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When are your 2022 state and federal taxes due? If you live in California, you will likely qualify for an automatic tax-filing extension. The IRS has offered California taxpayers more time to file their 2022 taxes after the state was hit with a mind-numbing amount of rain in early 2023. While Tuesday, April 18, 2023, remains the tax-filing deadline for most Americans, the IRS is offering California residents in designated areas extra time to file.
What Is The New Tax Deadline For Californians?
The IRS has announced that California storm victims now have until October 16, 2023, to file individual federal and business tax returns and make various other tax payments. The IRS is offering the extension to people in the most populated parts of the state, including Los Angeles, San Diego, Orange, Riverside, Sacramento, and San Francisco counties. This is later than the previously announced extension to May 15, 2023.
Click here to see the complete list of areas this tax-filing extension covers.
According to the IRS website, the announced tax relief postpones various tax filing and payment deadlines that occurred starting January 8, 2023. Those affected have until October 16, 2023, to file returns and pay any taxes originally due during this period. This includes 2022 individual income tax returns due on April 18 and various 2022 business returns ordinarily due on March 15 and April 18.
Eligible taxpayers will also have until October 16, 2023, to make 2022 contributions to their IRAs and health savings accounts. Business owners will still have until their tax-filing deadline to fund the employer side of their 401(k) and Cash Balance Pension Plans.
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How To File For A Tax Extension In 2023
For those of you who like to procrastinate, anyone can request an extension of time to file their federal taxes, not just California residents. For those of you reading this post who are not California residents affected by the severe storms, you will need to file for a tax extension by April 18, 2023
You can file IRS Form 4868 to receive an automatic six-month extension to file your taxes. Due to the severe weather, this step is waived for California tax filers this year. In a typical tax year, Californians would still need to file for a tax extension like everyone else.
If you use a professional tax preparer, that individual can help you fill in the IRS Form 4868. For those who file your taxes yourselves, tax software like TurboTax should also be able to help you fill in this IRS form.
New Deadlines For Estimated Payments In 2023
While I wouldn’t recommend using this automatic extension to file your taxes as an excuse to ignore your 2023 tax planning, it does allow you to delay some tax payments. The October 16 deadline also pushes back the due dates of quarterly tax payments. For example, your fourth quarter estimated tax payment, usually due January 17, 2023, will not be due October 16, 2023.
The pushed-back IRS tax-filing deadline for Californians also applies to the estimated tax payments due April 18, June 15, and September 15. With interest rates creeping up on savings accounts, you may want to set aside those quarterly payments into a high-yield savings account and earn a little interest on the money. On the other hand, if you ignore the quarterly payments and have to pay them all at once in October, writing that check might be quite painful.
Related: Can You Still Open A SEP IRA To Lower 2022 Taxes?
Deadline To File Your 2022 California Taxes
State and Federal tax deadlines don’t always match. But here is some good news, the office of California Governor Gavin Newsom has announced that the Franchise Tax Board will conform to the IRS postponement of tax filing as well as the tax payment deadline of October 16, 2023.
This applies to all of California except residents of the following counties: Imperial, Kern, Lassen, Modoc, Plumas, Shasta, and Sierra.
Regardless of when your taxes are due, tax planning should be a year-round conversation. Work with your tax-focused financial planner to help you develop a proactive strategy to reduce the taxes you pay over your lifetime.
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