The Taxman Cometh

April showers may bring spring flowers, but in the U.S. mid-April is also when federal income taxes must be filed. 

It's a double tax whammy as state income taxes are due in all but 9 of 50 states. Many states align their tax return deadline with the federal one; some have different deadlines.

FYI those 9 states with no state income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. (NH doesn't tax earned income, but does tax investment income and dividends; TN taxes investment income.)

And, April at this time the phrase—nothing is certain but death and taxes—comes to mind.

Benjamin Franklin

It's long been attributed to jack-of-all-trades and master of many, Benjamin Franklin (American writer, scientist, inventor, statesman, diplomat, printer, publisher, and political philosopher).

In November 1789, Franklin wrote to French scientist and physicist Jean-Baptiste Leroy, also a pioneer in the study of electricity and a personal friend. Franklin, who was concerned about Leroy, updated him about the major event in the United States, the ratification of the Constitution in June 1888. Franklin wrote: Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes. 

The federal tax filing deadline is traditionally, April 15, except when it's not. In 2021, the filing deadline for the 2020 tax year was extended from April 15 to May 17 because of the coronavirus pandemic. 

This is the 2022 filing date for most folks

For 2022, the federal tax filing deadline for 2021 is not Friday, April 15—it's Monday, April 18. 

When a tax deadline falls on a Saturday, Sunday or holiday, it pushes forward to the next available business day. But April 15 is a Friday, so that weekend rule doesn't apply. 

This year, two major religious observances either occur or start on April 15. 

It's Good Friday, a Christian holy day that commemorates the crucifixion and death of Jesus Christ and the first night of Passover, the Jewish holiday that celebrates the Israelites exodus from slavery in Egypt.

Thus, you might conclude that's why the tax deadline has been changed, especially as the official U.S. motto is In God We Trust.

That's not it at all—dual religious observances had nothing to do with this year's date change.

It's because of a legal holiday only in Washington, DC, Emancipation Day. In 2005, it became a regional government holiday observed in DC to mark the April 16, 1862 date that President Abraham Lincoln signed the District of Columbia Compensated Emancipation Act that freed over 3,000 slaves in the DC area. It's celebrated on the weekday nearest April 16. Yet, celebration festivities will take place Saturday, April 16, and streets near the White House and National Mall will be closed to traffic.

The holiday is notable beyond Washington as it affects the usual April 15 tax returns due date for all most Americans (exceptions in next paragraph). This holiday status means that the Internal Revenue Service (IRS) can't require returns to be filed on the 15th, a legal holiday. Since April 16 and 17 is a weekend, 2022 tax filing day falls on the next business day, Monday, April 18.

Except for residents of two New England states where the filing deadline is Tuesday, April 19 (New Hampshire is not one of these). Do you know which 2?

Patriots' Day is a holiday in ME and MA

Again, the delay is for a legal holiday—Patriots' Day, which commemorates Revolutionary War battles on the third Monday in April, which in 2022 is April 18, an official state holiday in Maine and Massachusetts. This means that taxpayers in those states get until April 19, the next business day to file.

Patriots' Day is also the annual running of the Boston Marathon. Managed by the Boston Athletic Association, it's been run every Patriots' Day since April 1897 even during WWI and II. Fifteen men ran the inaugural race. This year, 30,000 runners are expected to start the 126th race.

What's the connection between a marathon and Revolutionary War battles? 

It's about name association. The word marathon comes from the Battle of Marathon, a Greek battle in 490 B.C between outnumbered citizens of Athens and invading Persian forces. 

Pheidippides giving word of the Greek victory over Persia at the Battle of Marathon to people of Athens. Painting by Luc-Olivier Merson (1869)

As legend goes, Pheidippides, a Greek messenger, ran 25 miles from the Marathon battlefield to Athens to announce defeat of the Persians. But, after announcing the news and shouting Nike! Nike! Nenikekiam (Victory! Victory! Rejoice, we conquer) the exhausted runner collapsed and died. One of the men in the Greek military known as day-long runners, he remains the central figure in a story that inspired the current sporting event. A marathon is more than an endurance test. It symbolizes the struggle for liberty and freedom for the Greeks and later Americans.

U.S. taxpayers who don't live in Washington, DC, Maine, or Massachusetts and, thankfully, were not victims of any natural disaster (those affected receive extended filing time) must file by Monday, April 18. If a payment is owned, late filers will wait until midnight, some post offices stay open late. All that matters is that a return be postmarked by the due date to be on time.

As for Franklin's famous words about death and taxes, there's some question over whether his letter is the origin of the phrase. Similar wording appeared in the 1700s from two British authors.

In 1716, British actor and dramatist Christopher Bullock wrote in The Cobbler of Preston, a comedy play: Tis impossible to be sure of any thing but Death and Taxes.

Daniel Defoe

Ten years later in 1726, the author of Robinson Crusoe, English writer Daniel Defoe, wrote in The Political History of the Devil: Things as certain as death and taxes, can be more firmly believ’d. Defoe wrote many political tracts which led to him spending time in prison. 

There's another way to avoid taxes without dying and that's by relocating to another country Bermuda, Monaco, the Bahamas, and the United Arab Emirates (UAE) are four countries without personal income taxes. Moving might seem tempting, but unless you renounce U.S. citizenship, you'll deal with Uncle Sam annually.

The Beatles 1966 song written by lead guitarist George Harrison also protested against higher taxes. Harrison's inspiration for the lyrics came after he learned how much of the group's earnings went right to the British Treasury. This was the group's first topical song and the first political statement made in their music.

If you're in a taxing mood, give a listen.

A final note is that while the taxman cometh and often taketh, millions of 2020 on-time taxpayers (like ourselves) have found that the taxman giveth doesn't hold true as we're all still waiting for refunds from last year's filing. IRS officials blame the pandemic stating that many employees worked from home with offices shut down. We filed our 2021 return on time this year and a payment was due which, unfortunately, could not be deducted from the overdue 2020 refund.

If you're on the 2020 tax refund wait list, this January 2022 report by National Taxpayer Advocate Erin M. Collins, available on the IRS website here, provides very detailed information on processing and refund delays. The report notes that these delays led to many customer service problems and provides recommendations for better addressing these issues.

No Friday Funnies this week as April 15 marks two religious observances mentioned earlier. 

Happy Easter & Sameach Pesach to everyone who celebrates