The 2022 federal income tax deadline for most individual taxpayers is April 18, 2023!

In order to avoid penalties and interest, your return must be filed and all tax must be paid by the due date. If you are filing by mail, the return must be postmarked by the due date.

Should I file an extension?

If you are struggling to get your return together, there is an option to file an extension. An extension gives you an extra six months to file (for tax-year 2022, the extension deadline is October 16, 2023).

However, filing an extension just gives you extra time to file, it does not give you extra time to pay. If upon filing an extension you owe additional tax, you will also owe penalties and interest for not paying by the April 18 deadline. If you are unsure if or how much you will owe, a tax payment can be made with the extension.

Procedures for state income tax extensions vary. Some states require a form to be filed, while others do not. For example, Virginia does not require a specific form to be filed, but any tax must still be paid by the initial deadline.

Are state tax filing deadlines the same as the federal deadline?

Most state tax filing deadlines are the same as the federal tax deadline. However, some states have slightly different deadlines. For example, Virginia’s tax filing deadline is May 1.

Investment account contribution deadlines

Also, as we discussed last week, keep in mind that the contribution deadlines for several popular types of investment accounts are the tax filing deadline (April 18, 2023):

• Traditional IRA

• Roth IRA

• Health Savings Account (HSA)

If you have any comments, questions, or ideas for future posts, please let me know

I hope you found this post helpful and educational. If you have any comments, questions, or ideas for future posts, please let me know. You can reach me directly via email at crawford@ulmerfinancial.com.