Last minute for taxes, but there's a bit more wiggle room this year

Mike Ellis, Lansing State Journal
Updated ·6 min read

You waited for the last minute to file your taxes, didn't you?

It's almost Tax Day, but good news: You've got a bit of breathing room this year.

Because April 15 falls on a weekend, and Monday is Emancipation Day in Washington, D.C., Tax Day for Michigan and federal taxes is April 18 this year.

If that doesn't give you enough time to get your paperwork together and file online or via the mail, file an extension, which will push the deadline to Oct. 16. Your taxes, if you owe money, are still due, but the paperwork can be delayed.

Taxpayers are warned to watch out for bad preparers. Fraud schemes have included situations where a preperarer shows a legitimate return to the taxpayer but then files a different false return that generates a substantial refund that the preparer pockets. File photo: A 2014 photo shows the Internal Revenue Service headquarters building in Washington, D.C. (AP Photo/J. David Ake, File)

For Lansing and East Lansing city taxes, the due date is April 30.

East Lansing officials are currently finishing up taxes that were received before March 15. If you submitted taxes before then and haven't received a response, email the city at incometax@cityofeastlansing. Taxes filed after March 15 are processed in the order they're received.

Can I just file an extension and forget it?

No, you really can't.

Many taxpayers, according to the Internal Revenue Service, believe they simply file Form 4868 for an automatic six-month extension and sit back and do nothing until Oct. 16.

But your tax bill is still due on April 18. You're getting an extension to file, not an extension to pay. If you think you owe money, it's important to pay as much as you're able to by April 18. You should pay the full amount due to avoid interest and penalties.

Tax filers are being warned that it's quite possible that many will see smaller refunds when they file 2022 returns than they what they saw last year.
Tax filers are being warned that it's quite possible that many will see smaller refunds when they file 2022 returns than they what they saw last year.

The IRS has estimated that more than 20.5 million forms nationwide will be filed either electronically or by paper requesting an extension in 2023.

Among Michigan's tax filers, the IRS estimates it will receive 426,600 requests for an automatic extension in 2023. More than 7.4 million federal returns are expected to be filed by Michigan taxpayers in 2023, including returns from individuals and businesses, according to IRS forecasts.

Site coordinator Lamis Alnajjar, center, helps a woman with information regarding an appointment to get her taxes prepared at the Accounting Aid Society Northwest Financial Hub in Detroit on March 16, 2023. Households with income below $60,000 can qualify for free tax preparation unless they include things such as including rental income; business use of the home; and someone who is self-employed with inventory or costs of goods sold.

Is everyone required to file by April 18?

The last Michigan automatic disaster extensions were offered in 2021 because of severe storms and flooding during July that year.

The IRS is offering such relief to tax filers hit by disasters in 2022 in a variety of areas, including California, Alabama, Arkansas, New York, Mississippi and Georgia. Check the IRS.gov website for details.

Taxpayers are warned that scammers use all sorts of tricks — including texting consumers about a tax refund or tax rebate. The IRS not not sending those texts; scammers are.
Taxpayers are warned that scammers use all sorts of tricks — including texting consumers about a tax refund or tax rebate. The IRS not not sending those texts; scammers are.

The IRS has a long list of federally declared disaster areas where the April 18 deadline will not apply. In those cases, you don't need to file a Form 4868 to get an automatic extension. Victims of severe storms and tornadoes in Tennessee that hit March 31 and April 1, for example, now have until July 31 to file and make payments for their federal income taxes.

More:There's no secret way to get free money or a big refund, IRS warns

Why should I even file a tax return?

It's true many people aren't required to file because their incomes are so low they're not obligated to do so. But did you have taxes withheld from a paycheck that could be returned to you via a tax refund? Did you make estimated payments?

Taxpayers are warned that their income tax refund could be smaller this year after many stimulus tax breaks ended.
Taxpayers are warned that their income tax refund could be smaller this year after many stimulus tax breaks ended.

By filing a return, you might get some money back that was withheld. Many working, lower income households would get bigger refunds if they qualify for the earned income tax credit.

More:People may not realize they're eligible for Earned Income Tax Credit on 2022 returns

More:Companies can deduct full cost of business meals on 2022 tax returns

The IRS has an online tool at IRS.gov called "Do I need to file a tax return?" to help you figure out whether you must file a tax return. You need your filing status, the federal income taxes withheld (shown on a W-2 or year-end paycheck) and other basic information to help determine your gross income. New filing thresholds are set each year.

If you're single and under age 65, for example, you'd be required to file a federal income tax return if you made more than $12,950 in 2022. If 65 or older, the threshold is $14,700 for a single person, according to the IRS.

If married and filing jointly, and if both spouses are younger than 65, the threshold is more than $25,900, according to the IRS. Your age is determined by how old you were on Dec. 31, 2022. The thresholds are slightly higher for those who are older.

Thinking about just waiting to file?

People who owe money — or imagine that they owe a great deal of money — might want to go into hiding, but ignoring your taxes only makes matters worse because you'll be hit by a steep penalty for a failing to file.

A failure to file penalty of 5% of the unpaid tax is assessed each month or part of a month the return is late, up to a maximum of 25%.

The National Taxpayer Advocate gave an example in a blog posted April 12. A person who owes $3,000 in federal income taxes who doesn't file a return or request an extension could incur $750 in penalties, plus interest, within five months," the blog noted.

"Even when the amount of tax due on a taxpayer’s return is not large, but the return is over 60 days late, there is a minimum failure-to-file penalty that is the lesser of $435 or 100% of the tax required to be shown on the return," the blog noted.

More:How inflation and taxes hit giant profit-sharing checks for autoworkers

More:You can buy I Bonds with your tax refund: What to know about rates, deadline

When should you amend a return?

Sometimes, you file a return and then discover you've made a mistake: Maybe you didn't spot some paperwork, like a 1099 for a mutual fund held outside of a 401(k) plan, or maybe it's a math error.

The IRS has a tool to help you decide if you need to amend a return. Taxpayers can use the Should I File an Amended Return? at IRS.gov to help decide if they should correct an error or make other changes.

Tax filers saw $172.26 billion in federal income tax refunds head their way through March 24. While that's a great deal of money, the total dollar amount is down $16.4 billion or down 8.7% from a year ago.
Tax filers saw $172.26 billion in federal income tax refunds head their way through March 24. While that's a great deal of money, the total dollar amount is down $16.4 billion or down 8.7% from a year ago.

More:About $1.5 billion in unclaimed refunds awaits for those who haven't filed 2019 returns

What happens when 2 plus 2 doesn't add up to 7? Don't file an amended return to fix a math error or if you forgot to attach a form or schedule. The IRS says it will correct the math error while processing the tax return and notify you by mail. You'd get a letter requesting any missing forms or schedules.

File an amended return if there's a bigger issue, such as a change in income or the amount of tax you owe. If you made a mistake with a deduction, you'd need to file an amended return, too.

See Form 1040-X, Amended U.S. Individual Income Tax Return. You can file electronically for 2020, 2021 or 2022 in many, but not all, cases. Taxpayers who file an amended return electronically can receive any refund by direct deposit to their bank account. But that option is not available for those who file on paper.

How can I check the status of my Michigan income tax refund?

If you filed your state of Michigan income tax return, you can check online to find updates. See michigan.gov/taxes/iit/refund.

Contact Susan Tompor: stompor@freepress.com. Follow her on Twitter @tompor. 

Contact Mike Ellis at mellis@lsj.com or on Twitter @MikeEllis_AIM

Savers can direct all or part of their federal tax refunds — up to $5,000 — to I Bonds if they file Form 8888 with their 2022 tax return.
Savers can direct all or part of their federal tax refunds — up to $5,000 — to I Bonds if they file Form 8888 with their 2022 tax return.

This article originally appeared on Lansing State Journal: I waited to file my taxes, what should I do in Michigan, last minute