Benefits Of Filing Your Taxes Even If You Have No Income
Aside from the aforementioned reasons to file a tax return, there are many benefits that you can capitalize on by filing a tax return despite not having a job. Filing your tax return will make you eligible for certain tax credits that you wouldnt be able to get unless you file it. Here are some of the tax benefits that you can get if you file your tax return.
Canada Child Benefit
Its no secret that raising a child can be expensive. But if you file your taxes, you may be eligible for the CCB benefit. This benefit is a tax-free credit that is paid out each month. You could receive up to $563.75 per month for each child you have that is under 6 years old and $475.66 per month for each child between 6 and 17.
Check out these tax tips for low-income earners.
GST/HST Credit
The Goods and Services Tax or Harmonized Sales Tax is tax-free for individuals and families with a low income. Individuals can receive up to $451, while families and couples can receive up to $592. If you have a child under 19, you can receive an additional $155 per child.
Ontario Trillium Benefit
Depending on the province you live in you may be eligible for other provincial tax credits such as the Ontario Trillium Benefit. This benefit includes 3 types of tax-free payments which are meant to help low-to-medium income families with energy costs as well as property and sales tax. The three benefits included are:
- Northern Ontario Energy Credit
- Ontario Energy and Property Tax Credit
- Ontario Sales Tax Credit
Protect Yourself From Tax
Tax ID theft occurs when someone steals your personal information to file a tax return using your personal data. Usually, the fraudulent tax filer will use your Social Security number to file your return in order to collect a refund. To protect yourself from tax ID theft, you can obtain a six-digit Identity Protection PIN from the IRS. IP PINs are known only to you and the IRS so the IRS is able to confirm your identity when you file your return. Learn more about how the IP PIN works and how to apply.
What Is A 4506
Use Form 4506-T to request a transcript of previously filed tax returns free of charge. It contains most of the line items on your full return and is widely accepted by most lenders. Mortgage lenders and student loan lenders, for example, will often ask you to fill out this form to verify your income. With COVID-19 delaying processing of paper forms at the IRS, an easier and faster option is the IRS online Get Transcript tool.
Best for:People who need a transcript of their tax return free of charge.
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What Are 1099 Forms
1099-G: States will send both you and the federal government a 1099-G form at the beginning of the year, which shows income you received from that state during the previous tax year. The income can include:
- Unemployment compensation.
- State or local income tax refunds, credits or offsets.
- Reemployment trade adjustment assistance payments.
- Taxable grants.
- Agricultural payments.
You will receive a 1099-G in 2021 from any state that gave you money in 2020. This form is where the unemployment compensation you received is listed. Remember: If you made less than $150,000 in 2020, only unemployment benefits over $10,200 are taxable. If taxes were withheld from your unemployment insurance checks, this will be reflected in your 1099-G form.
Best for:People who received unemploymentcompensation.
1099-MISC and 1099-NEC: For tax year 2020 or a prior year, entities or people who have paid you money during the year will mail you a 1099-MISC form for miscellaneous income. If youre a freelancer or a contract worker, you can expect to receive a 1099 form in the mail for each of the people or companies you worked for. Starting with tax year 2020, freelancers will receive the new Form 1099-NEC. There are a number of other reasons you might receive a 1099-MISC form, including if you received monetary prizes or awards, or were paid royalties or rent. Youll use the form to file your own taxes.
Best for:Freelancers, contract workers or anyone who receives miscellaneous income.
At What Age Do I Have To Start Doing My Taxes
There is no age criteria. There is only an income criteria.
If you are your parent’s dependent there is a lower income criteria than if you are not their dependent. A non-dependent has to file a tax return is he has more than $12,000 of gross taxable income.
A dependent must file a tax return for 2018 if he had any of the following:
1. Total income of more than $12,000 .
2. Unearned income of more than $1050.
3. Unearned income over $350 andgross income of more than $1050
4. Household employee income over $2100
5. Other self employmentincome over $400, including box 7 of a 1099-MISC
Even if he had less, he is allowed to file if heneeds to get back income tax withholding. He cannot get back social securityor Medicare tax withholding.
In TurboTax, he indicates that somebody elsecan claim him as a dependent, at the personal information section.
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When Do I Get My Tax Refund
The answer to when will I get my tax refund depends from year to year.
Generally, the IRS has said that about 90% of refunds are issued within 21 days of when the return was received.
You can check on the status of your refund on the IRS website or at our Wheres My Refund page. Live updates will appear the same day e-file opens. Using this tool, you can easily track the progress of your return as it is processed.
What If I Need More Time
Don’t let a looming tax deadline force you to rush through the tax filing process and make a mistake on your return. Simply request an extension.
The IRS grants an automatic six-month extension of the tax filing deadline to anyone who requests it. You can request an extension electronically with TurboTax or mail Form 4868.
Just keep in mind, the tax extension gives you more time to file your return, not more time to pay the tax you owe. You’ll need to estimate the amount you owe and make your payment by the tax filing deadline.
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Don’t Fail To File Because You Don’t Have The Funds
Many people don’t file a tax return because they say they don’t have the money to pay the tax they owe. That’s a major mistake that can cost you a lot of money. The penalty for failing to file a return is 5% of the unpaid taxes for each month that your return is late, up to 25% of your unpaid taxes.
And, if you fail to pay the tax you owe by the April deadline, you’ll have to pay 0.5% of the unpaid taxes for each month that the return is late, up to 25% of your unpaid taxes.
So, pay what you think you’ll owe by April 18. If you’re afraid of receiving a tax bill you know you can’t afford right now, consider applying for a payment plan. And if you don’t think you can finish your return in time, request an extension by April 18 and you won’t have to submit your return for six months or until Oct. 17.
Members Of The Military
If youre stationed outside the United States or Puerto Rico on May 1, you have until to file your return and pay any taxes you owe.Enclose a statement explaining that you were out of the country, and write Overseas Rule on the top of your return and on the envelope.
Combat ZoneIf youre serving in a combat zone, you receive the same filing and payment extensions allowed by the IRS, plus an additional 15 days, or a 1-year extension from the original due date. If you claim this extension, write Combat Zone on the top of your return and on the envelope. For more information, see Tax Bulletin 05-5. Extensions also apply to the spouses of military members who are serving in combat zones.Military Deployment Outside the United States Combat or NoncombatIf youre deployed to military service outside the U.S., youre allowed a 90-day filing extension following the completion of deployment. If youre using this extension, write Overseas Noncombat on the top of your return and the envelope.Note: If youre deployed in combat service, you can use whichever extension is more beneficial for you .
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What Time Is The Deadline For Filing Your Federal Tax Return
First of all, the deadline for filing federal taxes this year for the majority of US taxpayers is midnight on Monday, April 18.
However, taxpayers in Maine and Massachusetts have until April 19 due to the observance of Patriots Day in both states.
Meanwhile, victims of winter storms in parts of Illinois and Tennessee have until May 16, while wildfire victims in Colorado have until May 16 as well.
Also, for those serving in the military abroad, you may be granted additional time to file your federal tax return.
Tax Filing Deadline For Maine And Massachusetts Residents
Residents of Maine and Massachusetts get an extra day until April 19 to file their federal income tax return. Why? Because Patriots’ Day, an official holiday in Maine and Massachusetts that commemorates Revolutionary War battles, falls on April 18 this year. So, for the same reason Tax Day is moved from April 15 to April 18 for most people , the IRS can’t set the tax filing and payment due date on April 18 for taxpayers in those two states. As a result, the deadline is shifted to the next business day for Maine and Massachusetts residents, which is April 19.
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Quebec Residents With Employer In Another Province
Because Quebec residents must file separate federal andprovincial tax returns, there is one more step for Quebec residents who paidtax in another province. Ifincome tax was paid to another province or territory, youmay request a tax transfer to the province of Quebec tooffset your Quebec provincial taxes payable. You maytransfer up to 45% of the tax shown on information slipsfrom payers outside of Quebec. This is done byentering the desired transfer amount on line 43800 of thefederal tax return and line 454 of the Quebec tax return.
Extension Of Time To File
- Current: Extension of Time to File
What should you do if you cannot file your Indiana individual income tax return by the due date?
Here’s what you need to know:
- The due date for 2020 Indiana Individual Income Tax Returns was extended from April 15 to May 17, 2021.
- If you have a federal extension of time to file, you automatically have an extension of time to file with Indiana. You must file your 2020 state tax return by Nov. 15, 2021 and pay any balance due with that filing. While interest is due on any amount paid after the May 17, 2021 due date, penalty will be waived if both of the following conditions are met:
- You paid at least 90% of the tax expected to be owed by the original May 17, 2021 due date, and
- The remaining balance due is paid in full by Nov. 15.
The form and any payment due should be sent to:Indiana Department of RevenueP.O. Box 6117Indianapolis, IN 46206-6117
*You may also file this application electronically by visiting at intime.dor.in.gov.
Additional Information:
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When Will I Get My Tax Refund
The IRS says 90% of people who e-file their tax return should get their federal refund within 21 days. In general, the IRS ensures filers that the quickest and safest method for getting a federal refund is filing electronically and opting for direct deposit.
If your tax return was flagged by the IRS for errors, manual processing, or fraud detection, your refund could take longer.
To find out when your refund is coming, use the tracking tool on the IRS website beginning 24 hours after e-filing your return. You’ll need your exact refund amount, Social Security number or taxpayer ID number, and filing status.
Natural Disaster Victims Get Tax Filing And Payment Extensions
If the Federal Emergency Management Agency declares a disaster area following a natural disaster, the IRS usually jumps in with tax relief for the disaster victims in the form of tax filing and payment extensions. In the case of certain recent natural disasters, the April 18 tax filing and payment deadline has been extended for individuals and businesses residing or located in the disaster area.
So far, victims of the following natural disasters have been granted extensions that push back this year’s federal personal income tax filing and payment deadline:
- Wildfires and straight-line winds in Colorado that began on December 30 .
Additional extensions may be announced later that impact this year’s tax return filing due date.
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How Do I Get Help Filing My Taxes Online
If at any point you have a question about your taxes or the software, you can browse answers on our online help forum 24/7, or post a question for our online community of users and experts. While youre filing you may realize that youre looking for more guidance or help with your taxes. In that case you can upgrade to a different TurboTax Online product at any time without losing any of the data youre already entered.
Need more help? TurboTax Live Assist & Review gives you unlimited tax advice from one of our tax experts as you do your taxes, plus a final review before you file to make sure you didnt miss anything. Or if you want to hand off your taxes to one of our experts, TurboTax Live Full Service allows you to simply upload your documents and our experts will complete and file your return for you.
What I Still Need To Pay The Irs
That’s right getting an extension to file your tax return doesn’t give you an extension on paying what you owe the government.
The IRS expects people to make an effort to pay what they owe, Betterment’s Bronnenkant said. That may be difficult for people who haven’t yet filled out their tax returns, but it’s best to make a good-faith estimate.
“If your prior year is a good barometer for your current year, start with that as a way to come up with some sort of reasonable estimate,” Bronnenkant said. “Don’t let perfect be the enemy of good enough.”
For instance, if you estimate that you owe $10,000 but end up actually owing $11,000, you’ll be charged an underpayment penalty. But it will be less painful to face an underpayment penalty for $1,000 rather than the entire $11,000 that you owe, Bronnenkant noted.
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What Are The Penalties If I Don’t Pay Enough
The failure-to-pay penalty is less punitive than the one for failing to file. The IRS charges 0.5% of the unpaid taxes for each month, with a cap of 25% of the unpaid taxes.
Take someone who pays an estimated tax of $10,000 by April 18, but it turns out they actually owe $11,000. They’ll face a 0.5% charge on the extra $1,000 they owe the IRS. If they file in June two months after the tax deadline they would owe $10.
Do File Your Tax Return On Time
The good news is you have extra time to file your taxes this year. The federal tax-filing deadline is Monday, April 18,for most taxpayers, not the traditional April 15 date. So, you have three additional days. The later date is due to the Emancipation Day holiday in the District of Columbia. By law, Washington, D.C., holidays impact tax deadlines for everyone in the same way federal holidays do.
And taxpayers in Maine or Massachusetts have until April 19 to file their returns due to the Patriots Day holiday in those states. April 18 is the filing deadline for most state tax returns, too, but some states have different deadlines. Make sure to double-check your states tax filing deadline.
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How To File Your Federal Taxes: A Comprehensive Guide In 2022
Posted by Hasham Usman | Jun 27, 2022 | Taxes | 0
Its tax season! Arent you excited!?! But seriously, the Federal Tax Code is no joke. It can be confusing, stressful, and overwhelming. But dont worrywe are here to help you. In this guide, we share with you everything you need to know about how to file your federal taxes in a way that is accurate and stress-free.
How to File Your Federal Taxes: A Comprehensive Guide in 2022
How And When To File Your Tax Return
Learn how to fill out your return using tax preparation software or on paper.
The deadline for filing personal income tax returns and paying outstanding income tax is . After April 30, penalties and interest start to apply to any outstanding balance owed.
If you are self-employed or filing for someone who has passed away, please see the CRAs website for filing deadlines.
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