might have more to worry about than just federal taxes. Unless you live in a state with no income tax, you probably have to file a state income tax return on April 18, too. (You might have a local tax return due as well).

In most states, the deadline for file a state income tax return is the same as the federal due date. But there are a few states that have a different due date. Also, due to severe weather and natural disasters, some states have extended tax deadlines.

For state tax deadlines, including those for extension requests, estimated payments, and returns for other types of taxes, check with the state tax agency where you live.

The IRS has granted victims of a recent natural disaster in Puerto Rico more time to file various individual and business tax returns and make tax payments. Specifically, victims of the severe storms, flooding and landslides that began on February 4, 2022, now have until June 15, 2022, to file and pay tax returns and payments due between February 4 and June 14.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in Cataño, Dorado, Toa Baja, Vega Alta and Vega Baja qualify for the extensions, but the IRS will offer the same relief to any taxpayers in other Puerto Rico localities designated by FEMA later.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization and anyone visiting the impacted area who was killed or injured as a result of the disaster.

Deadlines Extended

The deadlines that are pushed back include the April 18, 2022, due date for filing a 2021 personal income tax return and paying 2021 taxes, and various business returns normally due March 15 and April 18. Storm victims in the designated area will also have until June 15 to make 2021 IRA contributions.

Puerto Rico storm victims will also get more time to make the first quarterly estimated tax payment for the year that's due on April 18, 2022. In addition, farmers who would normally skip estimated payments and file their returns by March 1, 2022, can now wait until June 15 to file their 2021 return and pay any tax due.

The due date for quarterly payroll and excise tax returns normally due on May 2, 2022, are extended to June 15 for Puerto Rico storm victims, too. Penalties on payroll and excise tax deposits due from February 4 to February 21 will also be waived as long as the deposits were made by February 22, 2022.

Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or late payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Victims of the Puerto Rico storms, flooding and landslides may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any damage or loss in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the recent Puerto Rico storms, flooding and landslides, the number is DR-4649-PR.

If you decide to claim a deduction for 2021 and you have already filed your 2021 tax return, you can amend your 2021 return by filing Form 1040X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for Puerto Rico storms, flooding and landslide losses in 2022, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on an amended 2021 return should also put the Disaster Designation ("Puerto Rico Severe Storm, Flooding, and Landslides") in bold letters at the top of the form. See IRS Publication 547 for details.

Like everyone else, farmers and fishermen must pay federal income taxes throughout the year as they earn income. If those taxes aren't paid through withholding from wages or other sources, quarterly estimated tax payments are typically required. If Uncle Sam doesn't get paid on time, you could be looking at a stiff IRS penalty. However, if at least two-thirds of your gross income is from farming or fishing, there are a couple of loopholes that let you adjust the normal timetable for making estimated tax payments or avoid them altogether.

First, qualifying farmers and fishermen can pay all the estimated tax they owe with just one payment if the payment is made by the due date for the last quarterly payment of the year. For the 2021 tax year, the last payment was due January 18, 2022 (it's due January 17, 2023, for the 2022 tax year).

Second, qualifying farmers and fishermen don't need to make any estimated tax payments at all if they file their personal income tax return for the year by March 1 of the following year and pay any tax owed at that time. (Note: If it falls on a Saturday, Sunday or legal holiday, the March 1 due date shifts to the next business day.)

March 1 Estimated Tax Deadline Pushed Back for 2021 Tax Returns

According to the IRS, taxpayers are having a difficult time electronically filing Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations. Because of this problem, some farmers and fishermen may not have been able to e-filing their 2021 tax returns by the March 1, 2022, due date. As a result, the IRS is pushing the March 1 deadline to April 18, 2022 (April 19 for farmers and fishermen living in Maine or Massachusetts).

The extension will automatically apply to any qualified farmer or fisherman who doesn't report an underpayment penalty on their 2021 tax return. For those who already filed their tax return and included the penalty, the penalty can be abated by filing Form 843, Claim for Refund and Request for Abatement. When filing Form 843, make sure you:

• Write “Request for Relief under Notice 2022-13” at the top of the form;
• Enter “6654” on Line 4;
• Check the third box on Line 5a;
• Include the dates of any tax or penalty payment on Line 5b; and
• Note that you're a qualifying farmer or fisherman who is filing a 2021 tax return and paying any tax due on the return in full by April 18, 2022 (or by April 19 if you live in Maine or Massachusetts), on Line 7.

Other Special Estimated Tax Penalty Rules for Farmers and Fishermen

There are a couple of other special rules for farmers and fishermen that can help them avoid the estimated tax underpayment penalty – although there's no relief this year from the IRS that affects them.

The penalty for not paying enough tax during the year through withholding or estimated payments doesn't apply if you owe less than $1,000 in tax. The penalty is also avoided if your withholding or estimated tax payments equal at least 90% of your tax liability for the year, or 100% of the tax shown on your previous year's return (110% if your adjusted gross income for the previous year was more than $150,000).

For qualifying farmers and fishermen, the penalty is avoided if their withholding or estimated tax payments equal just 66.667% of their tax liability for the year (as opposed to the normal 90% requirement), or 100% of the tax shown on their previous year's return. Also, the higher percentage (110%) requirement for higher-income taxpayers doesn't apply for qualifying farmers and fishermen.

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Links mentioned in this episode:

• Amazon Raising Annual Fees for Amazon Prime Membership
• 40 Best Amazon Prime Benefits to Use in 2022
• Erin M. Collins, National Taxpayer Advocate, bio page
• Taxpayer Advocate Service qualifier tool
• Where's My Refund? How to Track Your Tax Refund Status
• How to Cut Your 2021 Tax Bill

Transcript

David Muhlbaum: Did you know there’s someone at the IRS whose sole purpose is to help taxpayers deal with the agency? If that sounds like an oxymoron, that’s just because you haven’t met Erin Collins, the current taxpayer advocate. She’ll join us to explain what her office does, how it can help you, and why the IRS is struggling to get refunds out. Also, Amazon is raising prices; what can you do? All coming up on this episode of Your Money’s Worth.

David Muhlbaum: Welcome to Your Money’s Worth. I’m kiplinger.com senior editor David Muhlbaum, joined by my co-host, senior editor Sandy Block. How are you doing, Sandy?

Sandy Block: I’m doing great. Welcome back from whatever wilderness you were in the last few days.

David Muhlbaum: I was in Utah, experiencing the rising cost of rental cars. So yeah, that’s an inflation story, you know. Everyone’s got an inflation story these days. Have you seen the price of milk, gas? Oh my God, whatever. But now we have a price increase for the way we live now, and that is to say by ordering things online.

Sandy Block: You mean Amazon?

David Muhlbaum: Yeah, exactly. That’s a shorthand. I mean, the price of Amazon Prime is going up from $119 to $139. So that’s a 17% increase if you’re paying annually. And that covers a lot of people. I don’t know that it’s more people then who buy milk or gas, but it’s 150 million or so here in the United States. That’s a lot of people who are going to be affected.

Sandy Block: Right. And I mean, I know the headline definitely caught my attention because 17% sounds pretty steep. But since we brought inflation into this, we need to be careful about our statistics. That’s not a year-over-year increase like we talk about with the price of milk or gas, which seem to go up every month or whatever. The last Amazon Prime increase was quite a while ago.

David Muhlbaum: Yeah. Yeah. It was 2018. So our editor Bob Niedt, he knows Amazon backward and forward. And in fact, he forecast this increase a few weeks ago. So, Amazon has operated on a four-year cycle for price increases. And the last one was from $99 to $119. Now, you know on a percentage basis, that was a bigger jump.

Sandy Block: Right. We’ve got our calculators out, but let’s move on from crunching numbers. What are those 150-plus million people supposed to do other than just roll their eyes and suck it up?

David Muhlbaum: Yeah. I imagine most people are going to shrug and pay it. Probably in part because they’re going to get auto renewed at the new rate. And well, there you go.

Sandy Block: Right. And that’s I think what a lot of these subscription services really count on, is inertia. You’re not even paying the bill. You’ve got it on your credit card. It goes on, and they’re just hoping that you’ll just move on, but if you really don’t want to give up free shipping, maybe one way to live with this increase is to go deeper into the Amazon ecosystem and make sure that you’re actually getting what you’re paying for, because there’s a whole lot more to Amazon Prime, as I plan to discover for myself, than just free shipping. There’s videos, there’s music, there’s movies, there’s all kinds of stuff

David Muhlbaum: Yeah. So forth indeed. I mean, that’s just the thing that Bob has written about in his piece on best Amazon Prime Benefits to Use, beyond the entertainment. You mentioned there’s also this try before you buy, which lets you pick up to six items of clothing, shoes, accessories. You can see if they fit or well, look good, and then bring it back for free or send it back for free. And he also gets into how to manage a Prime membership to get the most out of it. Like, you can share benefits with something called Amazon Household. So maybe you don’t need as many accounts, that sort of thing.

Sandy Block: Right. And one of the things that I discovered even before this price increase, I don’t go to Whole Foods all the time, but I did happen to go into one this week. And I used my prime membership. And I saved a couple bucks on some overpriced fish. So that’s the kind of thing you need to be thinking about. But the other alternative is, you could quit. What wasn’t around last time there was an increase was Walmart Plus. They’ll give you free next day or two-day delivery, prescriptions and gasoline discounts, some other perks for $84 a year. So maybe they’ll pick up some disgruntled Amazon people who aren’t into inertia.

David Muhlbaum: Yeah. Well, until they raise their price, maybe? I doubt it. That would not make much sense. But you know who is also likely to raise their membership fee this summer? Costco. That’s another one of Bob’s forecasts.

Sandy Block: Oh no. Well, I don’t go to Costco anymore because I always spent too much when I did; we go to BJ’s. But you are a dedicated Costco customer, aren’t you?

David Muhlbaum: Yeah. Truth. My dogs have been on Nature’s Domain salmon meal and sweet potato dog food for well, as long as I’ve had dogs. So I don’t think they’re going to let me switch.

Sandy Block: Well, maybe your dogs won’t let you switch to Old Roy, but I think these increases in subscription prices present a good opportunity for everyone to review their subscriptions, make sure you’re actually using all of the ones that you signed up for. If there are cheaper alternatives or maybe you can get more out of the subscriptions that you already have, because they really do count on you not doing that when they raise these prices.

David Muhlbaum: Be a conscious shopper. Yes, thank you for the actionable personal finance advice, Sandy.

Sandy Block: That’s what we’re here for.

David Muhlbaum: That’s right. Anyway, coming up on our main segment, we will talk to Erin Collins, the national taxpayer advocate about what her office does, what it can do for you as a taxpayer and how this filing season is shaping up. Stick around.

Meet the National Taxpayer Advocate, Erin Collins

David Muhlbaum: Welcome back to Your Money’s Worth. For our main segment today, we’re joined by Erin Collins, the national taxpayer advocate. Now that’s a pretty cool title, don’t you think? So here’s the history. A law called the Taxpayer Bill of Rights created this job almost 30 years ago. And the advocate has a staff of about 1,600 and a mission to be a voice for taxpayers, as well as report to Congress on what kind of job the IRS is doing. So that’s kind of a policy-wonk description of the taxpayer advocate’s place in the Washington ecosystem. But they have a very real, very tangible role in helping individual taxpayers all over the country. And we definitely want to get into what they can and can’t do for you. So, welcome Erin.

Erin Collins: Thank you so much for having me today.

Sandy Block: I want to thank Erin not for just coming today, but for being a great source for us since she took the job a while back. And you’ve given us a lot of insights on what’s happening in the IRS and what people can expect when people are filing their taxes, which frankly isn’t really good. That’s important to our audience because they come to us for a lot of information about filing their taxes and I think that’s been even more critical in the past couple of years when people have gotten lots of stimulus checks, child tax credits, and other sorts of new wrinkles in the tax system. The other thing we want to talk about is if people need help with their taxes. They have to be careful about who they go to because basically anybody can call themselves a tax preparer in the current system. So, on that note, Erin, can you explain a bit more about how your office, the Taxpayer Advocate Service operates? I think people might find it a little confusing that while it’s technically part of the IRS and funded with taxpayers’ dollars, it’s actually meant to advocate for taxpayers.

Erin Collins: Yeah. We have a unique role that we play in tax administration with respect to assisting taxpayers. So we wear multiple hats. As you indicated, the position was created over 20 years ago. And what we do is we represent individual taxpayers with their unique problems that they have with the IRS. But we also look at what we call systemic issues. Those are issues that impact multiple taxpayers, where we can provide administrative recommendations to the IRS for change as well as proposed legislative recommendations to Congress to change the law on behalf of taxpayers. But I think most people that work with our local TAS offices, they’re working with our case advocates to fix a particular problem.

And I think what a lot of people don’t focus on is what our authority is. We advocate, hence in our name, Taxpayer Advocate Service. So we do not have the delegated authority to actually implement the correction or the change. And that was specifically created so we could be an independent organization. We can give it a fresh or fair new look from what the IRS has previously done. And then we work with our colleagues or our counterparts in the IRS and recommend the correction or the fix.

David Muhlbaum: But there’s not a real equivalent at other federal agencies, is there? I mean, you know some have ombudsmen and that sort of thing, but this is so much more involved and aimed at private citizens, businesses too.

Erin Collins: Yeah. So again, we do. It’s a unique role. I think most people are familiar with what I would call the classic ombudsman. And those are individuals that conduct investigations, make recommendations. We do wear that hat, but we also have the ability to advocate specifically for taxpayers, both systemically across the board for all taxpayers, but again, we can help individuals with a particular challenger problem they’re having with the IRS.

David Muhlbaum: Okay. Let’s dig in a little bit to what that particular problem might be. Which ones you can solve, which ones are not your purview. And I noticed on the website, you have this really cool thing, the TAS Qualifier Tool. And we’ll put a link into that, which is basically, it literally tells you, it answers the question that I’m asking you now: "Does your problem fit?" But since not everyone’s going to go there right away, could you give us some sense of what problems are in your purview and what problems are not.

Erin Collins: Sure. So we have what we call two buckets. One is for financial hardship, and the second bucket is our systemic, when you have an issue with the IRS system. So the first bucket for example, take a situation where collections is knocking at the door and a taxpayer is having issues making ends meets. They can’t pay the rent or they’re having trouble. And what we can do is assist and work with our collection folks to possibly suspend the collection activity, or even possibly get an offer in compromise or installment agreement.

Erin Collins: So we can work with the taxpayer with that specific problem. The other challenge taxpayers are facing right now, and it’s been a very difficult two years for the taxpayers with respect to the filing season is when the system isn’t working as it’s intended. It’s broken. Unfortunately, the filing season with all the additional backlogs, and the challenges, and the delayed of the processing of those claims, we’ve created millions of taxpayers that in essence fit in that second bucket. And as you alluded to, we have typically 1,600, 1,700 employees. We can’t help 2, 3, 4, 5 million taxpayers at a time. So we try and limit what we can do to get the most result. And where’s the best use of our resources? So as you said, if you go into the tool, you’ll see it gives you options as to whether or not your case qualifies to work with us and contact a local taxpayer advocate.

Sandy Block: So I think Erin, from what I understand about what you all do, tthe axpayer advocate office is not there if you have a question about whether you should itemize or not, or whether you’re eligible for the child tax credit, the IRS has a lot of websites for that. But as you alluded to, and this is something we want to dig into, you’re probably not going to have a lot luck calling the IRS for help. Can you talk to us a little bit about what taxpayers can expect during the upcoming tax season? Because last season was pretty awful in terms of customer service. Hardly anybody could get through to the IRS. A lot of refunds were delayed. What should we expect this year?

Erin Collins: Yeah. If we’re talking about the filing season, I do have concerns that the IRS has, as we call it, they’ve dug themselves into a hole from the last two filing seasons. And they still have not dug out of that hole. So it’s going to potentially impact the smooth or quick processing of the current filing season. So we do have concerns. And as you alluded to, Sandy, although we are IRS employees, we’re not really main IRS. So the typical questions and problems, that’s really more in the purview of IRS. Although we do a lot of outreach and lot of education, that’s really not our main role. So again, when the system isn’t working, that’s really where taxpayers should reach out to us. But yes, they should make the effort to try and work with the IRS. But as you pointed out, the level of service on the phone this past year, it was about one in 10 calls were answered, which is just unacceptable.

Erin Collins: So taxpayers are being forced to try and self-help. irs.gov has a lot of useful information, but unfortunately, it’s sometimes difficult to find. And if you’re trying to get specific information on your delays, on your refund, the tool the IRS has, Where’s My Refund, doesn’t answer the question if you have a delay.

Sandy Block: And Erin, following up on that, I know from personal experience that Where’s My Refund does not work very well, but given this situation that the IRS has a huge backlog of returns from last year, from 2020 that they haven’t even processed, what is the most effective way that a taxpayer can avoid a delay or a problem during this tax filing season?

Erin Collins: Yeah. I think, although we realize that there is a percentage of our population for whom filing electronically is not an option, but for those who have the ability, make every effort to file electronically. Paper returns, those are where they have the most delays. Paper is not a friend to the IRS. So number one, you want to file electronically. Number two, if you can request a direct deposit, so provide your bank information. And number three, triple check for errors. Last year, part of the delay that was caused for all taxpayers was individuals that put inconsistent information on the return from IRS records. So for example, you use your last pay stub to put your income, not your W2. And your pay stub may include two or three days from the month of January. So that information may not match the IRS’s records. If you received a stimulus check or the six monthly payments that you receive for the advanced child tax credit, that should match IRS records.

If it doesn’t, it will be pulled out of the system and manually processed. So last year again, we had at least 13 million returns that had to be manually processed, which caused a 35 million backlog at the end of the filing season. So we do not want to have a repeat of that backlog going forward. So if taxpayers can really try and make sure that the correct information is on the return and they file electronically, they should not have a delay and it should be processed within that 21 days that the IRS projects that you’ll get your refund.

Sandy Block: I want to dig a little bit deeper Erin, as to why there was such a backlog last year, you mentioned the stimulus checks. And I also think that the pandemic’s effect on the IRS itself had a role in that. Maybe you could talk a little bit about why some people still haven’t gotten their 2020 refunds yet.

Erin Collins: Yeah. It actually started at the onset of the pandemic. The IRS shut down, basically all the facilities across the country. And think of the volume that the IRS receives. And in essence, it’s over 200 million tax returns every year. So what happened was when the pandemic first started, they got in a hole, and it’s been two years now and they still are not out of the hole. They still have a backlog month after month after month. So if we don’t get through the backlog, we’re never going to get ahead. So this year, absolutely the IRS has to not only be timely with respect to the current filing season, but we’ve got to get that backlog resolved and get the payments to the taxpayers who are still waiting for those refunds from last year.

David Muhlbaum: That gives me an idea for a modest proposal. So, if you don’t pay your taxes or behind you pay, not only, but interest on the amount that’s outstanding. What if the IRS were to pay you interest for a refund they haven’t processed, assuming it’s not your fault?

Erin Collins: You are great on tax administration because golly gee, you can get interest if the checks are delayed.

David Muhlbaum: Oh, this exists?

Erin Collins: So thank you for that recommendation. But yeah. But unfortunately that doesn’t make people happy. The interest rate’s incredibly low. And so, yes, maybe you’ll get an extra $5, but people want the money now. A lot of these returns that were filed or were filed before, possibly April of last year and they still have not received their payment. And again, that’s just unacceptable.

David Muhlbaum: Well, as Sandy knows my own personal tax situation is such that I’ve never been in a position to receive such a reward. I am a little curious though, is the interest rate the same as you pay for owing?

Erin Collins: Now you’ve stumped me. I want to say the answer is yeah.

Sandy Block: I don’t think it is.

Erin Collins: I think when you have... There are exceptions, like if the size of the company. There’s all sorts of different criteria, but they’re close, but again, neither one is anything to write home about.

David Muhlbaum: Right. Right. Got it. Okay. Well, we certainly appreciate your guidance about filing electronically and that’s what more and more people do each year. But there’s a subset who are going to want help filing whether it’s electronically or on paper. That is to say they don’t have a tax problem. Well, not at least yet. They just want someone to do their taxes for them. So assuming someone doesn’t meet the guidelines of... And Sandy, these are the two programs you wrote about the Volunteer Income Tax Assistance Program or the Tax Counseling for Elderly Program. We’ll put some links in to explain what those are about. How do you recommend people go about finding a tax preparer? Like, do you all have guidance on that?

Erin Collins: Yes. And it’s also on irs.gov, but real quick, going back to the VITA and what we call the TCE, that is limited with respect to your income. And I believe it’s $56,000 a year ...

David Muhlbaum: Or your age.

Erin Collins: Right. So if you’re above that amount, unfortunately, you don’t qualify for that. But IRS has on their website, I think it’s https://www.irs.gov/chooseataxpro. And then actually, it’s a very useful tool. It helps you select a qualified or federal tax preparer. So it includes a list of licensed or certified, or folks with credentials. So for example attorney, CPA, enrolled agents, and it also includes a directory of those individuals that take annual CPE and also get certified. And it’s listed by name, city, and the criteria.

Erin Collins: So it’s a great directory and it’s a great tool if you’re looking to find a particular person. But you really should choose that preparer carefully. We read about the scams, the IRS is very well aware. So you know, ask a friend, ask somebody you trust, get referrals, check out their credentials. Some people go into the Better Business Bureau, see if there’s complaints. And then taxpayers also have the ability to what I call self-help. There are a number of companies out there that do tax preparation software which will walk you through as you’re preparing the returns. So there are options for taxpayers out there to get help with respect to preparing their returns.

Sandy Block: And to follow up on that, Erin, you and I have talked about this just when you refer to scams. I know you’ve advocated for some kind of minimum competency requirements for tax preparers. But right now, basically David or I could put a sign on our door and charge people to prepare tax returns, which would not be a good idea, but we could do that. Is that not the case, Erin, is that why you have to be extra careful?

Erin Collins: Yeah. I think, again, there are some good intentioned folks out there that are helping their neighbors or families or loved ones, but they may, no offense, not be familiar with the tax laws. I’m more concerned about those who are unscrupulous, people who are taking advantage of taxpayers. And unfortunately there are many of those individuals out there. There’s something that’s referred to as a PTIN. I think it’s your professional tax identification number is what it stands for. If your return preparer doesn’t have a PTIN that would be a red flag to you because the taxpayer or the preparation folks have to put that on the return, at the bottom of the return if you sign it and also your return preparer signs it. So if the person doesn’t want to sign it, there’s probably a reason and you might want to get up and walk away.

Sandy Block: So Erin, one thing that I’ve reported on through the years. And if anybody stays up late, who watches late night TV will see ads saying, "We can reduce your IRS debt. We can make your IRS tax bill go away." And I think what they’re referring to is a legitimate program called offer in compromise. But, it’s a lot harder to get that than some of these commercials imply. And a lot of these companies, as I understand it, just basically charge you a fee and then never get the offer. Could you talk a little bit about that?

Erin Collins: Yeah. Again, if you are going to use someone to assist you in the offer in compromise program, you want to make sure that they are on the up and up, so to speak. You don’t want people who can over promise pennies on the dollar and under deliver, and then charge you on top of it. So again, these are companies, there are a lot of legitimate folks out there. A lot of firms that do offer in compromise and assist taxpayers. And then there’s the others that we would prefer you not go to. So IRS tries to identify if there’s potential problems. In fact, I know we are currently as an organization or agency looking at that issue across the board so that we can make sure we get useful information out to taxpayers. But yes, you can do it yourself. You can do it with the assistance of TAS or you can get a professional to help you. But be wary of those who make very large promises and have a price tag attached to it.

Sandy Block: I think anytime you hear pennies on the dollar it’s probably a big red flag, right?

Erin Collins: Yeah. And you know I hate to say it, there are some taxpayers who may end up pennies on the dollar based on their financial situation, but it’s not a standard you can apply across the board.

Sandy Block: Right.

Erin Collins: So again, be careful, the old saying, "If it’s too good it to be true, it probably is."

David Muhlbaum: So Erin, this question of trust, who can you trust to help you with your taxes? Do you or your advocates ever, or your staff ever find essentially pushback, because at the end of the day, you’re an IRS employee? And as we discussed, there is this independence built into your office, but, you might have to do some convincing of people, right?

Erin Collins: Well, yes, that’s hence the term advocacy, but I don’t believe we’re advocating for positions that we do not believe are correct. So if a taxpayer comes to us and wants to argue that the moon is purple, we would probably not recommend we take that position with the IRS because A) we think it’s wrong and B) it would not be successful. So we work with the taxpayer to get the best possible facts and position when we work with the IRS. So in essence, I would like to think of us as trusted, sort of, advisors or trusted advocates because really that is what we’re doing for the taxpayers. We’re working with the IRS and pushing what we think is the correct position.

David Muhlbaum: Excellent. Maybe you could put another T in the acronym, you could be "Trusted Taxpayer Advocate Service" because we’re all about acronyms here. On that acronymic, Washington note, I’m curious if since you sometimes deal with things that are systemic problems with the IRS, rather not the problem of the individual taxpayer but a group of taxpayers, do you find yourself being pulled into the policy debates of how taxation should be implemented? That is, when it ends up in congressional testimony, how we all argue about that here.

Erin Collins: Well, it depends how you define that, but we push for administrative change. I lead the policy up to the Hill and Treasury, but I guess we push for policy in the sense of, we want fair treatment of taxpayer and we want the system to be fair and fairly implemented. So in that sense, if that’s a policy, yes, we do push for that. If it’s whether or not the tax rate should be 20% versus 30%, we normally stay out of that debate.

Sandy Block: But on that note, Erin, I know you don’t get involved in what tax rate should be and that sort of thing. But you do advocate for the IRS in terms of funding. You and your predecessor Nina Olson have argued for many years that the IRS is underfunded. Nobody wins votes by saying they want to give money to the IRS, but why is that important? And why is the IRS so underfunded?

Erin Collins: Yeah. I think the challenge is, and I look at not necessarily the IRS, but the impact to taxpayers. So what is the impact of underfunding the IRS with respect to service, with respect to fairly administering the tax laws. And that has been a real challenge for a number of years because the budget that Congress has every year has gone down about 20% over the last 10 years. Unfortunately, that means so have the IRS employees. I mean, you can’t have more employees without more budget. And the challenge is IRS has picked up additional work. So over the years and especially over the last two years, Congress has entrusted the IRS to do three rounds of the stimulus payments. They’ve done the monthly advance child tax credit payments, as well as a number of business benefits that they’ve done.

So they’re overtaxing, so to speak, the IRS’s abilities to process just not only the normal filing season, but all the additional work, with fewer employees and fewer budgets. So unfortunately service and taxpayers are paying the price. And when you think about, if you want to step back and look at the politics of this, the IRS brings in and I think the numbers about and 95% of the entire nation’s budget. So the monies that go through IRS and Treasury is what funds everything else that Congress does. So when you think about how important the IRS is, without a functioning IRS, it’s going to impact the function of our country of what we can do.

Sandy Block: Erin, that’s a great way to wrap up this conversation, and we really want to thank you for coming on to our podcast and for all the things that you do. Thanks again.

Erin Collins: Thank you so much.

David Muhlbaum: Thank you, Erin.

David Muhlbaum: That will just about do it for this episode of Your Money’s Worth. If you like what you heard, please sign up for more at Apple Podcasts or wherever you get your content. When you do, please give us a rating and a review. And if you’ve already subscribed, thanks. Please go back and add a rating and review. If you haven’t already to see the links we’ve mentioned in our show, along with other great Kiplinger content on the topics we’ve discussed, go to kiplinger.com/podcast. The episodes transcripts and links are all in there by date. And if you’re still here because you want to give us a piece of your mind, you can stay connected with us on Twitter, Facebook, Instagram, or by emailing us directly at podcast@kiplinger.com. Thanks for listening.

Time is running out if you haven't already filed your 2021 federal tax return. For most people, the tax return filing deadline is April 18 this year (residents of Maine and Massachusetts get one extra day). So, for all you tax procrastinators out there, it's time to get moving. One of the first things you should do is collect and organize your tax records. If you're going to file your own 1040, you should also check out tax software options. If you need more time to file your return, request a tax filing extension (although you'll still have to pay any tax you expect to owe). And, no matter when you fill out your 2021 tax return, you first want to familiarize yourself with the tax law changes that may impact it.

Many (but not all) of the new items on the 2021 1040 form come from the American Rescue Plan Act, which was enacted last March. This Covid-relief bill made changes to the child tax credit, child and dependent care credit, earned income tax credit, and more. Other changes stem from the expiration of earlier Covid-related provisions that expired at the end of 2020. There are a few modifications to some of the main 1040 schedules, too. And, of course, there are the normal inflation-based adjustments that occur every year.

There are many reasons why you should know and understanding these changes up front. First and foremost, it very well may result in a larger tax refund or a smaller tax bill. You're also likely to get through your return faster if you're already aware of any new twists and turns. If someone else prepares your 1040, it will be easier to catch any errors when you review the return. But since "Tax Day" is right around the corner, you don't have much time left to get up-to-speed on what's new and changed for your 2021 tax return. So take a look at our list below and study up now so you know what to look for before tackling your 1040.

"Tax Day" is the day that federal personal income tax returns are due. It was delayed the past two years because of COVID-19. In 2020, Tax Day was pushed back to July 15, and last year it was moved to May 17. This year, however, the tax return filing deadline is moved back to its normal spot on the calendar…well, sort of.

Federal income tax returns are normally due on April 15. But this year most 2021 tax returns aren't due until April 18. That's because of a holiday in the District of Columbia. If you live in Maine or Massachusetts, your federal return isn't due until April 19, thanks to a local holiday in those states. Victims of certain recent natural disaster can wait even longer to file their return.

There are some subtle, but important, changes to the 1040 form itself for 2021 tax returns. Generally, they're needed to account for changes to the tax laws that are discussed below. For instance, the line on page 1 of the 1040 used for reporting the $300 deduction for charitable cash contributions was moved down on the form so that the deduction no longer impacts your federal adjusted gross income (AGI). This is important because your federal AGI is used to calculate several other tax breaks and obligations. It's also used by many states as the starting point for determining your state income tax liability.

Lines 19 and 28 on page 2 of the 1040 form were also adjusted to account for the fact that the child tax credit is fully refundable for the 2021 tax year. Line 27 was also modified and expanded (including a new check box) to satisfy changes to the earned income tax credit. (See more about changes to the child tax credit and earned income credit below.)

The idea of having a postcard-size tax form has been totally abandoned, too. We see this in the expansion of Schedules 1, 2, and 3 that go with the 1040 form. For 2020 returns, each of these schedules fit on one page. Now, for 2021 tax returns, they're each two pages long. The extra length is due to various additions to income, "above-the-line" deductions, extra taxes, and less common credits now getting their own line on these forms instead of being lump together as an "other" item to include.

Approximately 90% of all taxpayers claim the standard deduction instead of itemized deductions. Fortunately, the standard deduction amounts you'll use on your 2021 tax return are larger than last year, thanks to the annual adjustment for inflation. For the 1040 form you'll complete this year, married couples filing a joint return can claim a $25,100 standard deduction. That's a $300 increase over the 2020 tax year amount. For each spouse 65 years of age or older, you can tack on an additional $1,350 ($1,300 for 2020).

Single filers can claim a $12,550 standard deduction on their 2021 tax return ($12,400 for 2020). That jumps to $14,250 if you're at least 65 years old ($14,050 for 2020).

For head-of-household filers, the standard deduction for 2021 tax returns is $18,800 ($18,650 for 2020), plus an additional $1,700 if they're at least 65 years old.

Regardless of their filing status, blind people can add an additional $1,350 to their 2021 standard deduction ($1,700 if they're unmarried and not a surviving spouse).

The tax rates you'll see on your 2021 tax return are the same as they were last year: 10%, 12%, 22%, 24%, 32%, 35% and 37%. However, the income ranges that apply to each tax rate bracket have changed. Use the tables below to find the appropriate tax bracket for your 2021 return. It's based on your filing status and taxable income (Line 15 of your 1040 form).

Remember, though, that the tax rate associated with the bracket you fall into doesn't apply to all your income. It only applies to the amount of your taxable income that's within the bracket's range. So, for example, if you're single with $50,000 of taxable income in 2021, only the last $9,475 of your taxable income is taxed at the 22% rate ($50,000 - $40,525 = $9,475). The rest is taxed at either the 10% or 12% rate.

2021 Tax Brackets for Single Filers and Married Couples Filing Jointly

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2021 Tax Brackets for Married Couples Filing Separately and Head-of-Household Filers

If you hold on to a capital asset (e.g., stocks, bonds, real estate, art, etc.) for at least one year, any gains from the sale of the asset are taxed at a lower capital gains rate – either 0%, 15%, or 20%. The same rates apply to qualified dividends. Which rate applies to you depends on your taxable income.

For your 2021 federal income tax return, the 0% rate applies if you're single with taxable income up to $40,400 ($40,000 for 2020), a head-of-household filer with taxable income up to $54,100 ($53,600 for 2020), or a married couple filing a joint return with up to $80,800 of taxable income ($80,000 for 2020).

The 20% rate kicks in at $445,851 of taxable income for single filers ($441,451 for 2020), $473,751 for head-of-household filers ($469,051 for 2020), and $501,601 for joint filers ($496,601 for 2020).

If your taxable income falls between the 0% and 20% thresholds for your filing status, then the 15% rate applies.

As mentioned above, the $300 deduction for cash contributions to charity no longer affects your federal AGI. There's also another important change to this deduction for 2021 tax year returns – married couples can now deduct up to $600. For 2020 returns, married couples who filed jointly could only deduct $300. However, one deduction is allowed per person now, which means each spouse can deduct up to $300 on a joint 2021 return.

Note that this deduction is only available if you claim the standard deduction. It also expired at the end of 2021, so you won't be able to claim it on your 2022 return.

Several significant upgrades to the 2021 earned income tax credit (EITC) were made by the American Rescue Plan Act. The biggest changes will allow more childless workers to claim the EITC on their 2021 tax return. For one thing, the minimum age for claiming the credit without a qualifying child is lowered from 25 to 19 (except for certain full-time students). Workers over the age of 65 can claim the credit on their 2021 return, too. The maximum credit available for workers without a qualifying child also jumps from $543 to $1,502. Expanded eligibility rules for former foster youth and homeless youth were put in place for the 2021 tax year as well.

While the modified rules listed above for childless workers only apply for the 2021 tax year, the American Rescue Plan Act made a few other changes to the EITC that are permanent. For example, the $3,650 limit on a worker's investment income is bumped up to $10,000, and the cap will be adjusted for inflation each year going forward. In addition, certain married couples who are separated can now claim the credit on separate tax returns. And certain workers who can't satisfy the EITC identification requirements for their children can now qualify for the credit as a childless worker.

Finally, as with the 2020 EITC, you can use your 2019 earned income to calculate your 2021 EITC if it's more than your 2021 earned income. Since this can increase or decrease your EITC, calculate the credit using both your 2019 and 2021 earned income to see which method will save you the most money.

To calculate your EITC, complete the worksheets associated with Lines 27a, 27b, and 27c of Form 1040 in the instructions for Form 1040. If you have a qualifying child, also complete Schedule EIC and attach it to your 1040 form.

As with the earned income tax credit, the American Rescue Plan Act made major improvements to the child tax credit for the 2021 tax year. For instance, the credit amount for 2021 tax returns was increased from $2,000-per-child to $3,000-per-child six to 17 years of age and to $3,600-per-child five years old and younger. However, the extra $1,000 or $1,600 is phased out for single filers with a federal AGI above $75,000, head-of-household filers with a federal AGI above $112,500, and joint filers with a federal AGI above $150,000. The credit is further reduced under pre-existing rules for single and head-of-household filers with a federal AGI above $200,000 and married couples filing jointly with a federal AGI above $400,000.

Any child tax credit claimed on your 2021 return is also fully refundable for most parents, even if you don't have any earned income (normally, the credit is only partially refundable – up to $1,400-per-child – and you must have at least $2,500 of earned income). Children who are 17 years old also qualify for the 2021 credit (child normally must be 16 or younger to qualify). Finally, unless you opted-out of the payments, families received 50% of their estimated 2021 child tax credit amount in advance through monthly payments sent between July 15 and December 15 last year.

To calculate the child tax credit allowed on your 2021 tax return, you must subtract the monthly payments you received last year from the total credit that you're otherwise entitled to claim for the 2021 tax year. (The IRS will send you a Letter 6419 showing the amount paid to you in monthly payments.) If the total child tax credit amount is more than your combined monthly payments, you can claim the excess amount as a credit on your return. However, if the total credit amount is less than your payments, you might have to pay back the extra child credit payments.

Use Schedule 8812 to reconcile the advance payments you received last year with the actual child tax credit you're entitled to claim on your 1040 form, and to see if you need to pay back any payments (they will be paid back in the form of an additional tax calculated Part III of the schedule).

For more information about claiming the 2021 credit, see Child Tax Credit FAQs for Your 2021 Tax Return.

Parents benefiting from the child tax credit enhancements may be able to cut their 2021 tax bill even further because of big changes to the child and dependent care credit made by the American Rescue Plan Act. For example, the maximum credit is increased from 35% to 50% of eligible expenses for the 2021 tax year. Plus, the credit percentage won't be reduced for families making less than $125,000 a year (instead of $15,000 per year), and all taxpayers earning less than $438,000 can claim at least a partial credit on their 2021 return.

The 2021 credit applies to more child or dependent care expenses, too. The credit percentage is applied to as much as $8,000 of eligible expenses for one child/disabled person and up to $16,000 of expenses for two or more (the amounts are usually $3,000 and $6,000, respectively). That means the total credit amount can be as high as $4,000 if you have just one child/disabled person and $8,000 if you have more ($1,050 and $2,100, respectively, for 2020).

The child and dependent care credit for the 2021 tax year is also fully refundable for most people (it's usually a nonrefundable credit). Form 2441 is used to calculate the credit.

See Your Child Care Tax Credit May Be Bigger on Your 2021 Tax Return for details.

The American Rescue Plan Act improved the premium tax credit for 2021 and 2022 to lower premiums for people who buy health insurance through an Obamacare exchange (e.g., HealthCare.gov) on their own. The credit amount was increased for eligible taxpayers by reducing the percentage of annual income that households are required to contribute toward their health insurance premium. The law also allowed the credit to be claimed by people with an income above 400% of the federal poverty line.

For certain people who purchase health insurance through an exchange, an estimated premium tax credit amount is paid in advance to the insurance company. If advance payments are made on your behalf, you must reconcile the credit and the advance payments when you file your tax return. If the advance payments are greater than the actual allowable credit, the difference (subject to certain repayment caps) usually must be paid back. However, the American Rescue Plan Act eliminated the repayment requirement – but only for the 2020 tax year. As a result, excess advance payments made in 2021 will have to be repaid when you file your 2021 tax return.

Use Form 8962 to calculate your premium tax credit and reconcile it with any advance payments. Also make sure you submit Form 8962 with the rest of your 2021 tax return.

The nonrefundable credit for expenses related to the adoption of a child is a little larger for the 2021 tax year. For 1040 forms filed this year, the credit can be worth up to $14,440 ($14,300 for 2020). Plus, the full credit is available for a special-needs adoption, even if it costs less.

The credit begins to phase out if your modified AGI is over $216,660 and it's eliminated altogether if your modified AGI reaches $256,660 ($214,520 and $254,520, respectively, for 2020). To claim the credit, complete Form 8839 and report the credit amount on Line 6c of Schedule 3. Also submit Form 8839 with the rest of your 2021 tax return.

The income tax exclusion for company-paid adoption aid was also increased from $14,300 to $14,440 for the 2021 tax year.

The alternative minimum tax (AMT) was originally designed to hit only wealthier Americans. However, the AMT exemption amount wasn't always adjusted annual for inflation – but it is now. For the 2021 tax year, the AMT exemption jumped from $113,400 to $114,600 for married couples filing a joint return and from $72,900 to $73,600 for single and head-of-household filers.

The phase-out ranges for the AMT exemption are adjusted for inflation each year, too. For 2021 tax returns, the exemption is gradually reduced and can ultimately be eliminated if alternative minimum taxable income (AMTI) on a joint return is between $1,047,200 and $1,505,600 ($1,036,800 and $1,490,400 for 2020). For single and head-of-household filers, the 2021 phase-out range is $523,600 to $818,000 of AMTI ($518,400 to $810,000 for 2020). The 2021 range for married people filing a separate return is $523,600 to $752,800 ($518,400 to $745,200 for 2020).

In addition, the 28% AMT tax rate doesn't kick on 2021 tax returns until you hit $199,900 of AMTI. That's an increase over the 2020 threshold, which was AMTI of $197,900 or more.

Use Form 6251 to calculate your AMT and file the form with your 2021 Form 1040.

Say goodbye to the tuition and fees deduction, which was worth up to $4,000 per year. It was repealed starting with the 2021 tax year.

On the bright side, the phase-out thresholds for the lifetime learning credit were increased. They're now the same as the phase-out amounts for the American Opportunity credit. So, beginning with 2021 tax returns, the lifetime learning credit is gradually reduced to zero for joint filers with a modified AGI from $160,000 to $180,000 ($118,000 to $138,000 for 2020) and single filers with a modified AGI between $80,000 to $90,000 ($59,000 and $69,000 for 2020). If you're claiming either the lifetime learning credit or the American Opportunity credit, you must first complete Form 8863 and then attach it to your 1040 form.

The phase-out ranges are also higher in 2021 for the exclusion of interest on Series EE and I savings bonds redeemed to help pay for tuition and fees for college, graduate school, or vocational school. For 2021 tax returns, the exclusion starts to phase out for joint filers with a modified AGI exceeding $124,800 and for other people with a modified AGI of $83,200 or more ($123,550 and $82,350, respectively, for 2020). The exclusion is totally phased-out for joint filers with a modified AGI of $154,800 or more and for other taxpayers with a modified AGI of at least $98,200 ($153,550 and $97,350, respectively, for 2020). You must compete Form 8815 to claim the exclusion and then report the exclusion amount on Line 3 of Schedule B.

The recovery rebate credit is back, but with one important change. As you may recall, this credit made its first appearance on the 2020 Form 1040 and was available for people who didn't receive a first or second stimulus check, or who didn't receive the full stimulus check amount they were entitled to.

For 2021 tax returns, the credit is for people who didn't receive a third stimulus check (or didn't receive the full amount). Those payments were for up to $1,400, plus an additional $1,400 for each dependent in your family. Similar to the monthly child tax credit payments the IRS sent last year, your third stimulus check was an advance payment of the recovery rebate credit. As a result, when you file your 2021 return, you must reduce the recovery rebate credit you're entitled to claim by the amount of your third stimulus check. (The IRS will send you a Letter 6475 showing the amount of your third stimulus check.) For most people, your third stimulus check payment will equal the 2021 recovery rebate credit allowed. If that's the case for you, the credit will be reduced to zero. But if your third stimulus check was less than the credit, your recovery rebate credit will equal the difference. And what if your third stimulus check was more than your 2021 recovery rebate credit? You get to keep the difference!

Use our Third Stimulus Check Calculator to see you how large your third stimulus check should have been.

Two tax breaks that encourage saving for retirement were tweaked for the 2021 tax year. In both cases, the changes are the result of annual adjustments for inflation.

The first retirement-related change for 2021 tax returns is to the deduction for contributions to a traditional IRA. If either you or your spouse was covered by an employer retirement plan, your IRA deduction may be reduced (potentially to zero), depending on your filing status and income. The income levels that trigger a reduction for 2021 returns have been adjusted. For married couples filing a joint return, the deduction is gradually phased out if you're modified AGI is between $105,000 and $125,000 (between $104,000 and $124,000 for 2020 returns). For single and head-of-household filers, the phase-out range is from $66,000 to $76,000 ($65,000 to $75,000 for 2020).

If only one spouse is covered by a retirement plan at work, the deduction is reduced if the couple's modified AGI exceeds $198,000, and it's totally eliminated if their modified AGI hits $208,000 ($196,000 and $206,000, respectively, for 2020). (NOTE: If you made any nondeductible contributions to a traditional IRA for 2021, report them on Form 8606.)

The second change is to the "Saver's Credit," which encourages lower- and middle-income people to save for retirement. The credit is allowed for either 10%, 20%, or 50% of the first $2,000 ($4,000 for joint filers) you contribute to retirement accounts, depending on your filing status and income. The lower your income, the higher the percentage you can use to calculate the credit. For 2021 tax returns, single filers, married people filing a separate return, and qualified widow(er)s can claim a 50% credit if their AGI is $19,750 or less ($19,500 for 2020). They can claim a 20% credit if their AGI is from $19,751 to $21,500 ($19,501 to $21,250 for 2020), and the 10% credit is available if their AGI is from $21,501 to $33,000 ($21,251 to $32,500).

For married couples filing a joint return, the 50% credit is available if their AGI doesn't exceed $39,500 ($39,000 for 2020), the 20% credit is available if their AGI is from $39,501 to $43,000 ($39,001 to $42,500 for 2020), and the 10% credit is available if their AGI is from $43,001 to $66,000 ($42,501 to $65,000 for 2020).

The 50% credit can be claimed by head-of-household filers with an AGI of $29,625 or less ($29,250 for 2020), while they can claim the 20% credit with an AGI from $29,626 to $32,250 ($29,251 to $31,875 for 2020) and the 10% credit with an AGI from $32,251 to $49,500 ($31,876 to $48,750 for 2020).

To claim the credit, complete Form 8880 and send it to the IRS with your 1040 form.

For 2021 tax returns, standard mileage rate for business driving is 56¢ a mile – that's less than the 57.5¢ per mile for 2020. The rate for medical travel and military moves also dropped for the 2021 tax year from 17¢ to 16¢ a mile.

The mileage rate for charitable driving doesn't change from year-to-year. So, it stayed put at 14¢ a mile for 2021 returns.

Self-employed taxpayers can claim some tax breaks that other people can't. And some of those tax breaks are tweaked for 2021 tax returns. For instance, the sick or family leave credits self-employed people could claim on their 2020 tax return if they missed work for Covid-related reasons was extended for 2021 – but not for the full year. For 2021 returns, the credits are only available for qualified absences through September 30, 2021. In addition, the family leave credit can only be claimed for 50 days missed from January 1 to March 31, 2021, but it can be claimed for up to 60 days missed from April 1 to September 30, 2021. Self-employed people should use Form 7202 to calculate the sick and family leave credits they're entitled to claim on their 2021 1040 form.

The income threshold for limits on the 20% deduction for qualified business income were also adjusted for the 2021 tax year. The taxable income threshold is $329,800 for married couples filing a joint return, $164,925 for married people filing a separate return, and $164,900 for all others ($326,600 for joint filers and $163,300 for all others for 2020 returns). Use Form 8995 or Form 8995-A to figure your qualified business income deduction.

Self-employed people who are wining and dining clients can take advantage of another perk for both the 2021 and 2022 tax years. The deduction for business meals at a restaurant is increased from 50% to 100%. This deduction is claimed on Line 24b of Schedule C.

If a self-employed person had a Paycheck Protection Program (PPP) loan forgiven in 2021, the canceled debt is not taxable income and doesn't have to be reported on Form 1040. However, if you have tax-exempt income resulting from the discharge of a PPP loan last year, you must attach a statement to your 2021 tax return that includes certain information related to your PPP loan (see the instructions to Form 1040 for details). You should also write "RP2021-48" at the top of the statement.

Unfortunately, there are also a couple of negative changes that may increase the 2021 tax bill for some self-employed taxpayers. First, none of the self-employment taxes owed for the 2021 tax year can be deferred as they could on 2020 returns. In fact, half of any 2020 tax deferred had to be paid by the end of 2021, while the rest is due by the end of 2022. Second, the cap on deductible business losses is back after being suspended for the 2018 to 2020 tax years. For 2021 tax returns, the inflation-adjusted limit is $262,000 ($524,000 for married couples filing a joint return). Form 461 is used to calculate a self-employed taxpayer's limitation on business losses.

The $10,200 exemption for unemployment compensation in effect for the 2020 tax year is no more. Under the American Rescue Plan Act, which authorized the exemption for families with a federal AGI less than $150,000, the tax break was for one year only.

As a result, any unemployment compensation you received last year will be fully taxed on your 2021 tax return. Report the benefits on Line 7 of Schedule 1.

If you're paying for long-term care insurance, you might be able to deduct a portion of your premiums – and the deduction maximums, which are based on age, are higher for the 2021 tax year. Taxpayers age 71 or older can deduct up to $5,640 per person on their 2021 tax return ($5,430 for 2020). If you're 61 to 70 years old, you can deduct as much as $4,520 of your premiums ($4,350 for 2020). Anyone 51 to 60 years old can write-off up to $1,690 ($1,630 for 2020). For people 41 to 50 years of age, the max is $850 ($810 for 2020). And, finally, the maximum deduction is $450 if you're 40 or younger ($430 for 2020).

Long-term care insurance premiums are only deductible as medical expenses for most people, which means they must itemize deductions on Schedule A to claim the tax break. However, self-employed people can deduct their premiums on Line 17 of Schedule 1 without having to itemize.

Before the 2021 tax year, canceled or forgiven student loan debt was considered taxable income. However, from 2021 to 2025, most canceled student loan debt that was incurred for a post-secondary education is tax-free. Therefore, you shouldn't report qualified student loan debt that was canceled last year on Line 8c of Schedule 1.

The IRS has also told lenders and student loan servicer providers not to file Form 1099-C or submit payee statements for qualified student loan debt that's discharged, canceled, or otherwise forgiven through 2025. So, if you do receive a 1099-C form reporting discharged student loan debt that you believe is not taxable, contact the lender or loan service provider that issued the form and ask them to send a corrected form.

Americans working abroad may be able to exclude all or a portion of their foreign-earned income from taxable income on their U.S. tax return. For 2021 returns, the maximum exclusion amount is $1,100 higher than it was for the 2020 tax year – it jumped from $107,600 to $108,700.

In addition to the foreign earned income exclusion, taxpayers living abroad may also be able to claim an exclusion or deduction for their foreign housing. For the 2021 tax year, the maximum foreign housing exclusion is generally $15,218 ($15,064 for 2020), although it can be higher in certain high-cost areas.

Use Form 2555 to figure both your foreign earned income exclusion and foreign housing exclusion/deduction.