With updates to many tax laws and questions over stimulus payments, unemployment, and other adjustments made by the IRS, this tax season may raise more questions than normal.
For most Americans, the tax deadline is fast approaching. After two years of extended deadlines due to the COVID-19 pandemic, Tax Day is officially April 18, 2022 (unless you have been granted an extension). That means in just 7 days’ time, 2021 taxes are due – and specialists at Johnson Wealth and Income Management are here to help you be as prepared as possible.
Tax analysts want to remind everyone: there is not a month-long extension this year. Taxes are due Monday, April 18. Anylists are concerned with the amount of people who have not filed as of now, and they encourage you to book an appointment as soon as possible before there are no availabilities.
Iowa Tax Dates
As they say, nothing is as certain as death and taxes. In Iowa, that means paying not only a federal income tax, but also a state personal income tax. Chances are, if you live or work in Iowa, you pay the state income tax.
The deadline for filing federal taxes for most taxpayers in Iowa is Monday, April 18, 2022. This year that is actually because the 15th of April is recognized as a holiday, Emancipation Day, in Washington, DC. In addition, if you’re serving in the military abroad, including in a combat zone or as part of a contingency operation in support of the US Armed Forces, you may be granted additional time to file your return.
The filing deadline for Iowa income tax returns is May 2, 2022. You must file an extension by April 18, 2022 if you need more time to file. Remember – a tax extension gives you more time to submit your return, not to pay your taxes.
No late-filing or underpayment penalties shall be due for qualifying taxpayers who comply with the extended filing and payment deadline in this Order. Interest on unpaid taxes covered by this Order shall be due beginning on May 2, 2022.
An Iowa personal extension is automatic, which means there is no application to submit. However, at least 90% of your Iowa tax liability must be paid by the original deadline (May 2, 2022) to avoid penalties. As long as you meet that requirement, you will automatically receive a tax extension, which moves your filing deadline to the last day of October.
What happens if I miss the deadline?
It depends on whether or not you owe the IRS money. If you are owed a refund, there is no penalty for filing late. This differs from state to state, and in Iowa you won’t be penalized. Regardless of that, it’s still best practice to file an individual tax return as early as possible.
If you owe money to the IRS, that is where you will accrue penalties on any unpaid taxes. The late-filing penalty is 5% of the taxes due for each month your return is behind, with fees increasing to up to 25% of your due balance after 60 days have passed.
How do I check the status of my refund?
Typically, you can expect your refund within 21 days of officially filing assuming there aren’t any problems with your return.
The IRS website actually has a tool that lets you check the status of your refund, in addition to the app called IRS2Go.
Typically, you can access your refund status about 24 hours after e-filing or 4 weeks after mailing in a return. In order to check the status of your return, you’ll need to provide your Social Security number or ITIN, filing status and the exact amount of your refund. If your status is “received,” the IRS has your return and is processing it. If you see “Approved” it means your refund is on its way, congratulations!
Iowa Composite Returns for Tax Year 2022 and Later
On June 8, 2021, Governor Kim Reynolds signed 2021 Iowa Acts, Senate File 608. Division II of that legislation made extensive changes to Iowa’s composite return and nonresident withholding requirements for pass-through entities and their nonresident members. These changes apply to tax years beginning on or after January 1, 2022 (“tax year 2022”).
For information on Iowa’s composite return and nonresident withholding requirements for pass-through entities and their nonresident members in effect before tax year 2022, see the IA 1040C (composite individual income tax return for nonresidents), as well as Iowa Administrative Code rule 701—chapter 48 (composite returns) and Iowa Administrative Code rule 701—46.4 (withholding on nonresidents).
Final Thoughts
If you’re tempted to not pay your state or federal taxes, please understand that intentional non-payment or underpayment can have serious consequences, from a 10% penalty for non-timely payment to a criminal fraud conviction. Not paying the taxes you owe is a crime called tax fraud or tax evasion. If you suspect a person or business is committing tax fraud, you can report it online to the Iowa Department of Revenue.
Do You Need Further Assistance with Taxes?
Don’t panic, Johnson Wealth and Management Fiduciary advisors are here to help you. Contact us today, and we’ll help you with a personalized plan to ensure you properly file and check all the confusing tax boxes.
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