Taxes 2022: What to know ahead of the tax deadline

The clock is ticking as we approach the April 18 deadline to file taxes this season. If you’re one of the 30% of Americans who wait until the last minute to file your taxes, there are some things you need to know.

If you don’t think you will meet the deadline, you have options.

“It's really important to file an extension because you can get until October to file your taxes if you're really just not ready,” Kathy Pickering, chief tax officer at H&R Block, recently told Yahoo Finance Live (video above). “But an extension to file is not an extension to pay [and] there are many options for paying from setting up an online payment account and negotiating an agreement with the IRS.”

An extension to file gives you until October 15 to file your taxes. You must file your extension request by the April 18 deadline. You can use the IRS Free File to electronically request an automatic tax-filing extension.

If you owe the IRS and need extra time to file your return and to pay, then you need to request an extension to file and an extension to pay. If you owe and only request an extension to file, you may rack up penalties and interest on the amount you owe.

If you’ve completed your return by the deadline and owe but still want an extension to pay, you also have options. You can get an extension by paying all or part of your tax owed using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card. This means that you won’t have to file a separate extension and you will receive a confirmation number.

“You can pay your taxes with a credit card for a convenience fee,” Pickering said. “But if you're somebody who likes to get travel benefits or reward points, that may be a little benefit for an otherwise difficult situation.”

You can also pay your taxes by cash at IRS retail partners, but only payments up to $1,000. To avoid potential penalties and interest, pay at least seven business days before the April 18 deadline.

If you owe, see if you qualify for an Offer in Compromise, which allows you to settle your tax debt for less than the full amount you owe.

If you already filed your return and realized you missed a credit or deduction, you can amend your filed return.

“The general rule of thumb is you have three years to amend your tax return,” Pickering said. “If you filed your original return electronically, you can file your amendment electronically, which is absolutely the way to go.”

If you didn’t file previous years and are due a refund, you also have three years to file before you forfeit your refund. If your income is below the filing threshold, then you don’t have to file a return, but you may be leaving money on the table.

“If your income is below the filing threshold, you might [not] want the hassle of having to file, but you're missing out on money that's owed you,” Pickering said. “For people who didn't file their tax return at all for 2018 [and] you've got money that is owed to you, you can still file a tax return up until this Monday, April 18th."

Ronda is a personal finance senior reporter for Yahoo Money and attorney with experience in law, insurance, education, and government. Follow her on Twitter @writesronda

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