What You Need to Know About Filing Your 2022 Taxes Late

Even though the deadline to file your taxes for 2022 was April 18, 2023, it’s still not too late to file. Generally, filing late is much better than not filing at all. Most lower-income taxpayers will get a large refund or “return” if they file.

If you qualify for a tax refund, there is no penalty for filing late. But even if you owe tax, it’s still better to file as quickly as possible to minimize penalties. The good news is that free tax preparation may be available to you.

Below is everything you need to know about filing your taxes late. If you have questions, you can contact Grace Allison at the New Mexico Legal Aid Low Income Taxpayer Clinic at 505-768-6134.

Frequently Asked Questions:

Filing 2022 Taxes after April 18, 2023

Q1.     Is it better to file late or not to file at all?

A1.      Generally, filing late is much better than not filing at all. Most lower-income taxpayers will get a large refund or “return” if they file.

Here’s some of what you may be able to claim on your IRS Form 1040:

• Earned income tax credit.
  • If you worked in 2022, claiming the EITC can mean a refund of up to $6,935 for those with qualifying children age 18 or under (as of the end of 2022). No children? Your EITC may be as much as $560.

• Child tax credit and “additional” child tax credit.
  • Available to those with “qualifying children” age 16 or under (as of the end of 2022).
  • The child tax credit can reduce your tax by up to $2,000 per child.
  • If you can’t get the full benefit of the child tax credit (for example, you don’t owe tax), you may receive an “additional” child tax credit of up to $1,500 per child, depending on your earnings.
• Excess withholding.  If your federal income tax withheld in 2022 is more than your 2022 IRS income tax liability, you will get that excess back only if you file.

Here’s some of what you may be able to claim on your NM PIT-1: 

• Excess withholding. If your NM income tax withheld in 2022 is more than your 2022 NM income tax liability, you will get that excess back only if you file.
• NM Working Families Tax Credit.  This credit is based on earned income and is equal to 20% of your federal EITC. It is available to NM residents with either SSNs or ITINs.
• NM Low-Income Comprehensive Tax Rebate (“LICTR”). If you are a NM resident and your “modified gross income” is $36,000 or less, you may be eligible to receive up to $730 as a refund.

Other reasons to file:

• You can use your filed income tax return to prove your income to social services agencies, schools, and colleges.
  • Immigration officials check your tax return filing history.
  • By filing, you create a record of earnings for future social security benefits.

Q2.     Do I need to get an extension to be able to file now?

A2.      You don’t need an extension to file—and, in fact, it’s too late to get one now. (April 18, 2023, was the deadline.)

• Note: An extension to file is not an extension to pay.

Q3.     How do I get my 2023 New Mexico rebate?

A3.      You will receive a 2023 New Mexico rebate ($500 for singles, $1,000 for marrieds and heads of household) automatically if you filed a 2021 PIT-1 already or if you file it now. The deadline to file and receive the rebate is May 31, 2024.

Q4.     Can I still get my taxes prepared for free?

A4.      Yes. Free do-it-yourself 2022 federal tax filing software is available at www.irs.gov/filing/free-file-do-your-federal-taxes-for-free through October 16, 2023.

• For those in Central New Mexico, Tax Help New Mexico is available to prepare 2022, 2021, and 2020 returns. Beginning July 5, 2023, you can schedule an appointment for the first in-person tax preparation event on July 19. Call 505-750-3885 to schedule an appointment and ask about other available dates. Appointment scheduling and other information may also be available at www.Taxhelpnm.org.
• You can also file your New Mexico return by using the Taxpayer Access Point system: https://tap.state.nm.us/_/

Q5. I didn’t file an extension on or before April 18, 2023. Will there be penalties for filing late? What about interest?

A5. There are separate penalties for filing late and paying late.

• If you owe tax, you should file as quickly as possible to minimize those penalties.
  • An “extension” only extends the time to file. It does not extend the time to pay.
  • If you will be getting a refund, there is no penalty for filing late.

For personal income tax due to the IRS

• A special minimum failure to file penalty of $450 may apply.
• The late-filing penalty for the IRS is 5% of your unpaid taxes; the late payment penalty is 0.5% of the tax due.
• If you both file late and pay late, the combined penalties are capped at 25% of your unpaid taxes. Unfortunately, there is no limit on interest charges.
• Interest on unpaid IRS tax is currently 7%.

For personal income tax due to New Mexico

• New Mexico combines the late payment penalty and the late filing penalty. The combined penalty is 2% of the tax due (up to a maximum of 20% of the unpaid tax.
• Interest on unpaid balances is currently 7%.