Did you get an extension on your taxes this year? The deadline to file is looming

If you got an extension on the deadline to file your taxes earlier this year, it’s time to start getting your return in order.

The tax extension deadline for filing 2021 tax returns is less than a month away.

It’s an especially important deadline this year, with the IRS reporting as many as 19 million Americans filed for an extension on their 2021 tax returns. And failure to pay your taxes and get your returns in on time could lead to costly penalties and legal issues.

Here’s what to know about the tax extension deadlines for 2022 at the federal and state levels:

Tax extension deadline 2022

Filing for an extension on your tax return typically gets you an extended deadline of Oct. 15, per the IRS. But since Oct. 15 is a Saturday this year, the extended deadline is pushed to the next business day, Oct. 17.

“Your return is considered filed on time if the envelope is properly addressed, postmarked, and deposited in the mail by the due date,” the agency says.

You can also electronically prepare and file your tax return using the IRS Free File program at irs.gov/filing/free-file-do-your-federal-taxes-for-free.

What is the business tax extension deadline for 2022?

Corporations that got an extension on their taxes back in April are up against the same deadline as individuals, Oct. 17.

What happens if you file taxes late?

The penalty for being late on your taxes depends on whether or not you’re owed money or owe money, according to the tax prep company TurboTax.

“If you have a refund coming from the IRS — as about three out of four taxpayers do every year — then there is no penalty for failing to file your tax return by the deadline, even if you don’t ask for an extension,” TurboTax says.

But if you owe money to the IRS and haven’t paid up yet, you’re likely facing “a late payment penalty of 0.5% per month, or fraction thereof, until the tax is paid.” And “you’ll also likely owe interest on whatever amount you didn’t pay by the filing deadline.”

What about state tax returns?

In North Carolina, “a taxpayer who is granted an automatic extension to file a federal income tax return will be granted an automatic extension to file the corresponding North Carolina income tax return,” the state Department of Revenue says.

Extensions in North Carolina get you an extra six months to file, meaning Oct. 17 is also the extended deadline to get your state tax return in.

Late returns in the state are subject to “a failure to file penalty of 5% of the net tax due for each month, or part of a month, the return is late (maximum 25% of the additional tax).”