Can I Get An Extension
Sure, but make sure you pay up what you owe by May 17 in order to avoid late payment interest and possible penalties. See Form 4868.
The IRS notes: “You dont have to explain why youre asking for the extension.”
The extension will give many taxpayers up to Oct. 15 to file their 2020 return. But remember you’re not getting any extra time to pay what you owe the federal government.
Filing an extension allows you more time to complete and file a tax return, say if you don’t have all the paperwork in order yet.
But remember, you might not want to file for an extension especially if you have your paperwork if you have children and can qualify for the Child Tax Credit where you might start seeing some extra money this summer.
What Doesnt The Tax Deadline Extension Apply To
Remember that the federal governments May 17 income tax deadline extension only applies to your federal taxes. Most states have left their normal tax deadlines in place, but five states have later tax filing deadlines.
Find your state governments tax agency website on the Federation of Tax Administrators list to learn more.
|2021 State Income Tax Deadlines|
|Wyoming||No state return necessary|
If you need even more time to complete your 2020 federal returns you can request an extension to Oct. 15 by filing Form 4868 through your tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until Oct. 15 to file their 2021 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.
If you mail in your return, it must be postmarked May 17 or sooner. Heres a tax refund schedule to give you an idea when to expect your refund after youve filed. If you cannot file your tax return by the deadline, you need to file for a tax extension by May 17, 2021.
Its also important to note that the income tax refund schedule remains unchanged. This serves as an incentive for people to still file sooner rather than later.
State Taxes Paid For A Prior Year
If you paid state, local or foreign income taxes for a prior year, you can deduct them on your tax return. The IRS allows a tax deduction if the tax was imposed on you and you were required to pay it during the year. Examples of deductible taxes are real estate taxes, general sales taxes and personal property taxes. You would need to itemize your deductions using Schedule A of Form 1040 to qualify for the deduction.
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Between Due Dates For Extension Requests Ira Or Hsa Contributions And Other Deadlines There’s More To Do By Today’s Tax Deadline Than Just Filing Your Federal Income Tax Return
Time is running out if you haven’t filed your 2020 federal tax return yet. While this year’s tax deadline was pushed back from April 15 to May 17 to give people more time to file a Form 1040, the day of reckoning is finally here. But filing your federal tax return isn’t the only thing you should be thinking about today there are a few more tax deadlines to worry about, too.
You might want to take some action today if you’re saving for retirement or college, have a health savings account, or employ a nanny. There are other reasons why you might have a tax-related deadline today, too. And, of course, overlooking a tax deadline could cost you money either in additional taxes, penalties, or interest. So, as a quick reminder, here are 9 tax deadlines for today that you don’t want to miss. Check them out to see if something unexpected applies to you.
Where Can I Find Help With My Taxes
You can find helpful and affordable assistance by choosing a provider from CNET’s roundup of the best tax software for 2021. But the IRS does offer some free tax help, too. The Volunteer Income Tax Assistance program is designed to offer guidance to people who make less than $54,000 per year, have disabilities or have limited facility with English. And the Tax Counseling for the Elderly program specializes in tax issues that affect people who are 60 or older. Due to COVID-19, however, many VITA sites, and all TCE sites, have been closed. For now the IRS’ International Taxpayer Service Call Center remains available at 267-941-1000, Monday through Friday, 6 a.m. to 11 p.m. ET.
Things To Know About The Tax Deadline Extension
So what does the tax extension mean for you? Here are seven things you should know if youre trying to decide whether you should take advantage.
1. You dont have to do anything to get the extension.Like last years extension, which gave taxpayers an extra three months to file returns, this one is automatic. The IRS wont penalize you as long as you file by May 17.
2. The IRS is still processing returns as usual.If youre getting a refund and you dont need more time to get your return in order, theres no reason to wait until May 17 to file. Same goes for if you know you owe money and you can afford to pay it. Most online returns are processed within 21 days, according to the IRS.
But whatever you do, DO NOT file a paper return. The IRS is still working through a monstrous backlog of 2019 returns submitted by mail. If you file on paper, youll likely be waiting for them to process your return for months.
3. Waiting to file could delay your stimulus money.If youre eligible for stimulus money and you havent received it, your 2020 tax return could be your ticket to cash. If youve never filed before and no one can claim you as a dependent for 2020, filing a return could get you $3,200: an $1,800 rebate recovery credit from the first two payments of $1,200 and $600, plus the latest $1,400 stimulus check.
Federal Individual Tax Returns And Income Tax Payments Are Due By May 17
If you typically file Form 1040, an individual federal tax return, you now have until May 17, 2021, to file your tax return and pay outstanding income taxes. Typically, this includes individual tax filers and self-employed people who report income and expenses on a Schedule C form.
As in normal tax years, you still have to file an extension if you need to file after May 17. You can request more time by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, with the IRS on or before May 17.
Youll have until October 15, 2021 to file your return but you still need to pay any taxes owed by May 17.
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File To Reduce Penalties And Interest
Normally, taxpayers should file their tax return, or request an extension, and pay any taxes they owe by the deadline to avoid penalties and interest. An extension to file is not an extension to pay. Penalties and interest will apply to taxes owed after May 17.
Even if a taxpayer can’t afford to immediately pay the taxes they owe, they should still file a tax return as soon as possible to reduce possible penalties. The IRS has more information for taxpayers who owe the IRS, but cannot afford to pay.
Ordinarily, the failure to file penalty is 5% of the tax owed for each month or part of a month that a tax return is late, up to five months, reduced by the failure to pay penalty amount for any month where both penalties apply. If a return is filed more than 60 days after the due date, the minimum penalty is either $435 or 100% of the unpaid tax, whichever is less. Filing and paying as much as possible is important because the late-filing penalty and late-payment penalty add up quickly. The failure to pay penalty rate is generally 0.5% of unpaid tax owed for each month or part of a month until the tax is fully paid or until 25% is reached. The rate is subject to change. For more information see IRS.gov/penalties.
Interest is charged on tax and penalties until the balance is paid in full.
When Are Taxes Due
The federal tax deadline is automatically extended for individuals this year. Tax returns and payments for 2020 are now due on May 17, 2021.
Due to winter storms, the federal deadline for people in Texas, Louisiana, and Oklahoma is June 15, 2021.
State tax deadlines vary. Check your state’s government website.
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What Other Penalties Are Assessed On Taxpayers
Taxpayers can be assessed many penalties in addition to the late filing and late payment penalties. There is the underpayment penalty which applies if you owe more than $1,000 and you have a wage income or you owe when you are self-employed. The underpayment penalty is assessed because the tax code says you must prepay your taxes through withholding or estimated payments.
How Do I Check The Status Of My Refund
The IRS website features a handy web-based tool that lets you check the status of your refund, and there’s also a mobile app, IRS2Go. You can usually access your refund status about 24 hours after e-filing or four weeks after mailing in a return. To check your status, you’ll need to provide your Social Security number or ITIN, filing status and the exact amount of your refund. If your status is “received,” the IRS has your return and is processing it. “Approved” means your refund is on its way.
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What Is The Last Day To Contribute To My Retirement Account For 2019
As with other elements of the extension, individuals can wait to make 2019 contributions to their retirement accounts normally due April 15, 2020 until July 15, 2020. Consider using this extra time to set aside more money in your retirement accounts if you’re able. You can contribute a maximum of $6,000 to an IRA for 2019, plus an extra $1,000 if you’re 50 or older.
You don’t need to wait to file your tax return to make this contribution, however. If you know how much you’ll contribute by the tax deadline, you can count this on your tax return and make the actual contribution by the new deadline.
How To Request An Extension To File
To get an extension to file, the IRS urges taxpayers to do one of the following:
- File Form 4868 through their tax professional, tax software or by using Free File on IRS.gov.
- Submit an electronic payment with Direct Pay, Electronic Federal Tax Payment System or by debit, credit card or digital wallet and select Form 4868 or extension as the payment type.
An automatic extension of time to file will process when taxpayers pay all or part of their taxes electronically by the Monday, May 17 due date.
Some taxpayers may have extra time to file their tax returns and pay any taxes due. This includes some disaster victims, taxpayers living overseas, including members of the military, and eligible support personnel serving in combat zones.
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Mileage Driven For Charitable And Medical Purposes
Did you volunteer for your favorite charity? Did you travel to your doctors office for checkups and procedures? The IRS will allow you to claim mileage for both medical and charitable purposes during the year. To qualify, you must itemize your deductions on Schedule A of your Form 1040. For the 2020 tax year, you can claim 14 cents per mile for charity and 17 cents for medical.
You should itemizeincluding medical, dental, charitable, mortgage interest, taxes and other deductionsif your deductions are greater than your applicable standard deduction. Generally, the 2020 tax standard deduction for a married filing joint taxpayer is $24,800. For a single and head of household filer, the amount is $12,400 and $18,650, respectively.
Reasons For The Tax Deadline Extension
Many Americans file their taxes online and never meet an accountant face to face. For these individuals, there is minimal, if any, risk of directly spreading COVID-19 through the filing process. However, not all Americans have this luxury, as many individuals need to meet with an accountant in person. Many free tax preparation services, like Volunteer Income Tax Assistance and Tax Counseling for the Elderly , are held in public spaces and may be currently inaccessible.
The extension also gives people extra time to gather their records or access a computer. These are key in helping people file electronically, which is the optimal way to speed up the refund process. Although these reasons might seem fairly trivial, the newly introduced practices of social distancing can makes things much more difficult. Therefore, an extension affords people a little extra time to get their taxes and financial affairs in order.
Perhaps most importantly, the extension may be crucial for taxpayers who owe the government money. The coronavirus pandemic has already had a significant negative impact on the economy, including business closures and job losses. Those who are experiencing financial pressures likely appreciate the extra time.
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Do I Need To File A Us State Tax Return As An Expat
Whether or not you need to file state taxes as an expat will depend on the state you lived in before moving abroad and your residency status. Some states do not require expats to file state taxes, while others make it difficult to avoid this requirement.
If you, your spouse, or your children have lived in a state at some point during the year, you maintain residence in a state, or you keep a drivers license, ID card, or voting rights in a state, you may be required to file a US State Tax Return.
Pay Taxes Due Electronically
Those who owe taxes can pay with IRS Direct Pay, by debit or credit card or apply online for a payment plan . For more electronic payment options visit IRS.gov/payments. They are secure and easy to use. Taxpayers paying electronically receive immediate confirmation when they submit their payment. With Direct Pay and the Electronic Federal Tax Payment System , taxpayers can opt in to receive email notifications about their payments.
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What Do I Do About Missing Tax Forms
If you haven’t received your income forms, you should first contact the employer and request a copy or ask that it be re-sent. If that doesn’t work, you can then contact the IRS at 800-829-1040 . You’ll need to provide the following information:
- Name, address, Social Security number, and phone number
- Your employer’s name, address, and phone number
- Dates you worked for your employer
- An estimate of your paid wages and federal income tax withheld during 2020
How Long Will It Take To Get My Refund
The IRS is experiencing delays this year, so some refunds are taking 21 days or longer. Your refund is most likely to be delayed if you file by mail instead of e-filing or the return has to be reviewed because of incorrect information relating to tax credits.
Once your taxes are filed, you can check the status of your refund here. Youll need the exact amount of your refund to access the information, so keep track of that when you file.
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How Do I Prevent Fraud
It’s easy to procrastinate filing your taxes, but putting it off makes you more vulnerable to fraud. If a scammer gets hold of your Social Security number and you haven’t filed a tax return yet, they could easily file a fake one in your name to get a refund.
Scam calls are ubiquitous during tax season. Keep in mind that if the IRS needs to get in touch with a taxpayer, it sends a letter not an email, not a phone call, and definitely not a message over social media. Especially when it’s investigating cases of tax fraud or performing an audit.
Never return a phone call from someone claiming to be with the IRS. Instead, individuals should call the IRS directly at 800-829-1040, and businesses should call 800-829-4933.
The US Department of Justice says the IRS never discusses personal tax issues through unsolicited emails or texts, or over social media. Always be wary if you are contacted by someone claiming to be from the IRS who says you owe money.
If you receive an unexpected and suspicious email from the IRS, forward it to .
You Have More Time To Contribute To Individual Retirement Accounts And Health Savings Account
The new postponement provides not only more time to file and pay your taxes, but also gives you more time to contribute to certain accounts, which can potentially reduce your taxes, increase a refund, and help you sock away more for retirement and health care.
Typically, you must contribute to an individual retirement account or health savings account by April 15. Robert Karon, a certified public accountant with CBIZ MHM in Minneapolis says both regular IRA and Roth IRA contributions can now be made until May 17.
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