Time To Make Contributions To Iras And Health Savings Accounts Extended To May 17
In extending the deadline to file Form 1040 series returns to May 17, the IRS is automatically postponing to the same date the time for individuals to make 2020 contributions to their individual retirement arrangements , health savings accounts , Archer Medical Savings Accounts , and Coverdell education savings accounts . This postponement also automatically postpones to May 17, 2021, the time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. Notice 2021-21 also postpones the due date for Form 5498 series returns related to these accounts to June 30, 2021.
Irs Extends Tax Deadlines For Some Hurricane Ida Victims In Mississippi
The Internal Revenue Service is giving victims of Hurricane Ida in some parts of Mississippi until Jan. 3, 2022 to file their individual and business tax returns, although the Nov. 1, 2021 deadline still applies to the rest of the state.
The deadline extension comes after a disaster declaration by the Federal Emergency Management Agency last week. The IRS has previously provided tax relief to the entire state of Mississippi, postponing various tax-filing and tax-payment deadlines until Nov. 1, 2021.
The expanded relief postponing the tax deadline until next January for now only applies to Amite, Claiborne, Copiah, Covington, Franklin, Georgia, Hancock, Harrison, Jackson, Jefferson, Jefferson Davis, Lawrence, Lincoln, Pearl River, Pike, Simpson, Walthall, Wayne and Wilkinson counties. But the IRS said any jurisdiction thats added to the Oct. 22 FEMA declaration will automatically qualify for the expanded IRS relief.
For now, the deadline remains Nov. 1 for affected taxpayers in other parts of Mississippi. The current list of eligible localities is always available on the disaster relief page on IRS.gov.
On top of that, penalties on payroll and excise tax deposits due on or after Aug. 28, 2021 and before Sept. 13, will be abated as long as the deposits were made by Sept. 13, 2021.
The IRS disaster relief page provides further details on other returns, payments and tax-related actions qualifying for the extra time.
Does The New Deadline Apply To All Taxes
No. This applies to all individual tax filers, and it does not include trusts, estates, corporations and other noncorporate tax filers. Quarterly estimated taxes for individuals are still due April 15, 2021, too.
Theres a good chance the new deadline applies to your state taxes. As of April 2021, most states have either followed the IRS lead and delayed their tax deadlines until May 17, or have extended their deadline further. But each state is different. Here is an updated list of how each state has approached its 2021 tax deadlines in response to the coronavirus.
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How Do I File My Taxes Online
CNET has rounded up the best tax software, featuring vendors such as TurboTax, H& R Block and TaxSlayer. These companies can make the tax filing process much easier, from reporting your taxable or self-employed income to setting up direct deposit to going through your itemized deductions.
That noted, the IRS provides a list of free online tax prep software offered by many of those same providers. You can use this service if you meet certain criteria and have a relatively simple tax situation. Requirements include: You make less than $72,000 annually, you don’t itemize deductions and you don’t own a business. This will likely be helpful for people who do not typically have to file taxes but need to do so this year to claim missing stimulus money.
If you want to itemize deductions or have a more complex financial situation — you run a business, have investments or generate rental income — you’ll have to pay for a higher tier of service, which can run a couple hundred dollars. Still, for most people, even the most deluxe online package is far less expensive than hiring an authorized tax pro. And if you prefer to keep it old-school, the IRS’ online tax forms handle some but not all of the calculations for you and still allow you to e-file or print and mail.
A number of online tax software providers will help you file for free.
What About Child Tax Credit Payments
As a result of the American Rescue Plan, many parents have been receiving monthly checks as part of the expanded child tax credit program since July. If you havent filed a 2020 tax return yet, the IRS is using your 2019 return to calculate how much to send you each month .
The agency is encouraging any families that had a baby in 2020 to file their 2020 taxes as soon as possible. If your return is processed by Nov. 1, you may still receive the November and December payments for the baby born last year. And if your return is processed by Nov. 29, the IRS says you may be eligible for the December payment.
Coincidentally, Friday is also the day the October child tax credit payments are being sent out. If you didnt opt out of the payments, you should receive yours on Friday through direct deposit, and a few days later if youre waiting to receive a paper check in the mail. Heres the full list of the payment dates. Anyone who does not receive their full child tax credit payments this year will get what theyre owed after filing taxes next year, for the 2021 tax year.
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When Will I Get My Tax Refund
How quickly you can expect to see your refund depends on how you file, when you file and which payment method you choose. Filing online and filing earlier usually results in faster processing. In a normal year, the typical turnaround ranges from one to three weeks, but given the extreme abnormality of the past year, all bets are off.
To speed up refunds during the pandemic, the IRS is asking taxpayers to file electronically with direct deposit as soon as possible, so the IRS can deposit your refund right into your bank account. Tax software companies, including IRS Free File partners, began transmitting those returns to the IRS back on Feb. 12.
If you choose an e-Collect direct deposit, where your tax preparer’s fee is deducted from your refund, it may add a few more days to your wait. A paper check may take several weeks to arrive.
Here’s how to estimate your tax refund.
Get More With These Free Tax Calculators And Money
See if you qualify for a third stimulus check and how much you can expect
Know what dependents credits and deductions
Know what tax documents you’ll need upfront
Learn what education credits and deductions you qualify for and claim them on your tax returnGet started
The above article is intended to provide generalized financial information designed to educate a broad segment of the public it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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Whats The Deadline To Pay Your Taxes
If youâre sending your return in via snail mail, the IRS considers your return âon timeâ if itâs addressed correctly, has enough postage, and is in the mail before the end of business on your filing deadline.
Otherwise, you can e-file your return before midnight on your tax filing deadline day.
If youâre self-employed, your business probably pays taxes in four sums throughout the year, rather than on one day. These are called estimated tax payments. The due date for these 2021 payments are April 15, June 15, September 15, and January 15 .
If youâd rather have someone else handle your bookkeeping and federal income tax filing, check out Bench.
Weâll set you up with a dedicated team of bookkeepers and a tax team to provide year round tax advice and file your taxes for you. With these teams, youâll have a tax planning session to ensure you are more prepared for next year. Weâll take both headachesâbookkeeping and taxesâoff your hands, for good.
What Is Tax Day
In the United States, tax season generally runs between January 1 and April 15 each year for filing and paying taxes for the previous year. Tax season for 2021 taxes begins Jan. 1, 2022, and ends April 15, 2022.
Tax Day refers to the final deadline date when individual federal tax returns and tax payments are due. Most states that levy income taxes set the same deadline for their residents to file their state income taxes.
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Are Inheritance Taxes Due On The Date Of Death Or When The Inheritance Is Received
While some states do impose an inheritance tax, the federal government only imposes an estate tax. Estate taxes are imposed on the estate itself rather than on the individuals inheriting assets from the estate. Estate taxes aren’t necessarily imposed on the date of death, but they will have been assessed by the time an heir officially receives assets.
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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Schedule Federal Tax Payments Electronically
Taxpayers can file now and schedule their federal tax payments up to the October 15 due date. They can pay online, by phone or with their mobile device and the IRS2Go app. When paying federal taxes electronically taxpayers should remember:
- Electronic payment options are the optimal way to make a tax payment.
- They can pay when they file electronically using tax software online. If using a tax preparer, taxpayers should ask the preparer to make the tax payment through an electronic funds withdrawal from a bank account.
- IRS Direct Pay allows taxpayers to pay online directly from a checking or savings account for free, and to schedule payments up to 365 days in advance.
- Choices to pay with a credit card, debit card or digital wallet option are available through a payment processor. The payment processor, not the IRS, charges a fee for this service.
- The IRS2Go app provides the mobile-friendly payment options, including Direct Pay and debit or credit card payments on mobile devices.
- The Electronic Federal Tax Payment System is convenient, safe and easy. Choose to pay online or by phone by using the EFTPS Voice Response System.
What Changes For 2020 Taxes Do I Need To Know About
For tax year 2020, the IRS has changed individual income tax brackets, adjusting them for inflation. There are also new temporary regulations created by last year’s CARES Act around charitable deductions, IRA and 401 plans and student loans that may affect how you prepare your taxes. The major changes include:
CNET has rounded up all of the changes to the tax rules this year, and there are even more details on the IRS website. And there are plenty of companies that would love to help you prepare your taxes — for a fee, of course. CNET Money has prepared a wealth of tax resources to help you, including a series of articles covering the 2020 tax season from every angle.
Tax filings needed to be postmarked by May 17.
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Unclaimed Refunds Deadline Extended To May 17
For tax year 2017 Federal income tax returns, the normal April 15 deadline to claim a refund has also been extended to May 17, 2021. The law provides a three-year window of opportunity to claim a refund. If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the May 17, 2021, date.
Additionally, foreign trusts and estates with federal income tax filing or payment obligations, who file Form 1040-NR, now have until May 17, 2021.
Who Files On Tax Day
Just about everyone who earns income files a return on Tax Day.
That includes everyone who has an employer who deducts taxes from their paychecks. It also includes self-employed people and small business owners who must file quarterly to pay estimated taxes and then file annual returns to square up their accounts.
Retirees file income taxes on Tax Day to account for the income they received from Social Security and any pensions, investment income, and retirement account withdrawals.
In short, anyone with income above $12,400 for individuals under age 65 or $14,050 for those 65 and older in 2021 has to file.
Tax Day is the due date for federal individual income tax returns and tax payments. For most taxpayersin most yearsfederal income tax returns must be submitted to the Internal Revenue Service by April 15. This date applies to individuals who file taxes based on a calendar year. If you use a fiscal year, then you must file your taxes by the 15th day of the fourth month after the last day of your fiscal year. For example, if your fiscal tax year ends on June 30, then your federal tax return is due by October 15.
Deadlines for state taxes may be different from federal income tax deadlines. If you are required to file a state income tax return, check with your state tax agency to confirm the due dates.
To request an extension:
Your extension request must be filed on or before your original tax payment due date.
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How Do I Claim Missing Stimulus Money On My Taxes
If you were eligible for all or some of the first stimulus check of up to $1,200 per person or the second stimulus check of up to $600 per person, but that money never arrived , you can claim your missing money on your 2020 tax return as a Recovery Rebate Credit. This credit would either increase the size of your total tax refund or lower the amount of taxes you owe.
You’ll file for the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR to claim a catch-up stimulus payment. The IRS will provide a Recovery Rebate Credit Worksheet to help you work out if you’re missing a payment and for how much. We’ve got full instructions on how to file for a Recovery Rebate Credit on your taxes here.
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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File For Free Through Irs Free File
The IRS offers free tax filing services for taxpayers who qualify . If you still need to file your 2020 tax return, the Free File program is only available until Oct. 15. Free File is a partnership with tax preparation software providers, including Tax Slayer, Tax Act, and FileYourTaxes.com.
If you earn more than the income threshold, you may be eligible to use a different free option to file your taxes, the Free File Fillable Forms. This option isnt for the faint-hearted, though, as youll need to know how to prepare your own tax return.
What This Means For You
We understand that each taxpayers situation is unique, and in order to help you during these difficult days, our recommendation is to continue working toward the tax deadline as if it was still April 15. This will enable us to more quickly evaluate your tax position in order to determine what is most beneficial for you. For those who will receive a refund, we can file your return so you receive the payment as soon as possible. For those who will owe tax, you can proactively determine the amount and then plan to delay the payment until closer to the deadline.
Undoubtedly, circumstances may make it difficult to proceed as you once intended, but we remain committed to working with you even more so during these difficult times. If you have any questions, please contact your KSM advisor.
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