Should I Wait Until Closer To The Deadline To File My Tax Return
No! The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days. Most tax filers receive a tax refund each year, and in 2021 so far, the average amount has been $2,990.
If you are eligible for the first and second Economic Impact Payments , or stimulus, and you did not receive the full amount or any amount already, then filing sooner would also allow you to claim the Recovery Rebate Credit on your 2020 tax return and receive that money via your tax refund.
Book an appointment with a Jackson Hewitt Tax Pro to file your tax return so you can get every dollar you deserve as soon as possible.
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Mondays Tax Day But Texans Get Until June Heres What You Need To Know About Filing
WASHINGTON, DC — Okay, last call. Monday, May 17, is the official deadline for individuals to file their 2020 federal tax return, and in most instances their state tax return, too. It’s a month later than usual, thanks to the pandemic.
While people in New Mexico are facing the federal income tax deadline on Monday, residents of Texas have until June 15 to file their income tax because of February’s severe winter storms.
But the filing deadline’s not the only thing that’s changed. Many of the upheavals over the past year have caused other changes to your taxes. Due to the Covid crisis, there are plenty of new and revised provisions and important dates you will need to know about before filing your return this year.
Here are some of the most important ones.
What If I Dont Live In Texas Oklahoma Or Louisiana But My Business Is Located There
Individuals who own businesses in Texas, Oklahoma, or Louisiana — but who are not residents themselves — may also receive a filing extension. They will need to contact the IRS at 866-562-5227.
This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
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Items That Qualify For Tax
You can see Texas official rules for tax-free weekend and the official list of what does and does not qualify on the state website here. Below is a general rundown to give you an idea of what you can buy tax-free, but consult the official state website for official details.
Any qualifying item that costs less than $100 is tax-free this weekend in Texas. This includes clothing, footwear, school supplies, and backpacks
How Are Individuals Affected By The Tax Deadline Extension
The tax extension deadline generally applies to all calendar year tax-paying entities, including individuals, self-employed persons, and trusts and estates. The Treasury and IRS announced the deferment of filing your federal tax return as well as specific federal tax payments. This delay in payment comes interest- and penalty-free, for 90 days, until July 15, regardless of the amount owed.
Furthermore, anyone who needs to make quarterly estimated tax payments also has until July 15 to submit these payments. This means your 2020 tax year first and second quarter estimated tax payments, previously due on April 15 and June 15, are now both deferred until July 15.
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Are My Unemployment Benefits Taxable
Yes, but for households with modified adjusted gross income below $150,000 last year, the first $10,200 in unemployment benefits for each taxpayer in a household will be exempt from federal income tax, thanks to a provision in the latest Covid relief package signed into law by President Joe Biden.
Also, when figuring out whether you are eligible for the $10,200 exclusion, you do not have to count any income from your unemployment benefits as part of your calculations of modified AGI, according to Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting.
For anyone who filed their tax return before the latest Covid relief package went into effect in mid-March, the IRS said there is no need to file an amended return unless the exclusion would make you newly eligible for more tax credits and deductions that were not claimed on your original return. Otherwise, the agency said it will refigure your taxes by incorporating the $10,200 exclusion and either refund you any resulting overpayment or apply it to other taxes you owe.
Of course, if you live in a state with an income tax that also taxed unemployment compensation, you also should check your state revenue department’s web site to see if your state has decided to follow the IRS and exclude the first $10,200 from state income tax as well.
Whether or not you qualify for the $10,200 exclusion, note that most unemployment compensation is treated as taxable income, both by the IRS and by most states.
When Is The Next Virginia Tax Free Weekend
- School supplies that are $20 or less per item
- Clothing and footwear that are $100 or less per item
- Portable generators that are $1,000 or less per item
- Gas-powered chainsaws that are $350 or less per item
- Chainsaw accessories that are $60 or less per item
- Other specified hurricane preparedness items that are $60 or less each
- Energy Star and WaterSense-certified efficient products that are $2,500 or less per item
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These Colors Correspond With The Calendar Above:
S-Corporation and Partnership should submit all supporting documents
If your company operates on a calendar year, this date should serve as your companys deadline to allow your accountant time to prepare your taxes for the March 15 deadline.
C-Corporation and Individuals should submit their tax documents
If your company operates on a calendar year, now would be a good time to submit your documents to your accountant so they have enough time to prepare your return.
S-Corporation and Partnership income tax returns due
If your company operates on a calendar year, you need to either file your tax return or extension by this date.
C-Corporation and Individual income tax returns due
If your company operates on a calendar year. View Form 1120-W, Estimated Tax for Corporations. The Individual Tax Return Extension Form for Tax Year 2021 is also due on this day.
1st-quarter 2022 estimated tax payment due
If youre self-employed or have other income that requires you to pay quarterly estimated taxes, get your Form 1040-ES postmarked by this date.
Last day to make a 2021 IRA contributionIf you havent already funded your retirement account for 2021, do so by April 18, 2022. Thats the deadline for a contribution to a traditional IRA, deductible or not, and a Roth IRA. However, if you have a Keogh, SEP, or other eligible plan and you get a filing extension to October 15, 2022, you can wait until then to put 2021 money into those accounts.
Are My Stimulus Payments Taxable
No. The money is tax-free.
But some people who are eligible for the money didn’t receive the first two rounds of payments– primarily those whose 2019 income was higher than their 2020 income or people who did not file tax returns for 2019 or 2018. They will be able to receive the money owed them via their federal tax return so long as they claim the refundable Recovery Rebate Credit.
That credit will reduce your income tax liability dollar-for-dollar. And to the extent the credit exceeds your tax liability, you’ll get the remainder as a refund.
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Irs: Tax Return Filing Deadline For Texas Taxpayers Is June 15
AUSTIN, Texas – The IRS is reminding Texas taxpayers the deadline to file their 2020 federal income tax return is June 15, 2021.
The deadline was extended to June due to the February winter storms to give taxpayers more time to file their individual and business 2020 tax returns and make payments without penalties and interest, regardless of amount owed.
“Individual taxpayers who need additional time to file beyond the June 15, 2021 deadline can request an extension until Oct. 15,” said IRS spokesman Michael Devine. “The IRS cant process extension requests filed electronically after May 17, 2021 so they need to print and mail Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.”
LIVE: Navigating a pandemic tax season
This week was the beginning of the 2021 tax season. Val Majewski with American Benefits Exchange joined Good Day Austins Casey Claiborne LIVE via Zoom to talk about whats different after a pandemic yearlike stimulus checks and unemployment.
Businesses that need additional time to file income tax returns must file Form 7004.
The IRS is also reminding taxpayers that an extension gives them until Oct. 15 to file but does not grant an extension of time to pay taxes due.
Better Business Bureau talks about tax-related scams
Taxpayers who live and work abroad also have until June 15 to file their tax returns as part of the normally granted automatic two-month extension.
What Is The Last Day To File Taxes If You Live In Texas Oklahoma Or Louisiana
If you are a Texas, Oklahoma, or Louisiana resident, you have until June 15, 2021 to file your federal tax return. The federal filing deadline was extended for Texas, Oklahoma, and Louisiana to accommodate taxpayers who were affected by severe winter storms earlier this year.
Taxpayers who are not residents of any of these three states must file by or on the recently extended May 17, 2021 federal income tax deadline, or they will need to file an extension. The IRS made it clear that state tax deadline extensions will vary on a state-by-state basis. At the time of publication, the majority of the states that do require taxpayers to file state tax returns have followed suit in extending their deadlines from April 15 to May 17, 2021. But taxpayers should go to their respective states official government website to check if their state is among that group.
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When Can I Expect My Refund
Typically refunds are issued within 21 calendardays of the IRS receiving your return. The fastest way for you to receive yours is to file electronically and choose direct deposit, the IRS notes.
But this year, there is an unusually large backlog of returns to be processed both from 2019 and 2020. As of April 22, there were more than 29 million returns being held for manual processing, according to National Taxpayer Advocate Erin Collins. So any refunds from that batch are likely to be delayed.
The IRS also has said it is taking longer to process mailed documents, such as paper tax returns, and correspondence related to one’s tax return — for instance, if the IRS requested more information or found an error in a filer’s calculations.
IRS Commissioner Rettig told lawmakers on April 13 that any returns going through the agency’s error resolution service are taking 10 to 14 daysto process, up from the typical three to five days in a normal filing season.
To find out if your refund is being processed, you can check the IRS tool “Where’s My Refund?” either within 24 hours of when the agency indicates it has received your e-filed return or four weeks after you mailed in your paper return. But note the tool will not tell you if the IRS needs more information from you or when it plans to release your refund, Collins noted in a blog post.
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.
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Texas Sales Tax Holiday Is This Weekend These Are The Lists You Need To See To Make Sure Youre Buying Qualifying Products
Amanda Cochran, Digital Special Projects Manager
HOUSTON Texas sales tax holiday is here. During the three-day event, shoppers have a chance to save money on school supplies and more.
Shoppers will be able to save money on footwear, school supplies and backpacks from Aug. 6-8. During this period state law exempts sales tax on items priced below $100, saving shoppers about $8 on every $100 they spend.
Some of the items you might not expect on these list are diapers, work uniforms, leather items and workout clothes. Take a deeper dive in the links below to and see if things youve been waiting to buy or plan to buy in the coming year are listed for this tax-free weekend.
This is a good time to stock up to save, but to buy smart — only buy things you know youll use.
You can print out the lists below to help plan your shopping. Just a note: T means taxable. E means exempt. The E items are those you wont have to pay tax on this weekend.
What Happens If I Miss The Due Date
If you can not complete your income tax return before the 2022 filing deadline, you are generally expected to mail in an extension of time to file request form AND make an estimated payment. You can then send in your income tax return up to 6 months late with interest and possibly penalty charges forthcoming.
Remember that you must notify and pay both the IRS and your state Department of Revenue office. The Internal Revenue Service will not notify the state department of revenue office for you.
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Income Tax Deadlines And Due Dates
In the table below you will find the income tax return due dates by state for the 2021 tax year. We have included the Regular Due Date alongside the 2022 Due Date for each state in the list as a point of reference. Each calendar year the state income tax due date may differ from the Regular Due Date, because of a state recognized holiday, or the due date falls on a Saturday or Sunday, for example.
Most state income tax returns require income, adjustments, and credit amounts calculated on your Form 1040. For this reason, it’s important that you prepare your federal income tax forms in advance of trying to prepare your state income tax forms.
Sellers What You Need To Know
If you sell items that do not qualify for the sales tax holiday exemption, you can advertise that you are paying the sales tax for your customers. The following conditions apply:
- You may not indicate or imply that the sale is exempt or excluded from tax and
- Any purchaser’s receipt or statement you provide to your customer must separately state the amount of sales tax and indicate the tax will be paid by the seller.
If you sold qualifying items tax free during the sales tax holiday, only include these tax-free sales in Total Texas Sales of your sales tax return. Do not include your tax-free sales in Taxable Sales .
Be aware, if you sold qualifying exempt items and collected sales tax, then you must remit it to our office.
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Can I File An Extension
As in past years, you can request an extension if you need more time to prepare and file your 2021 return. Before the April 15, 2022, deadline, you must fill out and submit Form 4868, the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. At the time you file Form 4868, you must also pay the estimated income tax you owe to avoid penalties and interest, the IRS says.
Generally, taxpayers are granted an automatic six-month extension to file, or two months if theyre out of the country, in which case the extension also applies to payment of taxes owed.
To qualify for an extension, you must file Form 4868 before April 15, 2022. You will not be notified unless your request is denied.
Why Do States Have Sales Tax Holidays
Over a dozen states have various types of sales tax holidays throughout the year. Most of the time, these holidays are special promotions designed to promote desirable purchases of items such as energy-star rated products, emergency preparedness supplies, etc. Many states also hold sales tax holidays to correspond with the back-to-school shopping season for items like books, clothing, and school supplies.
In some cases, sales tax holidays may be implemented as a counter to customers increasingly moving to online retailers like Amazon.com. All sales tax holidays were first enacted within the last two decades, most within the last ten years.
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Tax Deadlines For Certain Texas Taxpayers Postponed
Taxpayers in Texas impacted by the recent winter storms will have until June 15, 2021, to file various federal individual and business tax returns and make tax payments.
The relief postpones various federal tax filing and payment deadlines that occurred starting on February 11. As a result, affected individuals and businesses will have until June 15, 2021, to file returns and pay taxes that were originally due during this period. This includes 2020 individual and business returns normally due on April 15, as well as various 2020 business returns due on March 15. Among other things, this also means that affected taxpayers will have until June 15 to make 2020 IRA contributions.
The June 15 deadline also applies to quarterly estimated income tax payments due on April 15 and the quarterly payroll and excise tax returns normally due on April 30. It also applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17.
Payroll tax deposits are not given an extension of time to pay, however, penalties on payroll and excise tax deposits due on or after February 11 and before February 26 will be abated as long as the deposits were made by February 26.
In addition, the Texas Comptrollers office has postponed the due date for 2021 state franchise tax reports from May 15 to June 15. This postponement is automatic and does not require taxpayers to file additional forms.