The nation’s tax season started later than normal. As of Friday, Feb. 12, the IRS has begun accepting and processing 2020 tax year returns.
In response to the Coronavirus pandemic, there are revised and updated provisions and important dates you should be aware of before filing your 2020 taxes this year. Here’s what you need to know.
When are my taxes due?
- Even though filing season started later than normal, you’re still required to file and pay any remaining federal income taxes you owe for 2020 on April 15, unless you file for an extension.
- This will help you avoid getting potential late payment and/or late filing penalties.
- If you happen to miss your filing deadlines, you might be eligible for a first-time-penalty-relief.
Can I file for an extension?
- Yes, if you submit a request for an extension to the IRS by April 15. This will give you a six-month extension, and your taxes will be due by October 15.
- Keep in mind, an extension to file is not an extension to pay what you owe. You’re still responsible for paying any remaining federal taxes owed on your 2020 federal taxes by April 15th, to avoid a potential late penalty.
- But if you take longer to file your taxes, you’ll have to wait longer to get your refund.
When can I expect to get my tax refund?
- Refunds are normally issued within 21 days of the IRS receiving your return. According to the IRS, the quickest way to receive your return is to file electronically and use direct deposit.
- To get a personalized refund date visit Where’s My Refund.
Are my stimulus payments taxable?
- No, the money is tax-free.
What if I didn’t get my stimulus payments?
- If you were eligible for the Economic Impact Payments and didn’t receive your money or only received a partial payment, you may be eligible to claim the Recovery Rebate Credit when you file your 2020 tax return.
- That credit will reduce your income tax liability dollar-for-dollar. And to the extent the credit exceeds your tax liability, you’ll get the remainder as a refund.
Are unemployment benefits taxable?
- Yes, unemployment benefits are taxable income if they’re received under the unemployment compensation laws of the United States or of a state.
- This includes that extra $600 per week individuals might have received in 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
- The IRS is encouraging people to use the IRS interactive tool – Are Payments I Receive for Being Unemployed Taxable? – and answer questions about unemployment benefits to help them determine if they’re taxable.
For more details on tax changes happening this year, click here.