2022 Tax Filing and Payment Relief for California Taxpayers – Get The Facts Now

The IRS has once again extended the tax filing and payment deadlines in most parts of California due to destruction caused by landslides, mudslides, and severe storms. Now those Californians have until October 16th to file, as opposed to the previously announced May 15th date.

The IRS has extended the fourth quarter 2022 estimated tax payment deadline to October 16th. The 2023 estimated tax payments due on April 18th, June 15th, and September 15th, as well as the quarterly payroll and excise tax returns due on January 31st, April 30th, and July 31st, have also been delayed until October 16th. No contact or extension paperwork is necessary to take advantage of the extended time. If taxpayers receive penalty notifications within the postponed period, they should contact the number provided for the penalty to be waived.

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Watch out for Non-deductible Wellness Expenses Scams

The IRS recently issued a reminder that personal expenses for general health and wellness usually do not qualify as medical expenses for tax purposes. These costs are generally not eligible for reimbursement through a health flexible spending arrangement (FSA), health savings account (HSA), medical savings account (MSA) or health reimbursement account (HRA). General wellness purchases also typically cannot be claimed as itemized tax deductions.

Examples of non-deductible, non-reimbursable health and wellness purchases include healthy foods for weight or blood sugar management. Dishonest companies aggressively market food and wellness products, claiming that these items become eligible for FSA/HSA/MSA/HRA reimbursement when the seller provides a doctor’s note to the buyer.

In reality, a doctor’s note generally does not change an ineligible expense into an eligible one. Requests for FSA reimbursement based on these bogus marketing claims typically get denied, and may jeopardize the tax advantages of FSAs and similar plans.

Under IRS rules, a health expense only qualifies for reimbursement if it directly relates to “a targeted, diagnosis-specific activity or treatment.” In other words, the expense must be part of a treatment plan created by a medical professional to address a diagnosed illness or medical condition. If you are unsure whether a particular health expense qualifies for reimbursement, check with your workplace benefits plan administrator before making the purchase.