wooWhen it comes to taxes, we usually only think of one day: time limit by which the filing of federal income tax returns is required. tax Day 2022 was for most taxpayers April 18, Of course, there are other tax deadlines throughout the year. In fact, many people should consider the many deadlines that are approaching. 17 October.
October 17 Due dates are one of several important tax deadlines that you should be aware of. Missing a deadline can cost you a lot of money, in the form of penalties, interest charges, or additional taxes. Let us know about 5 tax deadlines that you should not miss on October 17.
Extended Federal Tax Return
The additional deadline is October 17, 2022, if you have not filed your 2021 federal tax return by April 18, 2022, and requested a filing extension by that date. Keep in mind that requesting a filing extension does not extend the deadline for paying your tax debt. You still need to calculate how much tax you owe and pay it before April 18. If not, you run the risk of incurring penalty and interest on the outstanding amount.
Some people may have more time to file an extended federal tax return. For example, taxpayers living abroad or fighting in a war zone may be allowed to file extended returns after October 17. In addition, the IRS allows some natural disaster victims to file extended returns after October 17.
Extended State Tax Return
On October 17, 2022, some people will have returns other than their federal tax returns. If you requested and the extension was granted by your state, chances are you’ll need to file a state income tax return by October 17 if you don’t live in a state with no income tax.
Many states have moved their state tax filing deadlines with federal tax filing deadlines. As a result, many extended state tax returns are also due on October 17th, which coincides with the longer federal tax filing deadline.
Contribute to a SEP IRA
Self-employed individuals and small business owners who want to save money with an easy and affordable retirement plan often use a simplified employee pension IRA, or SEP IRA. A SEP IRA actually allows you to save more for retirement than a 401(k) plan offered by your employer. You can deduct up to 25% of your salary for 2022 or $61,000, whichever is less.
As a result, you can save more for retirement using a SEP IRA than with a regular or Roth IRA. Keep in mind that the maximum contribution in 2022 for both regular and Roth IRAs is $6,000 ($7,000 for individuals age 50 or older).
By the deadline for filing your tax return (including extensions) for the year in which qualified contributions exist, you must set up a SEP IRA. Account contributions are payable on the same day every year. If you requested an extension, the deadline for opening and contributing to a SEP IRA for the 2021 tax year is October 17, 2022.
Contribute to a Solo 401(k)
For self-employed individuals who want to make Solo 401(k) contributions for the 2021 tax year but asked for an extension to submit their federal income tax return, the deadline is October 17. For 2021, the maximum single 401(k) contribution a self-employed person can make is $58,000. The maximum contribution for people 50 and older is $64,500.
These amounts may seem large because you can contribute to a Solo 401(k) as both an employer and an employee, but keep in mind that the restrictions for contributions to all 401(k) plans are based on the sum total. If you contribute to a 401(k) plan through your place of employment, the amount you can contribute to your Solo 401(k) plan will thus decrease as it counts toward an overall limit of $58,000 or $64,500. will be counted.
Withdraw or Re-attribute Additional IRA Contributions
You overloaded your IRA with contributions, so you now have surplus contributions! How do you behave? The best course of action in this situation is to withdraw the excess amount before the deadline for filing your tax return for the contribution’s tax year (including any extensions).
So, if you have asked for a filing extension for your 2021 tax return, you have until October 17, 2022 to take any surplus funds that were contributed in 2021. If the withdrawal is made on time, you can do so without paying 6%. a punishment. If not completed in a timely manner, a 6% penalty will be imposed on the excess contribution and any gains on that will remain in the IRA for each year.