Don't Mess With Taxes

You thought you'd get a break from taxes when summer arrived, didn't you? Sorry.

June, the first month of summer, also includes tax deadlines for some taxpayers.

If you're a U.S. taxpayer who is living and working abroad, including members of the Armed Forces posted overseas, June 15 is your Tax Day. You must file your 2021 tax return by then.

June 15 also is the due date for the second estimated tax payment of 2022. This applies to folks who make money that isn't subject to withholding tax.

And some folks in Puerto Rico who suffered through major flooding back in February now face a postponed Tax Day that's also June 15.

Here's a quick look at all these circumstances that qualify for next week's June 15 Tax Day redux.

International, including military, taxpayers: When it comes to individual taxes, the tax code doesn't care where you live. If you're a U.S. citizen or resident alien, including those with dual citizenship, you must pay tax to Uncle Sam.

The same applies to members of the U.S. military who are posted at foreign facilities.

The good news is that the two-month extension from the regular April tax deadline is automatic. You didn't have to file any kind of form to get the extra filing time.

The bad news is that your extended due day is almost here. It's next Wednesday, June 15.

There are some tax considerations for taxpayers abroad, such as exemptions for some of the money earned in another country. There also are some provisions for expensive global housing costs that could help lower your U.S tax bill.

And some service members could get even longer, but it's not an ideal reason. Members of the military qualify for an additional extension of at least 180 days if they are serving in a combat zone or a contingency operation in support of the Armed Forces.

But in the final accounting, the Internal Revenue Service expects you to do all the calculations and meet the June 15 Form 1040 deadline. If you can't, then this time you do need to file Form 4868 to get until Oct. 17 to file your return.

You can find more about tax responsibilities of Americans living abroad in my previous post Taxpayers abroad get until June 15 to file tax returns. Also check out the IRS reminder to Americans abroad about the impending deadline.

If you're in the military, check out my post Tax tips for members of the U.S. military. The IRS has more armed forces tax information, too, at its special IRS.gov military tax information page and in IRS Publication 3, Armed Forces' Tax Guide.

Estimated tax deadline for filers everywhere: June 15 also is the due date for the second estimated tax payment for tax year 2022.

Next Wednesday, you need to send the payment amount to the IRS, either electronically or, if you're old-school, as a check or money order along with the 1040-ES payment voucher (shown below). If you're mailing the payment, the IRS considers your payment timely as long as the envelope is postmarked June 15 by the U.S. Postal Service.

The estimated payments are four extra amounts paid by certain due dates to cover the tax due on money that isn't subject to withholding.

This includes earned income from contract-freelance-gig work for which, depending on the amounts you make, will be reported to you and the IRS on a 1099-NEC form next January.

Estimated taxes also should be paid on unearned income, such as investment distributions, whether you get the cash or its reinvested. Or any investments you've sold. Again, the IRS will know of this via a 1099-INT or 1099-DIV or 1099-B.

The estimated amount for the June payment covers money you received in April and May. Yeah, the IRS estimated tax calendar is a bit screwy. The table below shows when payments are expected for what periods.

If you don't pay on time, or pay enough for a quarter, you could face added penalty charges at tax filing time next year.

You can read more about estimated taxes in my post from back in April, A quick estimated tax Q&A in advance of the April 18 deadline. Also check out the IRS' recent release about the deadline for those who pay estimated taxes.

Sorry, there's no extension for estimated tax payments, so be sure to meet the upcoming due date.

Puerto Rico (PR) disaster deadline: In February, some parts of the United States' nearby island territory were hit by severe storms, flooding, and landslides. Following a Federal Emergency Management Agency (FEMA) major disaster declaration, the IRS announced tax relief for these U.S. taxpayers.

The special tax consideration applies to individuals and households, as well as businesses, in the Puerto Rican municipalities of Cataño, Dorado, Toa Baja, Vega Alta, and Vega Baja.

These taxpayers were given until June 15 to file various tax returns and make tax payments that normally would be due between Feb. 4 and the regular Tax Day, which was April 18 this year.

The The disaster-affected PR taxpayers also were granted more time to make their first estimated tax payment, which was due on April 18. Now they must make payment #1 and payment #2 on June 15.

If you're one of the Puerto Rican taxpayers given this disaster extension, get your tax form and payments to the IRS by next Wednesday, June 14. If you can't, you can file for extension to complete your 1040 by Oct. 17.

Today's tax number: Finally, it's Sunday, the usual day for announcing the weekly By the Numbers figure.

I'll give you three guesses of this weekend's selected numeral, and the first two don't count.

You got it. It's June 15.

If that date applies to your personal tax situation, don't miss it!

You also might find these items of interest:

• The scoop on paying estimated taxes
• American expatriates don't like paying U.S. taxes
• IRS and other government resources can help you deal with a natural disaster
• Inflation adjustments for 2022 taxes that apply to Americans living and working abroad

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