Why does ‘Tax Day’ fall a bit later this April? A local holiday is to thank
Procrastinators, rejoice. A coincidence on the calendar means you have a few extra days to get your taxes done this tax season.
“Tax Day,” which typically falls on April 15, is actually set for April 18 this year for folks in most states, including North Carolina. The rare mini-extension, per the IRS, is a consequence of a local holiday in Washington.
And it means you’ll have one additional weekend to get your return filed before facing the consequences of being late, or to file for an extension to give yourself more time to finish.
Here’s what to know about 2022 tax deadlines, including how to get an extension if three extra days isn’t enough:
Why is Tax Day on the 18th this year?
Tax Day falls on April 18 this year because Emancipation Day, a holiday in Washington marking the end of slavery in the District of Columbia, will be observed on April 15 this year.
“By law, Washington, D.C., holidays impact tax deadlines for everyone in the same way federal holidays do,” the IRS explained in a statement. And that means the 2022 filing deadline is pushed from its normal home, the 15th, to the next business day, the 18th.
Additionally, residents of Maine and Massachusetts are getting another extra day, because the Patriots’ Day holiday falls on April 18 in those states.
What happens if you file taxes late?
The consequences you’ll face if you file your federal taxes late depend on whether or not you’re getting a refund, according to the tax prep company TurboTax.
“If you have a refund coming from the IRS — as about three out of four taxpayers do every year — then there is no penalty for failing to file your tax return by the deadline, even if you don’t ask for an extension,” TurboTax says.
Still, the company adds, filing late will delay the arrival of your refund and may prevent you from making some tax elections when filing.
If you owe money to the IRS and haven’t filed and paid by April 18, “you’ll likely end up owing a late payment penalty of 0.5% per month, or fraction thereof, until the tax is paid.” And “you’ll also likely owe interest on whatever amount you didn’t pay by the filing deadline.”
“If you didn’t get an extension, you are also looking at a late filing penalty of 5% of the unpaid tax per month, plus interest,” TurboTax says.
At the state level in North Carolina, there are also potential penalties for being late on your taxes.
“Returns filed after the due date are subject to a failure to file penalty of 5% of the net tax due for each month, or part of a month, the return is late (maximum 25% of the additional tax),” the state Department of Revenue says.
How to file a tax extension 2022
The deadline to file for an extension with the IRS is April 18 this year.
To do so, you need to fill out an extension form at irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return that includes an estimate of your tax liability.
According to the IRS, an extension will give the taxpayer until Oct. 17, 2022 to file returns.
Still, the agency adds, “an extension of time to file your return does not grant you any extension of time to pay your taxes.” That means you should “pay any amount due” when you file for your extension.
In North Carolina, “a taxpayer who is granted an automatic extension to file a federal income tax return will be granted an automatic extension to file the corresponding North Carolina income tax return,” the state Department of Revenue says.
You can also request a six-month extension on your state tax return at ncdor.gov/taxes-forms/extensions.
This story was originally published April 13, 2022 at 12:07 PM.
