BALTIMORE — April 18 is the deadline to file 2022 income taxes for those who haven't done so already.
Free help is available for those who need it.
Tax Day is a day some wish they could forget but most people remember it as April 15. Because April 15 was a Saturday, Tax Day is on April 18 this year since it can't fall on a weekend or holiday, giving taxpayers and the IRS a few extra days to work on tax returns.
The IRS itself offers a Free File program for taxpayers whose adjustable gross income is $73,000 or less.
It gives those taxpayers two different ways to prepare and file their federal income tax online.
One option is a guided tax preparation in which taxpayers answer simple questions and let the software do the work, and all the math. Since the IRS partners with other online filing services, most will help file state taxes as well.
The other option offers fillable forms in which taxpayers do all the work themselves. There's no tax preparation guidance and it only performs limited calculations. The fillable forms option also won't help with state tax preparation or filing.
In Maryland, the comptroller's office also offers several free services to taxpayers. Taxpayers can call to get help with personal income tax questions from 8:30 a.m. until to 6:00 p.m.
Maryland also offers a new Earned Income Tax Credit Assistant calculator that will help a taxpayers determine eligibility. There's a new I-file registration tutorial for first time users but you will need information from your federal return to complete your Maryland return.
Taxpayers are always wondering what deductions they can make to save money on owing on their taxes. One question many may have, having spent time working from home during the pandemic, is if that counts as a deduction.
Financial education coach Lynn Richardson said “this one is tricky. If you work from home for your job where you get a W-2, it is not tax deductible. But if you work from home for your own home based business, if you are an independent contractor, if you do freelance work, as long as the space is used exclusively for business or you can't sleep in there, you can't lounge in there. If it's used exclusively for business, if you meet your clients there, if you use it as a rental or day care facility, you get that tax writeoff.”
Anyone who lost money in crypto in 2022 should keep in mind that they can actually use that to offset up to $3,000 in income.
However, if you made it big in crypto or if you were paid in virtual currency for a job -- those need to be reported on your taxes.
IRS spokesperson Luis Garcia said “income is income. So, it doesn't matter where it comes from. You want to make sure that you report it on your taxes and not doing so is not following the law.
Garcia said for taxpayers who own crypto, digital assets are treated the same as property for federal tax purposes.
Even if someone didn't sell any digital currencies but just owns it, they still want to make sure to check the box on their form that asks whether you owned any digital assets or not.
Taxpayers who need more time to prepare or can't pay, can request an extension until October 16.
Experts recommend using the extra time to gather a list of expenses to can get as many deductions as possible.
There are no penalties for filing an extension, but you will have to pay interest if you owe the IRS.
