The tax day is usually around April 15 set by the Internal Revenue Service (IRS) in the US. The tax day is the deadline to file for the income tax returns. But it is not necessary that every year the tax day would be like the traditional tax date; the deadline can be extended too. Generally, this happens to accommodate the holidays or extreme weather conditions.
The New Year has just gone by and the IRS has officially announced the opening of the tax filing season on January 19, 2016. After this announcement, almost all the tax payers must be pondering ‘when is the last day to do taxes?’ They are actually concerned about the deadline of the tax filing season. But before we go into the details, you should understand the ins and outs of the tax day and how it is treated in the US.
Tax Day is Treated Like Other Common Days – Ins and Outs of the Tax Day
Usually people think that tax day is a big day and unlike any other days in the US. But the tax day is treated like a common day. Also, there is no federal public holiday in the US on this day. The schools, stores, offices, organizations and other businesses and also public transports run like usual days. There is no extra congestion on the highways as well.
Furthermore, the people simply report to the IRS of all the income they received in the previous year. For instance, when you go to file the tax returns for the tax season 2016, you will report for the income you received in the year 2015. Keep in mind that you will not report for the income you received in 2016 for the services rendered in the previous, 2015. Instead, you will be reporting for that income in the year, 2017.
Those who worry about ‘when is the last day to do taxes’ must remember that not everyone has to file for the taxes. You do not have to file for the tax returns until you qualify for it. Usually, the veterans, low income families and pensioners do not file returns because they do not wish for certain types of income subsidy. Also, there are some people who wait until the last moment and procrastinate and question ‘when is the last day to do taxes’. On the other hand, there are some people who try to file their tax returns early to avoid penalties and the scary consequences.
Moreover, the income tax returns are filed either electronically or on a paper. But most of the US tax payers try to save their time and file tax returns via Internet (efile) as it is one of the most efficient ways to file taxes and saves time and cost. Not only this, electronic tax filing reduces the risk of mistakes being made and minimizes the chances of the documents being lost in the post.
Tax Day for Tax Season 2016 – April 18, 2016
The IRS has officially announced the opening and deadline of the tax season, 2016. So, now those who worry about the deadline and question, ‘when is the last day to do taxes’ then, they must put mark April 18, 2016 as the important date for the tax season 2016. The ones who want to avoid paying fines and penalties should try to file their tax return for the year 2015 until Monday, April 18, 2016. You must call your local tax preparer and professionals to prepare for your taxes. Also, start finding and assembling all your important documents for filing tax returns. But most of the tax payers are wondering why the deadline has been delayed.
Tax Day Will Come 3 Days Later in 2016 – Here is Why Tax Day is Delayed in 2016
Each year the tax filing season follows the traditional trend i.e. the tax season closes on April 15 every year. But this year the deadline and official closing of the tax season has set to be on Monday, April 18, 2016. Though, this may sound perfect to the procrastinators. They are getting three extra days to gather all their documents and paperwork to file for their tax returns.
The tax payers should thank the Washington, D.C. for the delayed tax deadline. On Friday, April 15, 2016, Washington will celebrate Emancipation Day. This day is actually treated as a federal holiday which is why all federal offices including the IRS and the related tax authorities will remain close on Friday, April 15, 2016.
Generally, the Emancipation Day is celebrated on April 16. This day is celebrated due to the free of Washington; D.C. President Abraham Lincoln signed a law and passed a bill to end the slavery in the state. Since, April 16 is coming on Saturday for this reason the Emancipation Day cannot be celebrated therefore, now it will be celebrated on Friday, April 15, 2016. Due to this reason, the tax day has been pushed to Monday, April 18, 2016.
So, now those who are trying to identify the answer to the question, ‘when is the last day to do taxes’ should not procrastinate because of the three extra days. Instead, the tax payers should prepare with the paperwork and start visiting the tax preparer prior to April 18, 2016. It is always better to be proactive than to procrastinate.
All that You Need To Know About Tax Filing and Tax Filing Forms
Tax payers who ask ‘when is the last day to do taxes?’ usually do not know how to file their income taxes. Prior to filing income tax returns, all tax payers should keep in mind that there are a number of income tax returns. In addition, all of those income tax returns have a different purpose which is why all the tax payers need to understand about the different types of IRS tax filing forms. The tax filing forms prevent the tax payers from paying huge amount of taxes and help in keeping the tax bills lower. But you must not pick any tax filing form without knowing about it. Only the right form which fits best to your circumstances can help you in saving costs.
The tax filing forms are really confusing, those who question, ‘when is the last day to do taxes’ may not really know about the difference between the W-4 and W-2, or form 1040 and form 1099. These are technical matters which can only be explained by expert tax professionals and experts. Almost all the tax payers are unaware about the differences and correct usage of the forms. In order to choose a correct form before, you must first know its purpose. Let’s have a look to a few types of tax filing forms.
- Form W-2: This form is used for the wages and for filing tax returns for salaried employees. This is commonly known as Wage and Tax Statement form.
- Form W-4: This form is used before starting the employment. It is known as Employee’s Withholding Allowance Certificate form.
- Form W-4P: This is just like form W-4. But this form is used for pension and annuity payments to identify the correct amount of the deferral income tax returns. This is known as Withholding Certificate for Pension and Annuity Payments.
- Form 1040: This is one of the most common types of tax filing forms used by US individuals to file income tax returns.
- Form 1040EZ: This is also like form 1040, but it is mostly used by married or single individuals who do not have any dependents.
- Form 1040NR – EZ: This type of form is for the tax payers who are non residents aliens of the US and are without any dependents.
- Form 1040A: This is one of the tax filing forms which permit you to claim for more credits for instance, retirement savings contributions, child tax credit, education credits and including many others.
- Form NR: This is the form for the non residents. The non resident individuals can claim for the income tax return with the help of this form.
- Form 1099 – MISC: This form is for the ones who do freelancing or contact working and receive a minimum payment of $600 during the entire tax year.
- Form 1098: This form is used by the homeowners who pay mortgage and receive minimum $600 mortgage during the entire tax year. In addition, this form is known as Mortgage Interest Statement.
- Form 941: This form is for the employers who hold income tax returns from Social Security and Medicare tax from the employees. This form is commonly known as Employee’s Quarterly Federal Tax Return.
- Form 8962: This form is usually calculates the amount of credit the tax payers receive.
All tax payers are required to assemble all their documents and paperwork for the tax year 2016. Also, you must take guidance from an expert and credible tax preparer or a certified public accountant (CPA) in the US who can help you in identifying and choosing the correct form to file tax returns.
Income Tax Filing Deadlines
Indeed, the tax day is the closing of the tax season, Monday, April 18, 2016. But there is also an extended tax deadline and some more deadlines that all tax payers must keep in mind for the tax year 2016. Those who want to know the core of the question, ‘when is the last day to do taxes?’ should see to the tax filing deadlines occurring in the tax year calendar 2016, below.
· Individual Tax Returns | Tax Opening, Closing and Extended Deadline
As mentioned previously, the individuals are required to fill forms 1040, 1040NR, 1040A or 1040EZ on the opening tax season, Tuesday, January 19, 2016. The first deadline for them is Monday, April 18, 2016. Furthermore, the people living in Maine and Massachusetts can file for their tax returns on Tuesday, April 19, 2016. Those who are have a very busy schedule and worry about the question, ‘when is the last day to do taxes?’ need not worry, because the IRS has announced the extension deadline i.e. Monday, October 17, 2016.
· Partnerships Tax Returns | Tax Opening, Closing and Extended Deadline
The tax payers who have formed partnership businesses are required to fill form 1065 on Tuesday, January 19, 2016. As per announced by the IRS, the tax day or the tax deadline remains the same for the partnerships firms as well, Monday, April 18, 2016. Those tax payers who have formed partnership business in Massachusetts and Maine can file for their income tax returns on Tuesday, April 2016. Moreover, the business owners who are too busy with the core business activities and functions and question, ‘when is the last day to do taxes’ need not worry, because the IRS has set an extended deadline for the partnership businesses, Thursday, September 15, 2016.
· Trust and Estate Tax Returns | Tax Opening, Closing and Extended Deadline
The tax payers belonging to trust and estate industries need to file tax returns after filling form 1041 on Tuesday, January 19, 2016. In addition, the first tax closing deadline for the tax year 2016 is Monday, April 18, 2016. Though, the rule remains the same for tax deadline, for the tax payers living in Massachusetts and Maine like other industry tax payers, Tuesday, April 19, 2016. The tax payers who are busy must keep in mind that they have a chance to file for their tax returns due to the tax extended tax deadline, Thursday, September 15, 2016.
· Corporation Income Tax Returns | Tax Opening, Closing and Extended Deadline
The tax payers who belong to corporations need to file income tax returns via form 1120 and 1120-S on the tax opening day, Tuesday, January 19, 2016. But the corporation tax payers need to be attentive as their tax deadline to file for their income taxes is unlike the standard deadline. Their first deadline to file the income tax returns is Tuesday, March 15, 2016. Also, the people living in Maine and Massachusetts are required to file their taxes on the same day. The tax day for the corporation tax payers is also early, Thursday, September 15, 2016 unlike the affirmed deadline, Monday, April 18, 2016.
· Foreign Bank Account Tax Returns | Tax Opening, Closing and Extended Deadline
The tax payers who have opened foreign bank accounts are required to file income tax returns on Tuesday, January 19, 2016. These tax payers may also question, ‘when is the last day to do taxes’, so they must remember that their last day to file taxes is Thursday, June 30, 2016. Since their time is limited and short as a result they should be really very quick and fats to file for their tax returns. Unfortunately, they do not have any deadline extensions also and may face severe penalties if they do not file the taxes promptly.
Those who question ‘when is the last day to do taxes?’ may wonder if the extended deadline accepts both, the paper and electronic tax filing. But they must remember that the extended deadline has certain limits. It will only let the tax payers file electronically and will not accept any paper filed tax returns. So, all the tax payers must first understand the deadline limits then prepare for their tax filing.
What is the IRS Penalty for Filing Tax Returns Late? – Scary Consequences
Those who are procrastinating and want to know ‘when is the last day to do taxes?’ must not forget that there are severe and very scary consequences for filing late tax returns. The IRS treats each and every late filer individually and calculates all the interest and penalties on case by case basis. As soon as they receive your returns, they will see through your tax filing date and figure your penalties in case of late filing then you will receive a separate bill form the IRS. We have come up with some of the penalties which may scare the ones who procrastinate in filing taxes.
- The unclaimed tax returns are fortified and become the property of the US Treasury after 3 years. This means that you will not get any tax benefit if you do not file for tax returns.
- There is a 5% penalty on the additional taxes amount for every month if you file late returns and that may be up to maximum 25% of penalty.
- Those tax payers who file for tax returns after 60 days of the due date, they will be required to pay a minimum penalty of $135 or 100% of their unpaid taxes.
- The late filing penalty can be 10 times higher than the late payment penalty.
- If the tax payers continuously ignore the IRS tax bill, the situation can get even worse and the authorities can send arrest warrants to them.
How Can You Safeguard From Penalties – File Tax Returns Early
Now the procrastinating tax payers who question, ‘when is the last day to do taxes?’ may worry about the IRS penalties. But there is a way to safeguard those tax payers from scary and heavy penalties. They should file their tax returns as soon as possible. On receiving the W-2 from their employer and Form 1099 or 1040 from the investors, the tax payers should immediately prepare for their tax filing process with the guidance of the tax payers.
Filing early can save you from big problems, huge penalties and arrest warrants. Here are certain merits of filing tax returns early.
- You can get faster refunds if have overpaid your taxes
- You can get done with the tax filing earlier unlike others
- There is no possibility of getting late when you file early
- The IRS does not levy high interests upon you
- You do not likely make mistakes when you file early
Now that you know that answer to the question, ‘when is the last day to do taxes?’ you must not procrastinate and file at the last moment. Also, you must take guidance from your local tax preparer for a seamless tax filing procedure. Good Luck!