Tax Season 2020: Coronavirus Deferred Filing Frequently Asked Questions
At the beginning of 2020, many thought that the chaos and mess of last year’s tax season was long over. According to experts, in the new year it would have been easier to deal with taxes, as people have better studied the new tax rules, recalls USA Today. But then the coronavirus crisis erupted in the world and the USA, which significantly complicated the tax season of 2020.
On March 17, the head of the US Treasury Department, Stephen Mnuchin, said at a press conference that most Americans could get a three-month grace period to pay their 2019 income taxes. The Internal Revenue Service (IRS) has extended the deadline for paying taxes after April 15 for another 90 days - until 15 July 2020 year. Do you personally need this delay? Let's try to figure it out.
Many people will not want to wait so long, especially those who expect a tax refund. The Internal Revenue Service said that most tax refunds are still issued within 21 days.
Here's a look at the key tax issues in the light of the coronavirus pandemic in 2020:
Question: How can extending the federal term until July 15 help me?
Answer: Taxpayers who owe money will be able to defer the payment of federal income tax from April 15 to July 15. For this you you will not have to no fines and interest, regardless of the amount owed. Deferring gives you 90 days and saves money.
Question: Can the IRS give me information on federal aid related to coronavirus?
Answer: The IRS has a dedicated page at www.irs.gov/coronavirusbut at the end of the day on March 30, a message was still published on it about the lack of information on assistance in connection with the coronavirus. It also says that you do not need to register to receive this help, and instead of making calls, it is better to follow the updates.
Question: Can I wait with contributions to the IRA or Roth IRA?
Answer: Yes, you can.
“Since the deadline for filing federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 has also been extended until July 15, 2020, ”the IRS said.
Question: Can I file my tax return now?
Answer: Yes. Many tax offices are working. Your accountant is probably working remotely. Some H&R Block offices remain open, but many of them mainly use drop-off services (collect your documents, find a suitable office and just leave the documents at the front desk - service representatives will pick them up from there, it is said on the official website).
Although the federal income tax deadline has been extended by 90 days, people still want to receive refunds as soon as possible. Those who are faced with layoffs, shortened working hours and lost jobs in the field of giganomics need to file a tax return of 2019 in order to receive a tax refund in the near future.
“Although tax day comes on July 15 due to the coronavirus pandemic, the IRS is still accepting tax returns and processing refunds,” said Susan Waldron, spokeswoman for H&R Block. "Refunds are vital for millions of families now, more important than ever."
Jackson Hewitt advises customers to first call and find out if their local office is open and ask about the hours of the visit. They offer various ways to reduce office time, including drop-offs. But the order of work was also amended: "We no longer accept visitors so that people do not gather in the lobby."
Question: What free online tax filing options are there?
Answer: Perhaps you want to try Free File this year. Hardly anyone uses it - less than 2% of taxpayers - but it's a good option, especially if you have time and want to save money.
Check out www.irs.gov and find the section Free file. Approximately 70% of taxpayers may qualify for some of the services offered, as measured by adjusted gross income. If your adjusted gross income is $ 69 or less, you are eligible to participate in the program. Tax software vendors can target specific groups by age or income. But the provider will offer services that match your conditions if your income is $ 000 or less.
Question: Can I go to the IRS office and get help?
“The IRS has temporarily suspended almost all personal contact with taxpayers,” reads a notice released on March 24. "All Taxpayer Assistance Centers are closed and the widespread discontinuance of personal services is relevant until further notice."
The IRS can solve some problems by phone if taxpayers have already scheduled a meeting at the help center.
Question: Are there any other reasons to file a tax return before April 15?
Answer: Yes. Did you miss the tax refund because you did not file your 2016 tax return? To get the money, you need to file a income tax return for 2016 before April 15, 2020. This period has not been extended. Otherwise, you will forever lose the chance to receive this unclaimed refund for 2016.
Some of the unclaimed refunds may belong to students, part-time workers, and others who may have missed filing a return.
In addition, if you must pay property taxes and gifts, the deadline of April 15th remains valid.
Question: What happens if I have already filed a tax return and paid taxes for 2019?
Answer: If you have already written a check for taxes, you will not receive this money back even for a short time. A new extension of 90 days will no longer help.
“But they (the taxpayers who have already paid) can take some comfort in the knowledge that their taxes are minus one problem,” said Marshall Hunt, a certified public accountant and director of tax policy at the Detroit Accounting Assistance Society.
If you have not paid yet, but have already planned an automatic electronic withdrawal of money by April 15, your payment will not be automatically transferred to July 15. But the IRS notes that there are ways to cancel and reschedule a payment.
“If you have scheduled a payment as part of your tax return (allowing electronic withdrawals), you can revoke (cancel) your payment by contacting the US Treasury Financial Agent at 888-353-4537. You must call to request a cancellation no later than 23:59 pm ET 2 business days before the scheduled payment date, ”the IRS said.
“If you are scheduled to pay with a credit or debit card, contact your card payment processor to cancel the payment,” the IRS said.
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