The extension of the tax deadline for this year is just a few weeks away and if you are still waiting for your tax to be filed for the 2020 tax return you may lose all your refund along with stimulus money.
The tax filing has already been extended to 17th May however a lot of people are still rushing to file their 2020 tax returns. A lot of people waited for the extension just to buy some more time and to get their records or other advice from professionals. However, that tax extension is here again. The last date for this tax extension is October and if you miss it you will have to give late fees along with interest. Other than that if you miss out on your tax filing, you will be missing out on the IRS money, such as a refund for tax or any stimulus check or child tax credits.
Here is how you can know if this tax filing extension is for you and everything you should know about the extension of tax filing.
Are you qualified for a tax extension?
A person would be eligible for tax extension if you have filed the extension from 4868 by paper or using an e-file before the deadline of 17th May. One is required to pay all parts of their tax if they have used Direct Pay, by debit or credit card, or by the Electronic Tax Payment System and even add that you also wish to file for the tax extension.
How can you file your 2020 tax return now?
As per the IRS, all the people who are yet to pay tax can schedule the tax payment online, either directly by phone, or can file it with the IRS2Go app. If any individual hasn’t done the tax payment yet then they are required to pay for it online and IRS even offers various ways from where you can make your tax payment which also contains Direct Pay, and it is directly connected to a savings account. One can even pay the tac using the mobile app or through an Electronic payment system.
Has the extension postponed paying money to IRS?
The extension of the tax file hasn’t delayed any paying of money, Extending the deadline till October didn’t delay the payment you owe. As per the IRS, you were required to calculate up to 90% of your tax till 17th May to avoid payment of other interests and other penalties along with your income tax.
The penalty for related payment is almost 0.5% per month on the tax not paid within the deadline The penalty can even be charged up to 5% by IRS on the tax which is due every month. If you have filed your return after 60 days of the deadline, the minimum penalty would cost $435 or 100% of the tax which is not paid.
If you are owed any amount from IRS the 1st two stimulus checks and in case you haven’t received any of the checks or have received less then you will be able to claim for the amount from your 2020 tax return. Here if you wait any longer to file your tax return then it will take as much time to get the stimulus payment as well.
However, the IRS is planning on calculating your eligibility for 3rd stimulus check during your 2020 return. If your amount is calculate using your tax return for 2019 then you are more likely to receive more payment for the 3rd Stimulus checks. Moreover, unless a person files a 2020 tax return the IRS will not be able to access any information. IRS is planning to provide taxpayers with a 3rd stimulus payment by the end of 2021.
The IRS is planning on using the tax return to calculate how much amount qualifies for the child tax credit this year. All the payments which will be done monthly payments are going to start in July till December. If anyone has been delayed in paying for the tax return of 2020 then IRS will consider the 2019 tax return to evaluate the payments.
If any person has changed his income and his older payment is processed it is more likely that he is going to get the lesser amount and if you still have not filed your tax return then you can file it by 15th October online.
Will your refund be delayed due to a tax extension?
The refund on your tax payments completely depends on the day you file your return. However one has till 15th October to file the tax return. As the IRS is facing some delays and there was a lot piled up so in few cases the refunds can be delayed up to 21 days and some refunds are taking up to 120 days which especially require corrections
How to check your tax account online?
You can visit the IRS account online and check all the details there. Once can access all the details along with the gross income, stimulus checks and can review the tax payments as well.
- 1 Are you qualified for a tax extension?
- 2 How can you file your 2020 tax return now?
- 3 Has the extension postponed paying money to IRS?
- 4 How is stimulus payment related to the 2020 tax return?
- 5 How is your 2020 tax return related to child tax credit money?
- 6 Will your refund be delayed due to a tax extension?
- 7 How to check your tax account online?