Tax return 2021: the deadline is approaching for taxpayers who requested an extension

The deadline for taxpayers who requested an extension to file their tax returns is approaching, and the Internal Revenue Service (IRS) makes a recommendation: do not leave it to the last minute.

October 17 is the deadline for those who requested and obtained the extension to comply with the submission of their 2021 tax return and avoid a financial penalty.

According to the IRS, at least 19 million taxpayers have pending their 2021 tax return, and have less than two weeks to comply with their tax obligations.

Just as it did when the April 18 deadline to file on time was looming, the IRS calls on taxpayers to get everything ready and comply before the extension deadline.

“Avoid the last-minute rush to file your returns,” notes the federal tax office regarding meeting the deadline.

However, also note that the IRS last week announced a series of deadline extensions for residents affected by the passage of Hurricane Ian in Florida.

What is the easiest way to file your return?

If you still don’t have your return ready and are fighting against time, the IRS has some tips to help you meet the deadline and avoid penalties.

The easiest thing to do is to file electronically before the deadline, and if you choose to do it this way, the office also stresses that it’s the fastest way to get a refund.

The IRS has faced several delays with millions of returns pending processing, which has also slowed down the mailing of refunds to taxpayers.

Taxpayers who requested an extension were given more time to file more in-depth tax returns, but also to take advantage of any tax benefits to which they may be entitled.

In this case, taxpayers who have pending to file should remember that some deductions and credits are available, which can help them with their returns.

The IRS warned that if the October 17 deadline is missed, taxpayers could be penalized with fines of an additional 5% on the total amount due each month, up to a maximum of 25%.

Requests for extensions grew in 2022

The challenges posed to taxpayers by the pandemic have left a growing number of extension requests, the IRS acknowledged.

According to its overall data, 1 in 10 taxpayers requested an extension to defer their tax filing.

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However, by 2022, the proportion increased to 2 in 10, mainly because of the complexities of filing for the stimulus checks provided as relief from the COVID-19 pandemic and the Child Tax Credits.

What to consider for your return

The IRS has explained that you do not need to pay taxes on the stimulus checks you received in 2021; however, you should be careful about the amounts you report on these grants, as they must match the IRS’s data.

Amounts reported for assistance checks, including the Child Tax Credit, should be carefully recorded on Schedule 8812 and Form 1040.