Connect with us


2020 taxes: Everything you need to know about filing this year




And many of last year’s changes and upheavals have led to changes in this year’s statements. Due to the Covid crisis, there are a lot of new and revised provisions and important dates that you will need to know before filing the 2020 taxes this year. These are some of the most important.

Although the original filing and payment due date was April 15, the IRS did now pushed the deadline is May 17 to give taxpayers, tax preparers and the IRS more time to order the many changes affecting 2020 taxes latest Covid relief package. As it is, the presentation season began a few weeks later this year, as the IRS had hands complete administration of Covid first aid package supplies.

Unless you choose to submit an extension (see next question) you will have to file and pay the federal income taxes you have to pay by 2020 before May 17th.

This will prevent you from being penalized for delays or delays.

But if you forget your submission or payment deadlines, you may be eligible first sentence relief.

There are two exceptions to the new extended federal term.

The first applies to anyone who pays estimated taxes, including many small businesses. According to the IRS, your regular April 15 payment is still due on April 15th.

The second applies to all people living in Texas, Oklahoma and Louisiana, who were hard hit by the February storms. The IRS spread the federal tax deadline for residents of those states is June 15.

Do I also have more time to file my state taxes?

Not necessarily.

Although the IRS extended the federal filing deadline, this does not mean that individual states extend their own tax deadlines.

Files a states that do not need it can file their federal declaration (or at least calculate what they will put on their federal declaration) before April 15th.

This is because states often use federal adjusted gross income or federal taxable income as a starting point to determine the income of state taxpayers.

So far, California, Kentucky, Maine and Pennsylvania have extended their submission deadlines to May 17 to align with the new federal deadline. Maryland had previously extended the submission deadline, until July 15th. Other states still have the original filing date, which is April 15 in most cases, according to the Federation of Tax Administrators.

The current filing dates for some states differ. They are Hawaii, April 20; Delaware and Iowa, April 30; Virginia, May 3; and Louisiana, May 17th.

Can I submit an extension?

Yes. You may get a five-month automatic extension to file federal income taxes for 2020, which means you won’t have to pay until Oct. 15. To do it, submit your request to the IRS before May 17th.

Note that a file extension is not an extension to pay what you have to pay. You will still have to pay the remaining federal taxes you have on your 2020 income before May 17, if you want to avoid a possible late penalty.

And if you’re owed a refund, taking longer to file taxes means you’ll wait longer to get the refund.

When can I expect my refund?

Refunds are typically issued within 21 days of receipt of the return by the IRS. The quickest way to receive yours is to submit an electronic file and choose a direct deposit, the IRS points out.

The agency has also said it will take longer to process documents sent by mail, such as paper tax returns, and correspondence related to the tax return, for example, if the IRS requested more information or went find an error in the presenter’s calculations. It also started this year with a delay of millions of 2019 returns that needed to be processed.

To better assess when the refund may arrive, you can consult the IRS tool “Where’s my refund?” either within 24 hours of the agency indicating that it has received its return filed by email or four weeks after it has mailed its return on paper.

Are my incentive payments subject to taxes?

No. The money is tax free.

But some people are eligible for the money did not receive the first two rounds of payments – mainly those whose income in 2019 is higher than that of 2020 or people who did not file tax returns for 2019 or 2018. They will be able to receive the money they owe them through their federal return whenever they claim Repayable recovery bonus credit.

This credit will reduce your dollar-for-dollar bond amount. And to the extent that the credit exceeds your tax liability, you will get the rest as a refund.

For more information, see here i here.

Are my unemployment benefits taxable?

Yes, but for households with incomes below $ 150,000 last year, the first $ 10,200 in unemployment benefits will be exempt from federal income tax, thanks to a provision from the latest Covid relief package signed into law by President Joe Biden.

In general, however, unemployment compensation is treated as taxable income, both by the IRS and by most states. (Exceptions are Alabama, Alaska, California, Florida, Montana, Nevada, New Hampshire, New Jersey, Pennsylvania, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, and Wyoming.)

If you did not choose to withhold any income tax from your unemployment contributions during the year, the full tax motion will be assessed when you file your return.

But if your income for 2020 was too low because you didn’t work for much of last year, it’s unlikely you’ll have to cut a tax check. Instead, you’ll see that federal and state reimbursements are deducted from your income tax on your unemployment benefits.

What other new tax changes related to the pandemic should I know about?

Congress made several changes in tax benefits, such as the Income Tax Credit, or created new ones for individuals and small business owners to provide pandemic relief.
Small business owners who received one tax free loan, forgiven of the Payment Check Protection Program can still deduct the business expenses they paid with the loan money.
People who take the standard deduction can now get one new charitable deduction although they do not detail.
And eligible self-employed people can claim one new tax credit for medical leave and family leave which was created by the Family Coronavirus Response Act.