The April 18 deadline for individuals to file and pay their federal income tax is just around the corner. While paying taxes is not optional, the IRS offers a variety of ways for people to pay their taxes.
Some taxpayers must make quarterly estimated tax payments throughout the year. This includes sole proprietors, partners, and S corporation shareholders who expect to owe $1,000 or more when they file. Individuals who participate in the gig economy might also have to make estimated payments. Taxpayers can pay all of their 2022 estimated taxes by April 18, 2022 or in four quarterly installments due April 18, 2022, June 15, 2022, Sept 15, 2022 and Jan 17, 2023.
Here are five ways people who owe taxes can pay it. They can:
- Pay when they e-file using their bank account, at no charge, using electronic funds withdrawal.
- Sign into their on line account to pay their 2021 balance, estimated taxes, or payment for an extension to file. Taxpayers can also see their payment history, any scheduled or pending payments, and other account details.
- Use IRS Direct Pay to pay electronically directly from their checking or savings account. Taxpayers may choose to schedule a payment up to 365 days in advance. They can choose to receive email notifications about their payments when they pay this way.
- Pay using a payment processor by credit card, debit card or digital wallet options. Taxpayers can make these payment on line, by phone.
- Make a cash payment at more than 60,000 participating retail locations nationwide. To pay with cash, taxpayers should visit IRS.gov and follow the instructions.
- Pay over time by applying for an on line payment agreement. Once the IRS accepts an agreement, taxpayers can make their payment in monthly installments.
Different factors can affect the timing of a refund after the IRS receives a return. A manual review may be necessary when a return has errors, is incomplete or is affected by identity theft or fraud.
Other returns can also take longer to process, including when a return needs a correction to Child Tax Credit or Recovery Rebate Credit amount, includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit, or includes a Form 8379, Injured Spouse Allocation , which could take up to 14 weeks to process.
To combat anticipated complications and questions on how to report the ACTC on tax returns, the IRS announced on December 21, 2021, that a letter would be sent to ACTC recipients starting in December and to recipients of the third round of the Economic Impact Payments at the end of January.
It is the IRS’s hope that by providing Letter 6419 for ACTC recipients and Letter 6475 for Third Economic Impact Payment recipients, it will be able to decrease the number of calls received, general confusion by taxpayers, and the number of manual reviews by IRS that need to occur, as was the case during Fiscal Year 2021.
The N.C. Department of Revenue announced that it will begin processing 2021 tax year returns in mid-February, which is several weeks after the start of the nation’s tax season on Monday, January 24, 2022.
This delay is due to the late approval of the state budget, which included multiple tax law changes. The later start date allows NCDOR time to complete the testing of system updates and approve updates in commercial tax preparation software, which are required to implement changes made by the final budget enacted in late November 2021.
North Carolina taxpayers may submit their state forms at the same time they submit their federal forms beginning January 24 if their tax preparation software has been updated for the upcoming year. The early submissions will be considered as filed on the date transmitted, even though there will be a delay in processing.
NCDOR encourages taxpayers to use electronic filing rather than paper filing. E-filing ensures a faster refund and is the most secure way to file.
The department will provide additional information in upcoming weeks regarding the exact start date and when taxpayers should begin to expect to receive individual income tax refunds.