Do Not Risk Having Your Benefits And Credits Interrupted
Doing taxes on time is the best way to ensure your entitlement to benefits and credits, like the Canada child benefit , the Old Age Security pension payments, and the goods and services tax/harmonized sales tax credit, are not interrupted. Even if you owe tax, dont risk having your benefits and credits interrupted by not filing. If you cannot pay your balance owing, the CRA can work with you on a payment arrangement.
A Shelby Township Man Wonders
James Hanlon filed his return in late March but he and his wife Janice continued to wait around the Fourth of July for what they thought would be a tax refund of around $4,800.
“My tax return has been in a black hole for three months now,” said Hanlon, who lives in Shelby Township.
Hanlon, 71, retired from a job as a retail help desk manager at Comerica Bank. He likes to problem solve and has prepared his own tax returns for years using TurboTax. He remembers one issue several years ago when he mistakenly missed reporting capital gains from a mutual fund. But otherwise, he said, everything has been fine working with tax software.
He isn’t sure what created the delay. But after hearing that the IRS had;issues relating to the Recovery Rebate Credit, he began to wonder;if that was the trouble spot.;
The Recovery Rebate Credit found on Line 30 of the 1040 form was brand-new on the 2020 income tax returns. The worksheet itself doesn’t use the words “stimulus payments” but that’s what the worksheet involves.;
The one-page worksheet has 21 lines and talks of EIP 1 and EIP 2 and says to put in a zero on some lines;if $2,400 was received for EIP 1 for a couple and $1,200 was received for EIP 2 for a couple. EIP stand for Economic Impact Payment.
The credit;was put on the tax return to enable people who didn’t get a first and second Economic Impact Payment, known as a stimulus. The credit also helps those who got less than the full amount owed to them;to now claim what they were owed.
Early Refund Advance Loan*& The Holiday Shopping Season
For qualifying customers, there are loans available based on their estimated federal income tax refund. Those loans can make a huge difference if you need money for holiday shopping and other expenses in mid-December. You may consider applying for an;Early Refund Advance, a no fee, 0% APR loan from MetaBank®, N.A. available to qualifying clients who prepare their taxes with Jackson Hewitt. For 2020 tax filers, Early Refund Advance loan amounts are between $200-$700.
No W-2, no problem. Just present your paystub or other acceptable income verification to apply for Early Refund Advance*. In January, provide your W-2 or other tax documents to complete filing your taxes and apply for additional Refund Advance loan amounts. See if you prequalify online before meeting with a Tax Pro. Loan available within 24 hours if disbursed on a prepaid card or in 1-5 business days with direct deposit. Terms and conditions apply.
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When Are The Remaining Child Tax Credit Paydays
The following payment goes out on Oct. 15 by direct deposit and through the mail. Remember, you’ll get half of the money in monthly payments this year, and the rest in 2022 when you file your taxes, unless you tell the IRS you want to unenroll from the advance payments to get them as part of your credit next year.
So in other words, your single largest payment arrives next year — up to $1,800 per child. Until then, you get a total of six smaller payments this year to start using right away. The idea is to bring you money sooner, which is why the checks are “advance payments,” to meet expenses like rent, food and day care.
Get Tax Credits Youre Entitled To
The delay shouldnt make much difference for some filers whose refunds are delayed every year, Holtzblatt says. Taxpayers who are eligible for the Earned Income Tax Credit and the Additional Child Tax Credit traditionally face a refund delay when filing early. Under the PATH Act from 2015, the IRS cannot issue refunds on returns claiming these credits until Feb. 15 in order to prevent identity fraud and fraudulent claims.
Even with the delayed start of tax season, the IRS says these claimants should receive refunds in early March, the same timeline as they would in a traditional filing season.
Yes, people who need the money wont be receiving it until perhaps late February or early March, Holtzblatt says. But for those people who probably need it the most, their income puts them in the range of the EITC in many cases, and their payments will get to them at about the same time as it normally would.
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How Long Does It Take To Receive My Tax Refund
Approximately 90% of taxpayers will receive their refunds in less than 21 days from the day their tax return was accepted by the IRS. Most people receive their refund in an average of 10-14 days.
You bank will usually make your payment available within 1-3 days of receiving the payment from the IRS. Checks may take longer to clear your bank.
Tales Of Unhappy Returns
James ORilley, CPA and tax director for Doeren Mayhew in Troy, said many clients who were anticipating federal income tax refunds faced delays in early July.;
Reasons for these delays, he said, include potential identity theft issues where someone else filed a return using their ID information; issues reconciling claims for the Recovery Rebate Credit with the economic stimulus payments that were sent out; and the IRS making corrections automatically and issuing extra refunds to those early filers who reported all unemployment compensation as taxable income before a March 11 change in the;rules excluded some benefits from;taxable income for many taxpayers.;
“They do pay interest,” O’Rilley said.
But he noted that’s not comforting to many who count on a tax refund to pay bills now.;
The IRS processed about 141 million individual income tax returns through June 11, based on IRS filing season statistics. But the IRS received nearly 152.5 million returns during that time, indicating that roughly 11.5 million individual returns remained in the pipeline as of mid-June. The average refund was $2,775.;
People want their money.;
“I probably get a call a day on this matter,” said;George W. Smith, a CPA and partner for Andrews Hooper Pavlik;in Southfield.
More:IRS launches new tool for Child Tax Credit for those who don’t normally file returns
The same keep-on-waiting story, Smith said, applies to tax refunds all across the board, big and small, easy and complex.;
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I Never File Taxes Can I Still Get Child Tax Credit Checks
Payments will be automatic for those who filed their 2020 tax returns . Parents who didn’t file taxes should use the new IRS tool, called the “Non-filer Sign-up tool,” to get their money, even if you’re not usually required to file. This will let the IRS know your income level and how many dependents are in your household who count toward the child tax credit benefits. You could also file a tax return to get the full monthly child tax credit payment you’re owed.
Parents who get too much child tax credit money this year may have to repay the IRS.;
When Are 2021 Tax Extensions Due
You have right up until tax day to file for an extension. For individuals, that means you can still file for a tax extension right on April 15. The same goes for businesses: S corps and partnerships can still get an extension on March 15, and the last day for C corps to file for an extension is April 15.
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Tax Return Filing Dates In 2022
Below are the estimated dates for key tax filing activities and deadlines. These will be updated as the IRS provides more information and you can subscribe to get notified of the latest updates.
Stay In the Know:or follow us on , ;and
An important point to note is that while you can file your taxes anytime after;the beginning of the year, the IRS will not process any returns until IRS e-File goes live. This includes returns filed via the main;tax software providers or directly via the IRS website for lower income filers. The IRS also reiterated that filing your taxes electronically is the most accurate way to file a tax return and the fastest way to get a refund. It is expected that more than over 80% of tax returns will be e-filed in the latest tax year.
Once your return is accepted the IRS processes your refund based on the;IRS E-file Refund Cycle Chart. Exact refund dates are based on IRS processing times and can be found in IRS Publication 2043 and IRS Topic 152 for both e-filed and mailed returns.;After filing and assuming your tax return is on order;you should receive your federal;refund;between 8 and 21 days. If you did not select the electronic deposit option, getting a;paper check;mailed to you adds about a week. As a general rule, you can expect your;state tax refund within 30 days;of the electronic filing date or the postmark date.
The Fast Way To Get Your Tax Refund
There are a number of ways to get money early. Filing as early as possible will give you a better chance of being in the first round of returns processed by the IRS. Electronic or e-filing gets your return to the IRS quicker than mailing a paper return. The sooner they receive your return, the sooner they can begin processing. Choosing to have your refund directly deposited into your bank account instead of receiving a check in the mail is also faster.
Another way to get your refund early is to choose to load it onto an American Express Serve® Card. Your refund will be available up to two days faster* than standard direct deposit. Those two days can mean the difference between getting your refund on a Friday or waiting until Tuesday of the following week. It makes a big difference for most of our hard-working clients.
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How To Track Payments Or Update Your Information With The Irs
While we don’t yet have a clear idea of what is causing the delays with the September payments, the good news is that you don’t have to wait until the IRS updates us to find out more about your check. There are tools that will allow you to track where your payments are and check whether they have been issued yet.
If you want to track your payment, you can use the IRS child tax credit update portal to get information about where your September payment is or find out whether the latest payment has been issued to you yet. You can also use this portal to make minor tweaks to your information.
You will soon be able to use this portal to update any changes in your filing status, including the number of dependents in your home. This will allow new parents with a baby born in 2021 to take advantage of the tax credit payments they now qualify for. It will also let parents take advantage of any increased payments they qualify for via a new dependent.
How Should You Contact The Irs For Help
The IRS received;167 million calls this tax season, which is four times the number of calls in 2019. And based on the recent report, only 7 percent of calls reached a telephone agent for help. While you could try calling the IRS to check your status, the agency’s;live phone assistance;is extremely limited right now because the IRS says it’s working hard to get through the backlog. You shouldn’t file a second tax return or contact the IRS about the status of your return.
The IRS is directing people to the;Let Us Help You page on its website for more information. It also advises taxpayers to get in-person help at Taxpayer Assistance Centers. You can;contact your local IRS office;or call to make an appointment: 844-545-5640. You can also contact the;Taxpayer Advocate Service if you’re eligible for assistance by calling them: 877-777-4778.;
Though the chances of getting live assistance are slim, the IRS says you should only call the agency directly if it’s been 21 days or more since you filed your taxes online, or if the;Where’s My Refund;tool tells you to contact the IRS. You can call: 800-829-1040 or 800-829-8374 during regular business hours.;
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How Long Will My Tax Refund Take
The IRS sends over 9 out of 10 refunds to taxpayers in less than three weeks.
Unfortunately, a 21-day delivery of your tax refund isnt guaranteed. There are a number of factors including the choices you make when you file that could impact how long it takes for you to receive your tax refund.
You get to choose how you want to receive any refund the IRS owes you. Here are your options:
- Direct deposit into your bank account .
- Paper check sent through the mail.
- Debit card holding the value of the refund.
- Purchase up to $5,000 in U.S. Savings Bonds.
- Split your refund among up to three financial accounts in your name, including a traditional IRA, Roth IRA, or SEP-IRA
The delivery option you choose for your tax refund will affect how quickly you receive your funds. According to the IRS, the fastest way to receive your refund is to combine the direct deposit method with an electronically filed tax return.
Haven’t Gotten Your September Child Tax Credit Payment You’re Not Alone Irs Says
The IRS has been sending out the monthly child tax credit payments for the last several months, and the process has, for the most part, been pretty smooth. Each month, the federal agency sends out millions of child tax credit payments, and while there have been glitches and a handful of other issues, they’re minor compared to the problems that arose while issuing the stimulus payments earlier this year.
In total, the IRS is issuing about $15 billion in child tax credit money each month to households who qualify, and it’s had a significant impact on bank account balances across the nation. This money, which is technically an advance on the child tax credit parents and guardians claim on their annual tax returns, has already helped millions of lower- to moderate-income families make ends meet. And the checks are scheduled to continue through December, which will further help cash-strapped families pay essential bills and fill pantries as the nation recovers from the weight of the pandemic.
But while the process of issuing the monthly payments has been relatively smooth overall, a handful of issues have popped up each month and this month was no exception. The last child tax credit check was issued on Sept. 15, and while most households have received their payments, not all households have been so lucky. Some families who received their July and August checks are now reporting that their September checks are missing. Here’s what we know about the delayed payments.
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What You Need To Know For The 2021 Tax
Ottawa, Ontario
Canada Revenue Agency
This year, the COVID-19 pandemic may have affected your tax-filing situation and may also affect the way you usually file your income tax and benefit return. Over 30;million returns were filed last season, and the Canada Revenue Agency wants to help you get ready to file your return this year.
Heres what you need to know for this tax-filing season, including filing options, COVID-19 benefits, and whats new.
What To Do With Your Tax Cut
If you’re expecting a tax cut this year, here are a few ways you could put it to good use:
- Make an extra repayment on your home loan.
- Top up your mortgage offset account, so you pay less interest against your home loan.
- Buy some shares or invest in an index fund.
- Top up your superannuation by making an extra one-off contribution .
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What To Do If You’re Still Waiting On Your Refund
It’s best to locate your tax transcript or try to track your refund using the Where’s My Refund tool . The IRS says that you can expect a delay if you mailed a paper tax return or had to respond to the IRS about your electronically filed tax return. The IRS makes it clear not to file a second return: You should call if it’s been more than three weeks since your last update.
Keep in mind that the IRS has limited live assistance because the agency is juggling the tax return backlog, delayed stimulus checks and child tax credit payments. Even though the chances of speaking with someone are slim, you can still call. Here’s the best number to call: 1-800-829-1040.;
Tax Slips To Watch Out For:
There are a number of tax slips you may have to watch for this year. In fact, even the plain-vanilla T4 from your employer looks a little different this year, says Lisa Gittens, a tax expert at H&R Block Canada. There will be extra boxes at the bottom that will help the Canada Revenue Agency check whether you were working while also collecting COVID-19 benefits like the Canada Emergency Response Benefit or the Canada Recovery Benefit , according to Gittens.
If you did receive any of those income supports, the government will send you various kinds of tax slips with information to fill out your return. For any payments you got through the CRA, expect a T4A, says Gittens. For money sent from Service Canada including Employment Insurance benefits and CERB payments not processed by CRA youll see a T4E.
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