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Leisure World News • Community • April 2022 A15 TAX CORNER Tax Time: What You Need to Know! By Ken Weinstock, CPA Welcome back to the Tax Corner! This month, I will be talking about topics that may affect your 2021 tax return filing. Tax Return Due Date Tax returns are always due on April 15, right? Well, maybe not. If April 15 falls on a weekend or holiday, the due date is extended to the next business day. For example, Emancipation Day is a holiday observed in Washington, D.C., and is celebrated on the weekday nearest April 16. This year, it falls on Friday, April 15. Since the Internal Revenue Service’s headquarters are in Washington, D.C., it will be closed that day. Therefore, tax returns will be due on the next business day, which is Monday, April 18, 2022. Emancipation Day marks April 16, 1862, when President Abraham Lincoln signed the District of Columbia Compensated Emancipation Act which freed over 3,000 slaves in the District and compensated slave owners for freeing their slaves. This happened eight months before President Lincoln issued the broader Emancipation Proclamation. Extension to File If you are not able to file your tax return by April 18, you can get an automatic six-month extension to file your return by October 17. This year, since October 15 falls on a Saturday, returns will be due on the next business day on Monday, October 17. If you want an extension to file your return, fill out form IRS Form 4868, which can be found on the on the IRS web site: www.irs.gov . Please note that you get an extension of time to file your tax return but not an extension of time to pay any balance due. Late penalties and interest will apply if you pay the balance owed after April 18. If you cannot pay the original amount owed by April 18, it is still a good idea to file an extension. Late paying penalties are one-half percent per month, but late filing penalties are 5% per month, which is 10 times the penalty for filing late without an extension. Filing Status There are three main filing statuses: 1. single 2. married and 3. head of household. 1. Single: Use the single status for 2021 if you have never been married, if you were divorced during the year, or if you were widowed before January 1, 2021, and didn’t remarry by December 31, 2021. 2. Married: There are two ways to file when married: jointly or separately. You will usually pay more tax by filing separately than if you use another filing status. For either joint or separate returns, you are considered married if the any following occurred: 1. You were legally married as of December 31, 2021, even if you did not live with your spouse at the end of the year, or 2. Your spouse died in 2021 and you did not remarry in 2021, or 3. You were married at the end of 2021 and your spouse died in 2022. 3. Head of Household: You can file as head of household if you are unmarried and provide a home for certain persons. Determining your filing status is not always as easy as it seems. You can get help with this and many other issues by reviewing the instructions on Form 1040 found on the IRS website: www.irs.gov . Arizona Charitable Contributions Credit Did you ever wish that you could go back in time to reduce the taxes you pay? Now, you can! You can get a credit on your 2021 Arizona tax return of up to $400 on a single tax return or $800 on a married joint tax return if you make a qualifying contribution by April 18, 2022, to a Qualifying Charitable Organization and up to $500 on a single tax return or $1,000 on a married joint tax return for contributing to a Qualifying Foster Care Charitable Organization. For more information, visit the Arizona Department of Revenue website: www.azdor.gov . Please remember that the Tax Corner provides information regarding various aspects of taxes. However, none of this is tax advice. Because tax law is complex, please consult with your tax advisor for help with your specific situation. Happy filing! -Ken Weinstock, CPA, is a Leisure World resident. Porcelain Crown $ 699 New patients without insurance only. Expires 3/31/21. Implant Placement $ 799 New patients without insurance only. Connector and crown additional $1399. Expires 3/31/21. Supreme Dentures $ 999 New patients without insurance only. Fee for single arch only. Expires 3/31/21. Emergencies Welcome & Same Day Appointments 1545 E. University Dr., Mesa, Arizona 85203 (480) 645-9665 • mesaazdentist.com We provide a wide array of services for comprehensive care that includes: Restorative Care, Cosmetic Dentistry, Same-Day Crowns, Sleep Apnea/TMJ, Periodontal Care, and so much more! 10 % OFF for Leisure World residents Mention this ad for discount. Cannot be combined with any other offer. Expires 4/30/21.