What Happens If I Miss The Tax Deadline
If you fail to file your income taxes by midnight on May 17, what happens next depends on your situation. If you are owed a refund, there is no penalty for filing late, though this may be different for your state taxes. But if you owe the IRS, penalties and interest will start to accrue on any remaining unpaid tax due in May. There’s also a $330 failure-to-file penalty under the;Taxpayer First Act of 2019.;
It’s best to file on time, even if you owe money that you can’t pay right now — in most cases, late filing penalties are higher than late tax payment penalties. If you can’t file on time, you can file for an extension, which automatically pushes back the tax filing deadline to Oct. 15 and protects you from penalties. In most states, taxpayers who are granted a federal extension to file automatically receive an equivalent extension to file their state income tax return.;
An important note: If you are owed a refund or if you file for an extension through Oct. 15, you still have to pay your taxes by May 17. If you owe money, you’re required to estimate the amount due and pay it with your;Form 4868. If you do that, you’ll automatically be granted an extension.;
Another caveat: If you’re serving in the military — in a combat zone or a contingency operation in support of the armed forces — you may be granted;additional time to file, according to the IRS.;
Tax Day For Individuals Extended To May 1: Treasury Irs Extend Filing And Payment Deadline
IR-2021-59, March 17, 2021
WASHINGTON The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.
“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”
Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
Dealing With Economic Uncertainty
- The coronavirus pandemic has pushed millions into unemployment and the economy into a recession. Financial advisors can help navigate these troubled times. To simplify the search, use;SmartAssets free tool. It will match you with financial advisors in your area in just 5 minutes. If youre ready to find an advisor,;get started now.
- There are certain personal finance fundamentals that you need to get in order, ideally before a recession hits. Heres how to prepare for a recession.
- Extending the tax deadline isnt the only thing the government is doing to take the economic pressure off Americans. Learn what relief is available to you.
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Turbotax Has You Covered
Many taxpayers scramble to figure out when are taxes due every year, but you can be confident that TurboTax is ready to help you file whenever you’re ready. TurboTax asks simple questions about your tax situation and helps you fill out the right forms and find every deduction you qualify for so you can get every dollar you deserve.
If you have additional questions, you can connect live to a TurboTax Live tax expert for unlimited tax advice or even have a tax expert or CPA file for you from start to finish.
Remember, with TurboTax, we’ll ask you simple questions about your life and help you fill out all the right tax forms. Whether you have a simple or complex tax situation, we’ve got you covered. Feel confident doing your own taxes.
Tax Day : When’s The Last Day To File Taxes
The due date for filing your 2019 federal income tax return is now July 15, 2020. It was pushed back from the normal April 15 deadline to help taxpayers, and tax preparers, who are struggling with the coronavirus crisis.
If you’re expecting a refund, e-file your 2019 tax return and opt to have your refund deposited directly into your bank account to get it sooner. The IRS can process electronic returns and refunds much faster than it can handle paper returns and checks.
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C Corporation Tax Returns Due
Today is the deadline to file C corporation tax returns . C corporations in Texas, Oklahoma, and Louisiana have until June 15 to submit their tax returns.
April 15 is also the deadline to file for an extension to file your corporate tax return.
Further reading:What is Form 7004 and How to Fill it Out
How To File Electronically
You might want to e-file your late return if you haven’t missed that deadline as well. Many taxpayers can e-file at IRS Free File if their AGIs were under $72,000 in 2020. Some other rules can apply as well, imposed by the individual software providers that participate in the Free File Alliance.
The IRS will accept e-filed returns until November. It will announce the exact November cutoff date sometime in October 2021.
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Understanding The Last Trading Day
The last trading day is the day before a derivative expires. On the expiry date, the derivative is no longer tradable and the settlement process begins. Assume the expiration date on an options contract is Friday, March 22. The last trading is Thursday, March 21.
The last trading day is the final day that a futures contract can be traded or closed out. Any contracts outstanding at the end of the last day trading day must be settled by delivery of the underlying physical asset, exchange of;financial instruments, or by agreeing to a monetary settlement. The specific agreements covering these;potential outcomes are contained in the futures contract specifications and vary between securities.
In general, most futures contracts result in an exchange of financial instruments or a cash settlement rather than a delivery of the physical commodity since most market participants are hedging or speculating.
The last trading day for an option is the day before the expiration date. Holders of options on the expiry date will be required to deliver or receive the underlying, if applicable. Options that are worthless will expire and don’t need to be closed out.
If an option buyer is holding a position that is in the money , they will receive shares and be required to put the capital and/or margin to purchase/short those shares. The option seller will need to provide those shares.
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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Student Loan Forgiveness: How Much How To Get It And Whats Next For Student Loans
Beyond the unique benefits this year for filing early, there are a few evergreen advantages.
Filing early helps prevent identity theft. Filing later gives a prospective thief more time to try to claim a refund in your name. Both the IRS and the FTC encourage taxpayers to file early to cut off this avenue for criminals.
Filing early gives you more time to plan. Preparing your taxes early can give you time to make sure you have pulled together all of the relevant information for your tax return. By not procrastinating to the deadline, you have more time to gather important information, make sure no eligible deduction or write off is missed and consult with your tax preparer. This is much harder to do when you wait to the last minute.
Filing early gives you quicker access to your refund or more time to pay if you owe money. Probably the main reason people generally like filing early is to get a refund sooner. This can mean being able to use the refund money earlier to invest or pay down debt. On the flip side, preparing your return early also gives you more time to gather the money you may need to pay off any money you might owe.
Just because you have more time to file your taxes doesnt mean you should necessarily take advantage of the later deadline. There are good reasons not to delay. As they say, the early bird gets the wormor at least a quicker refund.
Federal Tax Deadline Extensions
The federal tax filing deadline for 2020 taxes has been automatically extended to May 17, 2021. Due to severe winter storms, the IRS has also extended the tax deadline for residents of Texas, Oklahoma and Louisiana to June 15, 2021.
This extension also applies to 2020 tax payments. Individual taxpayers may defer tax payments until the new filing deadline, interest and penalty free.;The new federal tax filing deadline is automatic, so you don’t need to file for an extension unless you need more time to file after May 17, 2021.
If you file for an extension, you’ll have until October 15, 2021 to file your taxes. But, you’ll still need to pay any taxes you owe by May 17.
The new federal tax filing deadline doesn’t apply to; 2021 estimated tax payments. First and second quarter estimated tax payment deadlines are still April 15, 2021;and June 15, 2021.
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When Is My 2020 Tax Return Due In 2021
Though last year the IRS extended the deadline from April 15 to July 15, this year the agency has granted us only one extra month:;Your 2020 tax return is due on May 17, 2021. If you request an extension , your last day to file will be Oct. 15, 2021.;
There’s one considerable caveat, however: The IRS has said the May 17 deadline does not apply to those who make estimated payments, which are still due on April 15 — which is coming up this Thursday. Though legislators introduced;a new bill that would delay the Q1 estimated tax due date until May 17, it’s not clear whether there’s enough time or political will to get it passed.
I Have Questions About My Taxes Can I Call The Irs
There are;numerous ways to contact the IRS. The agency no longer offers live online chatting, but you can still submit questions through its online form. If you prefer to talk to a person, the IRS maintains a number of dedicated phone lines that are open Monday through Friday, from 7 a.m. to 7 p.m. . Individuals can call 800-829-1040 and businesses can call 800-829-4933. Note, however, that the IRS says “live phone assistance is extremely limited at this time.”
And there’s always the;Interactive Tax Assistant, an automated online tool that provides answers to a number of tax law questions. It can determine if a type of income is taxable, if you’re eligible to claim certain credits and whether you can deduct expenses on your tax return. It also provides answers for general questions, such as determining your filing status, whether you can claim dependents or if you even have to file a tax return.
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More Tax Deadlines In 2021
- This is the date by which you should have received a W-2 from employers you worked for during the tax year. If not, contact their HR/Payroll department to resend tax documents
- Last day for corporations to file their 2020 taxes using Forms 1120, 1120A, and 1120S. They can also file an extension using Form 7004.
- May 17, 2021 Last day to file 2020 taxes as an individual. Extension Form 4868 should be filed if you cant complete your return on this date. Payment needs to be made, though.
- May 15, 2021 Last day for non-profits with a calendar year to file their 2020 Form 990.
- Last day for corporations to file extended returns.
- Last day for individuals to file extended returns.
How To File Taxes The Day Theyre Due
Some post offices actually stay open later on Tax Day. But beware, you should check what the hours for your local post office are before assuming that they have extended hours.; Post offices are seeing less and less foot-traffic on Tax Day thanks to online tax software. You can use the following online software to file your taxes on the last day.
If youre considered low-income , you can file your taxes online completely free.
So what happens if you miss the deadline?
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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.
What If I Don’t Normally Have To File Taxes But Want To Claim A Missing Stimulus Check
If you typically aren’t required to file taxes because you’re on SSI or SSDI, you’re retired, or you don’t meet the IRS’ income threshold, but you need to claim missing stimulus money, you will have to file a 2020 tax return. The good news is, you’ll likely be eligible to use the IRS’ Free File program to do so. We’ve got a guide for how nonfilers can get started filing their 2020 tax return to claim stimulus money here.
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How Do I Send The Irs My Tax Payment
If you’re mailing your tax payment, you can elect to have the funds withdrawn directly from your bank account or include a personal check or money order. If you choose the latter, make it payable to “US Treasury” and include your name, address, phone number, Social Security number or Individual Tax ID Number. Under no circumstances should you ever mail cash to the IRS.
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Winter Storm Disaster Relief For Louisiana Oklahoma And Texas
Earlier this year, following the disaster declarations issued by the Federal Emergency Management Agency , the IRS announced relief for victims of the February winter storms in Texas, Oklahoma and Louisiana. These states have until June 15, 2021, to file various individual and business tax returns and make tax payments. This extension to May 17 does not affect the June deadline.
For more information about this disaster relief, visit the disaster relief page on IRS.gov.
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