Tax Day recap: What to know on the last day to file tax returns in 2022 – USA TODAY

What you need to know about cryptocurrency and filing your taxes

If you're thinking of investing in cryptocurrency, plan to pay taxes on what you earn. Here's how you'll be taxed and what you'll owe.

Andrea Kramar and Hye-Su Jun, USA TODAY

Tax season procrastinators had one more chance to sort out returns and pay any taxes owed.

April 18 is the deadline for most taxpayers across the U.S. to file their returns. Residents in Maine and Massachusetts have until April 19 because of Patriots' Day.

As of April 8, more than 103 million federal tax returns were filed. The IRS estimates it will receive more than 160 million returns this year.

For those taxpayers getting a refund, their deposit or check was likely larger than in 2021. IRS data shows refunds are averaging $3,175this season, nearly 10% higher than last year.

Below is a recap of all the information you need to know on the final day of the 2022 tax season.

TAX SEASON 2022: What to know about extensions, refunds and child tax credits.

WHEN ARE TAX RETURNS DUE?: These are the deadlines to file

Multiple Twitter users say they are having trouble logging into their accounts with the IRS. They are either stuck on a landing page that automatically refreshes or are directed to a new page with a notice that says increased traffic is impacting service. "Please consider returning later while we work to resolve this issue."

The IRS did not immediately respond to USA TODAYS inquiry regarding when it expects to resolve the problem and what last-minute filers should do if they cannot access key information on their accounts.

Its unclear if the issue is occurring nationwide or if it is isolated in certain geographic areas.

Elisabeth Buchwald

Tens of millions of tax returns will flood the Internal Revenue Service now that the April 18 filing deadline is here. But the headaches of the latest tax season and last year's leftover troubles will linger in the months ahead.

"The IRS has to get current with not only prior years but this year's tax returns before they move into the next filing season without this albatross around its neck," said Erin Collins, the national taxpayer advocate.

For the IRS, it has meant putting as many resources and people as possible toward clearing out the backlog that built up in 2021.

For taxpayers, it can mean repeated efforts to get an IRS employee on the phone to answer a question or help with a problem. It means anyone who has filed a paper return this year risks ridiculously long waits of possibly six months or even nine months to receive an income tax refund.

The IRS has historically been able to process a refund within two weeks for an electronically filed tax return and up to six weeks for a paper tax return.

Susan Tompor, Detroit Free Press

The number of people who reported cryptocurrency transactions in their 2020 tax return more than tripled compared with 2019, according to data from TurboTax. The tax software company expects even more people to report crypto transactions on their 2021 taxes.

TurboTax also found that 63% of people reporting crypto on their 2020 returns gained money compared with 45% of people on their 2019 returns.

Elisabeth Buchwald

Residents in states affected by a natural disaster could get more time to file returns and pay the IRS.

For example, Tennessee residents and businesses in 14 counties hit by disasters in the past year will get until May 16 to file returns and make payments.

Tennessee was hit by severe weather in December, including strong winds and storms in some areas of the state.

Residents in other states could see relief as well, including victims of wildfires in Colorado, and victims of severe storms and flooding in Puerto Rico.

Don't forget the Tax Day treats

Filing your taxes can be stressful. Fortunately, several businesses and restaurants are providing Tax Day freebies and perks. Among some of the food and services available:

As of April 8, the IRS received more than 103 million returns. Of those, the agency processed nearly 100 million returns. Thats 10% higher compared to the same time last year. However, the tax deadline was extended by a month.

Compared to the total number of returns received by the end of filing season 2019, we have received almost of all the returns we will receive by the filing deadline, said Anthony Burke, an IRS spokesperson.

So far the IRS issued more than $222 billion in refunds. The average refund is $3,175, nearly 10% higher than last year thanks to the enhanced Child Tax Credit and Earned Income Tax Credit, and the third round of stimulus checks which many taxpayers will be claiming as a refund.

Elisabeth Buchwald

The deadline to file taxes typically falls on April 15, but this year taxpayers get a couple of extra days to file thanks to a D.C. holiday.

The D.C. offices for the IRS were closed on April 15 to recognize Emancipation Day, which commemorates the abolition of slavery. Although Emancipation Day is April 16, it was observed by the government the Friday before.

This is not the first time in recent history taxpayers received extra time to file their taxes. Last year, the deadline was pushed to May 17 so taxpayers had more time to file. In 2020, the IRS extended the tax deadline to July 15 amid the COVID pandemic.

Filing taxes is never fun, but digital services which allow taxpayers to submit returns electronically have made the process smoother, especially for those waiting until the last minute.

So what's the best tax software? According to Reviewed, TurboTax is the top option because"It's intuitive, offers differently priced packages depending on your tax needs" and provides lots of support if you run into issues.

Another great choice is H&R Block, which Reviewed says is easy to navigate and includes unemployment income if you're using the free edition of its service.

Taxpayers who need more time to complete their return can file an extension, which gives them until Oct. 17to submit. However, you still have to pay the IRS any taxes owed by Monday.

Taxpayers can visit the IRS website's Free File option to receive the six-month extension for free. After picking a firm that participates in Free File, taxpayers fill out Form 4868 for the extension.

Taxpayers who do owe money will need to estimate the amount. According to H&R Block, taxpayers who don't pay at least 90% of that amount face a penalty.

If you are receiving a refund, there's no penalty, according to the IRS. But if you don't file a return within three years, you could lose the refund.

If you owe money to the IRS, you face two penalties. The first is for not filing on time, which the IRS says will cost"5% of the unpaid taxes for each month or part of a month that a tax return is late."

You can also receive a penalty for not paying your taxes on time, which amounts to0.5% of your unpaid taxes plus interest.

Want to make a cool interest rate of more than 8% on your tax refund cash?

Late filers who are due a federal income tax refund can use Form 8888 toimmediately invest up to $5,000 of that money in inflation-indexed savings bonds, or I Bonds.

The average interest rate is 8.36% over the 12 months for those who buy the I Bonds before late April.

Study the details of these bonds before signing up at TreasuryDirect.gov. For example, you do not have access to the money in I Bonds for 12 months.

Contributing: Elisabeth Buchwald, Susan Tompor, and The Associated Press

Follow Brett Molina on Twitter: @brettmolina23.

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Tax Day recap: What to know on the last day to file tax returns in 2022 - USA TODAY