There’s just a few weeks left before the tax filing deadline for those in most of California.
Here’s what you should know to avoid any tax penalties.
The IRS gave most people and businesses in California (as well as parts of Alabama and Georgia) a six-month extension on filing federal tax returns — the state soon followed suit — because of the 2022 to 2023 winter storms. Previously, the IRS pushed the deadline to May 15 from the original April 18.
The deadline now is Oct. 16.
“As communities across the state continue recovering from the damage caused by the winter storms, California is working swiftly to help recovering Californians get back on their feet,” Gov. Gavin Newsom said in a March news release announcing the extension.
What areas and tax returns are eligible?
Fifty-five of California’s 58 counties — except Lassen, Modoc and Shasta — are eligible for the extended deadline. If you live in any of the affected counties, you don’t have to prove your eligibility; it’s automatic.
You need to file and pay on time to avoid penalties.
Eligible returns and payments include the following:
2022 individual income tax returns and payments normally due on April 18.
For eligible taxpayers, 2022 contributions to IRAs and health savings accounts.
Quarterly estimated tax payments normally due on April 18, June 15 and Sept. 15.
Calendar-year 2022 partnership and S corporation returns normally due on March 15.
Calendar-year 2022 corporate and fiduciary income tax returns and payments normally due on April 18.
Quarterly payroll and excise tax returns normally due on May 1 and July 31.
Calendar-year 2022 returns filed by tax-exempt organizations normally due on May 15.
What about penalties?
If you file and pay on time, you won’t face tax penalties.
Typically, you’ll face penalties when you do one of the following, according to the Franchise Tax Board:
- Don’t file on time
- Don’t pay on time
- Don’t pay enough estimated tax
- Don’t have enough taxes withheld from your paycheck
- Don’t pay electronically when you’re required
- Make a dishonored payment (bounced check, insufficient funds)
For example: If you file late or don’t file, you could be hit with a penalty of 5% of the amount due from the original due date and, after applying any payments or credits made on or before the original due date of your tax return, for each month or part of a month unpaid.
If you pay late or don’t pay, you could be charged 5% of the unpaid tax and .5% of the unpaid tax for each month or part of the month that it isn’t paid.
How do you claim a disaster loss on your taxes?
You can claim a disaster loss when filing either an original or amended tax year 2022 return.
If filing on paper, you’ll need to print the following information in blue or black ink on the top of your return:
For example, that would look like this: Disaster Camp Fire 2018.
You’ll also need to include a statement that includes the date of the disaster, the location of the disaster (including the city, county, and state) and your decision to deduct the loss in the taxable year before the year the disaster occurred (this last part is optional).
You’ll need copies of these federal forms:
You may also need to provide the following California forms:
For more information, visit the Franchise Tax Board’s website.
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https://www.sacbee.com/news/california/article279843959.html When is the due date to file 2022 California tax returns?