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April 2023 Individual Due Dates
Disaster Area Extensions:
Please note that due dates will be extended when a geographical area is designated as a disaster area. For more information on whether an area has been designated a disaster area and the filing extension dates, visit the following websites:
FEMA: https://www.fema.gov/disaster/declarations IRS: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations
For example, disaster-area taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments.
April 10 - Report Tips to Employer
If you are an employee who works for tips and received more than $20 in tips during March, you must report them to your employer on IRS Form 4070 no later than April 10. Your employer must withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 8 of your W-2 for the year. You must pay the uncollected withholding when your return for the year is filed.
April 18 - Taxpayers with Foreign Financial Interests
A U.S. citizen or resident, or a person doing business in the United States, who has a financial interest in or signature or other authority over any foreign financial accounts (bank, securities, or other types of financial accounts) in a foreign country, is required to file Form FinCEN 114. The form must be filed electronically; paper forms are not allowed. The form must be filed with the Treasury Department (not the IRS) no later than April 18, 2023, for 2022. An extension of time to file up to 6 months is automatically allowed. This filing requirement applies only if the aggregate value of these financial accounts exceeds $10,000 at any time during 2022. Contact our office for additional information and assistance filing the form.
April 18 - Individual Tax Returns Due
Although April 15 is on a Saturday in 2022, and individual income tax returns would normally be due that day, because the Washington, D.C. Emancipation Day holiday is observed on Monday, April 17, the due date is pushed to Tuesday, April 18.
File a 2022 income tax return (Form 1040 or 1040-SR) and pay any tax due. If you want an automatic six-month extension to file the return, please call this office.
Caution: The extension gives you until October 16, 2023, to file your 2022 1040 or 1040-SR return without being liable for the late filing penalty. However, it does not avoid the late payment penalty; thus, it can be severe if you owe money, so you are encouraged to file as soon as possible to minimize that penalty. Also, you will owe interest from the original due date until the tax is paid. If you have a refund, there is no penalty; however, you are giving the government a free loan since they will only pay interest starting 45 days after the return is filed. Please call this office to discuss your situation if you cannot file by the April 18 due date.
April 18 - Last Day to Establish a Keogh Account for 2022
If you are self-employed, April 18, 2023, is the last day to establish a Keogh Retirement Account if you plan to contribute for 2022. However, the last day can be extended until October 16, 2023, with a valid six-month extension of time to file your individual 2022 tax return.
April 18 - Household Employer Return Due
If you paid cash wages of $2,400 or more in 2022 to a household employee, you must file Schedule H. If you must file a federal income tax return (Form 1040 or 1040-SR), file Schedule H with the return and report any household employment taxes. Report any federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of 2021 or 2022 to household employees. Also, report any income tax that was withheld for your household employees. For more information, please call this office.
April 18 - Estimated Tax Payment Due (Individuals)
It’s time to make your first quarter estimated tax installment payment for the 2023 tax year. Our tax system is a “pay-as-you-earn” system. To facilitate that concept, the government has provided several means to assist taxpayers in meeting the “pay-as-you-earn” requirement. These include:
Payroll withholding for employees;
Pension withholding for retirees; and
Estimated tax payments for self-employed individuals and those with other sources of income not covered by withholding.
Taxpayers who fail to prepay a safe harbor (minimum) amount can be subject to the underpayment penalty. This penalty is equal to the federal short-term rate plus three percentage points, and the penalty is computed on a quarter-by-quarter basis.
Federal tax law does provide ways to avoid the underpayment penalty. No penalty is assessed if the underpayment is less than $1,000 (the “de minimis amount”). In addition, the law provides "safe harbor" prepayments. There are two safe harbors:
The first safe harbor is based on the tax owed in the current year. If your payments equal or exceed 90% of what is owed in the current year, you can escape a penalty.
The second safe harbor is based on the tax owed immediately preceding the tax year. This safe harbor is generally 100% of the prior year’s tax liability. However, for taxpayers whose AGI exceeds $150,000 ($75,000 for married taxpayers filing separately), the prior year’s safe harbor is 110%.
Example: Suppose your tax for the year is $10,000, and your prepayments total $5,600. The result is that you owe an additional $4,400 on your tax return. To determine if you owe a penalty, see if you meet the first safe harbor exception. Since 90% of $10,000 is $9,000, your prepayments fell short. You can't avoid the penalty under this exception.
However, in the above example, the safe harbor may still apply. Assume your prior year’s tax was $5,000. Since you prepaid $5,600, greater than 110% of the prior year’s tax (110% = $5,500), you qualify for this safe harbor and can escape the penalty.
This example underscores the importance of ensuring your prepayments are adequate, especially if you have a large increase in income. This is common when there is a large gain from the sale of stocks and property, when large bonuses are paid, when a taxpayer retires, etc. Timely payment of each required estimated tax installment is also a requirement to meet the safe harbor exception to the penalty. If you have questions regarding your safe harbor estimates, please call this office immediately.
CAUTION: Some state de minimis amounts, safe harbor estimate rules, and the dates estimated payments are due differ from those for the Federal estimates. Please call this office for particular state safe harbor rules.
April 18 - Last Day to Make Contributions
Last day to contribute to Traditional and Roth IRAs for the tax year 2022.
Weekends & Holidays:
If a due date falls on a Saturday, Sunday, or legal holiday, the due date is automatically extended until the next business day, which is not a legal holiday.
April 2023 Business Due Dates
Disaster Area Extensions:
Please note that due dates will be extended when a geographical area is designated as a disaster area. For more information on whether an area has been designated a disaster area and the filing extension dates, visit the following websites:
For example, disaster-area taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments.
April 18 - Household Employer Return Due
If you paid cash wages of $2,400 or more in 2022 to a household employee, you must file Schedule H. If you must file a federal income tax return (Form 1040 or 1040-SR), file Schedule H with the return and report any household employment taxes. Report any federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of 2021 or 2022 to household employees. Also, report any income tax that was withheld for your household employees. For more information, please call this office.
April 18 - C-Corporations
File a 2022 calendar year income tax return (Form 1120) and pay any tax due. If you need an automatic 6 -month extension to file the return, file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, and deposit what you estimate you owe. Filing this extension protects you from late filing penalties but not late payment penalties, so you must estimate your liability and deposit it using the instructions on Form 7004.
April 18- Social Security, Medicare, and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in March.
April 18 - Non-Payroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in March.
April 18 - C-Corporations
The first installment of the 2023 estimated tax of a calendar year corporation is due.
April 18 - Fiduciary Returns
Last day to file a 2022 calendar year fiduciary return (Form 1041, U.S. Income Tax Return of Estates and Trusts) or file an extension.
Weekends & Holidays:
If a due date falls on a Saturday, Sunday, or legal holiday, the due date is automatically extended until the next business day, which is not a legal holiday.
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