Will The 2021 Tax Deadline Get Extended Again
The IRS has been lenient on the tax deadline since the COVID-19 pandemic struck. For example, it moved the deadline to file returns for the 2019 tax year to July 15, 2020, instead of April 15.
For the 2020 tax year, it gave people until May 17, 2021, to file their returnsthat was more than a month later than the usual deadline. People in select states affected by storms got even more time to file their returns.
The IRS hasnt announced a plan to extend the tax deadline for the 2021 tax year. However, its worth noting that the COVID-19 pandemic, which caused the tax deadline extension for the past two years, has persisted. We’ll have to see if the IRS extends the tax deadline again.
Although the agency said that it wouldnt give people extra time to submit their tax returns in 2021 for the 2020 tax year, it extended the deadline anyway. Anything is possible before the next tax deadline comes.
Can I File An Extension
You can file for an extension if you need more time to prepare and file your taxes. Before the May 17 deadline, you must fill out and submit Form 4868, which is the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return form. At the time you file Form 4868, you must also pay what you estimate you owe in tax to avoid penalties and interest, the IRS says. If approved, this extension will give you an extra six months to file your taxes .
To qualify for this extension, you have to file the application before May 17, 2021. You will be notified if and when the application clears.
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.
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The 2021 Tax Season And Covid
COVID-19 continues to cripple many American households financially.
The United States Congress has responded to the ongoing crisis by authorizing relief to American taxpayers through stimulus checks, increased unemployment benefits, and small business loans.
Recently, IRS Commissioner Chuck Rittig directly recognized the hardships people are suffering due to the pandemic and the need for the IRS to navigate the changes in circumstances as a result.
“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… – Chuck Rittig
In keeping with the commissioners comments, the IRS has issued an automatic postponement of the federal income tax filing deadline for the 2020 tax year. Rather than meeting an April 15, 2021, filing deadline, individuals now have until May 17, 2021, to file their taxes and make tax payments.
New Tax Rules For The Foreign Earned Income Exclusion During The Covid
As Coronavirus safety concerns and travel bans increased, some Americans living abroad decided to return to the US. Many had intended to stay abroad but cut their plans short because of the pandemic. Taking into account these unique circumstances, the IRS decided to adjust the requirements to qualify for the Foreign Earned Income Exclusion.
Under the revised rules, if you reasonably expected to meet the eligibility requirements of the FEIE during 2019 or 2020 but failed to do so because of the Coronavirus pandemic, you can still claim the tax exclusion. However, you must have left your country of residence within a specified date range. The date range is determined by when the period of adverse conditions began in different regions.
Therefore, you can still qualify for the FEIE if you left these regions after the dates below:
The period for this exception will end on July 15, 2020, unless the Treasury Department and IRS choose to extend it. This means that, if you left China between December 1, 2019 and July 15, 2020, you could still qualify as physically present or a bona fide residentso long as you expected to meet the requirements if not for the COVID-19 Emergency.
To determine the maximum available exclusion you can claim, youll need to prorate the FEIE amount based on the percentage of the year that you lived outside the US.
Heres how you would calculate the maximum FEIE exclusion for 2020 based on our example above:
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Quick Facts: Top Coronavirus Tax Changes For Us Expats
- The IRS has postponed the April 15, 2021 filing deadline to May 17, 2021.
- Despite the extension, the IRS recommends you file as soon as possible, especially if you may be owed a refund or missed stimulus payments.
- Tax credits and loans may help small businesses offset the economic impact of the COVID-19 Emergency.
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The Department Of Revenue Is Extending The Filing And Payment Deadline For Hall Income
The irs extended the tax deadline for 2021 from april 15 to may 17 for all individuals. If you are an individual or business that successfully extended your tax filing to october 15, 2021, you now have until january 3, 2022 to file. The deadline for federal individual income tax returns to may 17. While april 15 is the most . For most small businesses, this year’s tax deadline is march 15, 2021. The department of revenue is extending the filing and payment deadline for hall income. On march 17, 2021, the irs officially extended the federal income tax filing deadline from april 15 to may 17. In order for an extension to be valid, at least 80% of the tax liability must be on account on april 15, 2021 through payments, withholding, and credits. For those making quarterly estimated payments using quarterly taxes, the dates are . The individual income tax payment and filing deadline has been extended by 32 days to may 17, 2021, without penalties and . It’s that time of year again: If you are a sole proprietor . That means taxpayers who owe .
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View Tax Account Online
Taxpayers can use their online account to securely see important information when preparing to file their tax return or following up on balances or notices. This includes:
- Adjusted Gross Income: This can be useful if using a different tax software or tax preparer this year.
- Economic Impact Payment amounts: Eligible individuals who did not receive the full amounts of both Economic Impact Payments may claim the Recovery Rebate Credit on their 2020 federal tax return. To claim the full amount, taxpayers will need to know the amounts of the Economic Impact Payments received. These amounts can be found on the Tax Records tab in online account.
- Estimated tax payment amounts: The total of any estimated tax payments made during the year or refunds applied as a credit can be found on the Account Balance tab in online account, and a record of each payment appears under Payment Activity.
Additionally, taxpayers can view the:
- Amount owed for any past years, updated for the current calendar day,
- Payment history and any scheduled or pending payments,
- Payment plan details,
Could The 2021 Payments Negatively Affect My Taxes When It’s Time To File
If you’re eligible for advance payments and choose to get the extra cash this year, you’ll receive the second half of your total on your taxes next year. You’ll need to know the total amount of child tax credit money received in 2021 to compare it with how much you can claim. The IRS will send a letter with your personalized estimate that you can use for your 2021 tax return.
Since the IRS uses your 2019 or 2020 tax return, your family may not qualify for the child tax credit payment when you file your 2021 tax return in 2022, or it could have issued an “overpayment.” In this case, you may have to repay the IRS some or all of the credit. The child tax credit rules aren’t as flexible as the stimulus check rules regarding overpayment. One example of when this would happen is if you and the other parent of your child both received the child tax credit for the same dependent.
To avoid this inconvenience, make sure all your information is updated as soon as possible. The IRS says the Update Portal will soon let you make adjustments to verify your new income and number of children. Another option is to unenroll from early child tax credit payments and get the money in 2022. Here’s what to know about how the payments affect your tax refund next year.
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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.
What Happens If I Miss The Tax Deadline
If you received an extension and fail to file your income taxes by midnight on Oct. 15, 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 start to accrue on any remaining unpaid tax due. There’s also a $330 failure-to-file penalty under the Taxpayer First Act of 2019.
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 you filed for an extension through Oct. 15, you were supposed to pay your taxes by May 17. If you owe money, you would have been required to estimate the amount due and pay it with your Form 4868. If you did that, you should have automatically been 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.
Bottom line? It’s best to e-file or postmark your individual tax return as early as possible. CNET’s roundup of the best tax software for 2021 features an array of packages that can help you take care of business quickly and affordably.
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What If You Cant Pay Your Taxes
File your return anyway, and immediately apply for a payment plan if you can’t pay the tax you owe all at once. The IRS will generally let you pay over time, as long as you make arrangements to do so.
Go to IRS Direct Pay and have the payment debited directly from your bank account if you owe money and don’t want to send a check to the IRS via snail mail, risking the extra time that might entail.
Ira & Hsa Deadline Extension
At the time of the IRS’s initial announcement, it was unclear whether or not the tax filing extension pertained to certain contributions as well. On March 29, the IRS confirmed that individuals may continue to make 2020 contributions to their tax-advantaged accounts up until May 17, 2021.2
You may make 2020 contributions to accounts including:2
- IRA & Roth IRA
- Archer Medical Savings Account
- Coverdell education savings account
When Are Estimated Taxes Due
The tax-filing deadline extension does not apply to those filing estimated taxes, according to the IRS.
Those who pay estimated taxes have a slightly different schedule from others. People who pay quarterly estimated taxes include workers who are self-employed, earn money from tips, or any similar entrepreneurial or independent contractor jobs. If your paycheck doesnt have taxes taken out before the money gets to you, then you should be paying estimated taxes quarterly.
Estimated taxes are due quarterly with Form 1040-ES, and there are two sets of dates. If youre self-employed or a farmer or fisherman:
- First quarter payments are due April 15
- Second quarter payments are due June 15
- Third quarter payments are due Sept. 15
- Fourth quarter payments are due Jan. 15
If youre an employee who earns tips, youll be paying monthly instead of quarterly:
How To File An Extension
To file an extension, submit IRS Form 4868 electronically by the filing deadline on May 17. You can also do it for free using any of the Free File software offered by the major tax preparation companies. These often help you estimate your tax due so you can make a payment.
Another option is to print out the form and send it to the IRS address for your state by the deadline.
Even if you file an extension, you still need to pay what you owe by May 17. If you underestimate that amount, you could end up paying interest on what you dont pay.
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Assistance For Americans Abroad
The State Department has encouraged Americans broad to enroll in the Smart Traveler Enrollment Program to receive country-specific safety information and to help the US Embassy contact you and your family in case of an emergency.
If you experience a Coronavirus related emergency while overseas, you should contact the nearest US Embassy or call:
- From the U.S. & Canada: 1-888-407-4747
- From Overseas: +1 202-501-4444
Is There Anything Extra I Need To Do If I Have Shared Custody Of My Child
For the first two stimulus checks, some parents who shared custody of a child but weren’t married to each other were entitled to each claim money for the same child. That was only if they alternated years for claiming the dependent — in other words, if one parent claimed the child on their taxes in odd years and the other claimed the child on their taxes in even years.
This is no longer allowed for the third check, and we’re told it won’t work that way for the child tax credit payments either. Here’s what we know so far about child tax credit and shared custody situations.
If the child switches homes this year, the parents will need to agree on who will claim the child on their taxes this year. The parent that claims the child and receives the child tax credit payments will need to fill out Form 8332 and include it with the tax return. If you don’t qualify or want to get the money in one lump sum, you can also opt out of early payments. Remember, if you’re not eligible but receive the money, you may have to pay the IRS back during tax time.
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There Are Some Groups Who Still Have Time To File
- Special deadline exceptions may apply for certain military service members and eligible support personnel in combat zones. Several resources are available for service members and their families who may be eligible for these exceptions.
- People who have a valid extension and are in or affected by a federally-declared disaster may be allowed more time to file.
Can I Get Help If I Missed The Tax Extension Deadline For 2021
Absolutely! When youre facing any kind of potential penalty with the IRS, we definitely recommend getting assistance. An expert tax team can not only help you file an error-free tax return, but we can help you maximize your tax refund and ensure you dont leave any economic relief payments on the table.
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Irs Filing Date Extension Confirmed
The original date for filing your taxes was 15 April 2021 but the deadline has been extended to 17 May in order to “help taxpayers navigate the unusual circumstances related to the pandemic.”
Once this change to the date was announced, IRS Commissioner Chuck Rettig issued a statement:
“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.
“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.”
#IRS and extend filing and payment deadline for individuals to May 17, 2021. Details at
Individual taxpayers can now also postpone federal income tax payments for the 2020 tax year due on 15 April 15, 2021, though to 17 May , without penalties and interest, regardless of the amount owed.