As if 2020 wasn’t enough going on, it’s tax time again. In an effort to provide relief to the Americans they are struggling withand , March – and folks, this is Wednesday.
It is worth noting that Treasury Secretary Steven Mnuchin “considered” extending this deadline even further – but the government agency has since announced that it will hold on July 15. If you haven’t submitted, there is no time left for delays. According to the IRS, taxes have to be estimated paid until July 15th to avoid penalties and interest – but you actually have until October 15th file Your tax return. More on this below.
For the tax year 2019, the IRS adjusted the individual income tax classes and adjusted them to inflation. And there are new regulations that affect the standard deduction, 401 (k) plans, and health savings accounts that can affect how you prepare your taxes. The main changes include:
- The standard deduction is now $ 12,200 for single registrants and $ 24,400 for couples who submit together (more information).
- The premium limit of 401 (k) has been increased to $ 19,000, but the catch-up limit for people over 50 is still $ 6,000 (learn more)
- The health deposit account limit has been increased to $ 3,500 for self-insurance and $ 7,000 for families (learn more).
- The “individual mandate penalty” previously imposed on people without health insurance has now been removed (further information).
Last year,. This year, many government agencies have closed their doors or are working at greatly reduced capacity. Many taxpayers have to rely on online resources to control the registration process. The IRS has published a 12-page PDF that contains the key changes that have come into force in the past year. You can find answers to many questions on the IRS website.
There are also many companies that would be happy to help you prepare your taxes, of course for a fee. (Depending on your annual income, you may be entitled to free preparation preparation resources.) CNETs Crew prepared , including a number of articles covering the 2020 tax season from every angle:
Below are answers to frequently asked questions about when to pay, how to pay, who to pay, where to send your payment, and when to expect your refund if you’re lucky.
When are taxes due this year?
For most people in the U.S., taxes for the 2019 calendar year are officially due on Wednesday, July 15, 2020.
What happens if I miss the deadline?
The penalty for not submitting applications will be $ 300 in 2020. (The Taxpayer First Act of 2019 will increase this penalty to $ 330 in 2021.) To avoid payment, you should plan to email or stamp your individual tax return no later than midnight on July 15th. Among the many advantages of early submission,on your behalf is reason enough to get your taxes done as quickly as possible.
How do I request an extension?
The IRS usually allows taxpayers to apply for an extension. This year, taxpayers can apply for an additional three months for filing, according to the instructions on Form 4868 (“Application to Automatically Extend the Deadline for Filing the US Income Tax Return”), so the Thursday, October 15, 2020 due date.
How do I file my taxes online?
CNET has rounded upwith providers such as TurboTax, H&R Block and TaxSlayer. These companies can significantly simplify the tax return process – from reporting your taxable or self-employed income to setting up a direct deposit to making your individual deductions.
However, the IRS does provide a list of free online tax preparation software that many of these providers offer. The only catch: it’s only free if you qualify to use a 1040EZ form. This means that your tax situation must be relatively simple. You can use it if you earn less than $ 100,000 a year, don’t give any deductions, and don’t own a company.
Of course, if you want to list deductions or want to have a more complex financial situation – you’re running a business, investing, or generating rental income – you’ll have to pay for a higher level of service, which can be a few hundred dollars. For most people, even the most luxurious online package is far cheaper than hiring an authorized tax professional. And if you’d rather keep it up to date, the IRS online tax forms do some, but not all, of the calculations for you, and still allow you to create or print and send e-files.
When do I have to submit my state taxes?
This year, most states have extended their tax return deadlines to July 15, 2020. And some states have pushed it further out; Hawaii’s state tax deadline is July 20 and Iowa’s July 31. Missouri’s state tax deadline was May 15.
Can I submit my government taxes online?
Many states have their own online tax platforms that can usually be used for free. TurboTax, H&R Block, and other online tax tools can also help you file your government tax return and import most of the information from a federal tax statement that has already been made, although a fee is usually charged. Check outto see which one is best for you.
When do I get my tax refund?
How quickly you can expect your refund will depend on how you submit, when you submit, and what payment method you choose. Online filing and earlier filing usually result in faster processing. In a normal year, the typical turnaround is between one and three weeks. However, given the extreme abnormality of 2020, all bets are void.
Choosing direct deposit as the payment method so that the IRS deposits your refund directly into your bank account usually results in the fastest processing. A direct deposit with e-Collect, where your tax advisor’s fee will be deducted from your refund, can increase your waiting time by several days. It can take several weeks for a check to arrive.
Where do I send my taxes to?
If you submit online, you do not have to print or send anything. However, we recommend that you save an electronic copy. Otherwise, you must send your return to the IRS. The specific mailing address depends on which tax form you use and which state you live in. The IRS has published the full list here.
It is important that you send your return to the correct IRS office. A mistake can have serious consequences and result in a penalty or a fine.
How do I send my tax payment to the IRS?
If you send your tax payment by post, you can choose to have the money withdrawn directly from your bank account or include a personal check or money order. If you choose the latter, pay it to “US Treasury” and provide your name, address, telephone number, social security number or ITIN (Individual Tax ID Number). Under no circumstances should you send cash to the IRS.
How do I check the status of my refund?
The IRS website has a handy web-based tool that you can use to check the status of your refund. There is also the mobile app IRS2Go. You can usually access your refund status about 24 hours after submitting electronically or four weeks after submitting a return. To verify your status, you will need to provide your social security number or ITIN, registration status, and the exact amount of your refund. If your status is “received”, the IRS will process your return. “Approved” means that your refund is on its way.
I have questions about my taxes. Can I call the IRS?
There are numerous ways to contact the IRS. The agency appears to have suspended their live chat for the time being, but you can still ask questions using the online form. If you’d rather speak to a person, the IRS maintains a number of dedicated phone lines that are open Monday through Friday, 7 AM to 10 PM (local time). Individuals can call 800-829-1040 and companies can call 800-829-4933.
And there is always the Interactive Tax Assistant – an online tool that provides answers to a number of tax questions. It can determine whether some type of income is taxable, whether you are entitled to apply for certain credits, and whether you can deduct expenses from your tax return. It also provides answers to common questions such as: B. Determining your registration status, whether you can claim relatives, whether you have to file a tax return at all, etc.
Where can I find help with my taxes?
There are many online applications and services and you can.
The IRS usually offers free tax preparation help through a range of programs. For example, the Volunteer Income Tax Assistance program typically helps people who earn less than $ 54,000, are disabled, or have limited English skills. The Tax Advice for Older People program specializes in tax issues that affect people aged 60 and over. However, due to COVID-19, many VITA locations – and all TCE locations – were closed. The IRS International Taxpayer Service Call Center is currently available Monday through Friday from 6 a.m. to 11 p.m. (CET) at 267-941-1000.