By Greg Iacurci -
CNBC
The federal tax filing deadline is drawing near.
The cutoff day for most Americans is just over two weeks away:
Tuesday, April 18
.
Here are five key things to know before filing your return, according to Kate Dore, CNBC personal finance reporter and certified financial planner:
You could get free help
Some taxpayers may be able to take advantage of free resources when filing their return.
For example, the IRS Free File program offers free, guided tax preparation.
The program, the result of a public-private collaboration, is available to taxpayers with adjusted gross income of $73,000 or less in 2022.
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Free File is available to 70% of taxpayers, but few use it and may unnecessarily end up paying to file their taxes.
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The IRS is likely to give you back less
The IRS had sent out 54 million refunds as of March 17.
Approximately 75% of tax returns processed have received a refund.
Returns averaged $2,933
, compared with $3,305 on the same date last year.
The reduction responds to the expiration of aid due to the pandemic, such as the increase in the credit for children and payments for income tax credits.
The most common mistakes
Common tax filing blunders could delay your tax processing or your money back.Among the top mistakes is: not including all the forms.
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That can happen, for example, if you're a self-employed person who received a 1099 form but didn't report it on your return.
Or, perhaps you didn't report investment income because you didn't receive a copy of the form in the mail, because it may only be available online.
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However, the IRS receives copies of those forms and knows that your tax return is incomplete.
Other common mistakes include misspelling your name, date of birth, social security number, or bank account number.
Failing to e-file and request direct deposit can also delay any refund.
Extension to declare, but not to pay
Taxpayers can request up to a six-month extension to file their federal taxes.
This makes sense if you are missing a form, for example.
Taxpayers can request an extension for free through Free File, regardless of income.
You can request up to a six-month extension to file your federal taxes.
But you can't ask for an extension to pay them.
But you can't ask for an extension to pay your federal taxes.
You have to pay your taxes by the April 18 deadline.
You can estimate how much you owe by processing it in a tax computer program and using estimates in the event that you are missing forms.
Another caveat: Taxpayers who request federal extensions must request one separately for their state taxes.
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Penalties for not declaring and not paying
The IRS has financial penalties for not filing a tax return and for not paying your taxes.
Failure to file a tax return represents a penalty of 5% of the balance owed per month or part of a month, up to 25%, plus interest, which is currently 7%.
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Not paying taxes represents a minor penalty of 0.5% of the balance owed per month or part of a month, up to 25%, plus interest.
If you can't pay the entire balance,
you can agree to a long-term monthly payment plan.
