Individuals who earn a taxable income are obligated to pay a certain tax rate. Our tax money goes to all government-related services, like police enforcement, road work, housing, education, etc., which essentially help build the nation.
When you pay taxes, you can choose between taking the standard deduction or itemizing your deductions. The standard deduction for single people and people married filing separately in 2022 is $12,950. For married people filing jointly, deductions are $25,900, and the head of household is $19,400.
When do I file my taxes for 2022?
The tax filing season opens on January 24th, 2022. That is when the IRS will start to process taxes. The final due date would be no later than midnight on April 18, 2023. There is an option where you can receive an extension until October 17, 2023.
How do I file my taxes?
Firstly, you should make sure you have the necessary documents gathered that you will need to start filing your taxes, which include:
- Social Security documents
- Income statements
- Other income statements
- Tax deduction records
- Charitable deductions
- Expense receipts
The easiest and most time-saving method to e-filing your taxes would be to do it online via the IRS page. You can simply create an account if you don’t already have an existing one registered and file your taxes for free. There are guided tax preparation services for you to make use of.
There are several tax software programs available to help with filing your taxes. You will need to pay a certain amount for the services, though.
Doing your taxes and getting them in on time is important if you want to avoid getting any penalties. In addition to penalties, the IRS may add interest to the outstanding amount. You can expect an additional 5% to be added to your tax amount for each month the tax return is late. This is known as the failure-to-file penalty.
If you have filed for an extension, you should be aware that you will still be charged interest on the outstanding tax. Some good news is that the penalty is capped at 25% of the due tax.
Can I be jailed for not filing taxes?
For the most part, not filing your taxes may result in penalties and interest being added to the outstanding amount. You won’t have to face jail time unless you are found guilty of tax evasion or if you haven’t declared all of your taxes.
How to access your tax refund
Before you file your tax return, you should ensure that there is a way in which the IRS can send your money to you. If you are registered with a bank, you may need your account and routing numbers. Alternatively, if you have a prepaid card that can accept deposits, make sure you have access to the card’s routing number and account number.
If you don’t have a bank account or prepaid card that accepts deposits, you may need to open one.
Categorised in: Tax Preparation