WASHINGTON DC (KVOA) – The Internal Revenue Service reminds taxpayers of the upcoming October 15 deadline for filing 2020 tax returns. People who have requested an extension must file by the extension deadline for avoid the late filing penalty. Electronic filing options, such as IRS Free File, are always available.
Although October 15 is the last day for most people to report, some taxpayers may have more time. They include: Â· Members of the military and others serving in a combat zone. They usually have 180 days after leaving the combat zone to file returns and pay the taxes owed.
Â· Taxpayers from federally declared disaster areas who already had valid extensions. For more details, see the Disaster Relief page on IRS.gov.
There is usually no penalty for failure to file if the taxpayer needs to be reimbursed. However, people who wait too long to file and request a refund may lose it altogether. Those who have not yet filed a tax return for 2020 owe tax and have not requested an extension can usually avoid additional penalties and interest by filing the return as soon as possible and paying the taxes owed. .
Schedule federal tax payments electronically
Taxpayers can file now and schedule their federal tax payments until the October 15 due date. They can pay online, by phone or with their mobile device and the IRS2Go app. When paying federal taxes electronically, taxpayers should remember: Â· Electronic payment options are the optimal way to make a tax payment.
Â· They can pay when they file an electronic return using online tax software. If using a tax preparer, taxpayers should ask the tax preparer to make the tax payment through an electronic withdrawal of funds from a bank account. Â· IRS Direct Pay allows taxpayers to pay online directly from a checking or savings account for free, and schedule payments up to 365 days in advance.
Choices of paying with a credit card, debit card, or digital wallet option are available through a payment processor. The payment processor, not the IRS, charges a fee for this service. Â· The IRS2Go app offers mobile-friendly payment options, including direct payment and debit or credit card payments on mobile devices. Â· The electronic federal tax payment system is convenient, secure and easy. Choose to pay online or over the phone using the EFTPS voice response system.
View Tax Bill Online Taxpayers can use their online account to securely view important information when preparing to file their tax return or tracking balances or notices. This includes:
Â· Adjusted Gross Income: This can be useful if you are using other tax software or another tax preparer this year.
Â· Economic impact payment amounts: Eligible individuals who have not received the full amount of both economic impact payments can claim the clawback refund credit on their 2020 federal income tax return. taxpayers will need to know the amounts of economic impact payments received. These amounts can be found in the Tax records tab of the online account.
Estimated amounts of tax payments: the total of estimated tax payments made during the year or refunds applied as a credit can be found on the Account Balance tab in the online account, and a Each payment record appears under Payment Activity.
In addition, taxpayers can consult:
Amount due for past years, updated for the current calendar day,
Payment history and any scheduled or pending payments,
Details of the payment plan,
Digital copies of certain IRS notices, and
Â· Approve or reject requests for authorization from tax specialists.
Choose direct deposit for refunds
The safest and fastest way for people to get a refund is to file electronically and have their refund electronically deposited into their bank or other financial account, the IRS said. Taxpayers can use direct deposit to deposit their refund into one, two, or even three accounts. They can also buy US savings bonds. People who don’t have a bank account can go to the FDIC or National Credit Union Association website to use their credit union locator tool to find out where to open an online account at a bank or business. credit union. Veterans can use the Veterans Benefit Banking Program (VBBP) to access financial services from participating banks.
Monthly Child Tax Credit Advance Payments Millions of American families currently receive monthly advance child tax credit payments by direct deposit or paper check. These payments represent half of the increase in the American Rescue Plan’s child tax credit and will continue until the end of the year. For people who are eligible and in extension of their 2020 tax returns, the IRS uses tax information from the previous year, 2019 for the most part, to determine the amount of the credit. The IRS urges people who have requested an extension to file as soon as possible if they have experienced a major change such as the birth of a child in 2020. Once this return is processed, the IRS can calculate the credit on the basis of the 2020 declaration and pay it. in full over the remaining months in 2021.
Those who file and have their 2020 return processed on or before November 1 may be eligible for two half-credit payments in 2021. Likewise, people who file and have their return processed on or before November 29 may be eligible. to a payment. To speed up the processing of returns and avoid delays, the IRS urges everyone to file electronically. Complete information on the advance child tax credit is available at IRS.gov.
Act Soon to Claim Missing Stimulus Payments
For anyone who missed the first two rounds of stimulus payouts, it’s not too late. People who have not received a first and second economic impact payment or who have received less than the full amount may get the missing money if they are entitled to it, but they must act quickly. When it comes to missing stimulus payments, it is essential that eligible people file a tax return for 2020 or use the non-filer registration tool for the Child Tax Credit, even if they do not. usually not produce the information the IRS needs to send the payments. . The IRS will also automatically assess the taxpayer’s eligibility for the third Economic Impact Payment when processing the 2020 return.
The IRS will continue to issue eligible taxpayers with their third Economic Impact Payment and escalated payments until the end of 2021. File a 2020 tax return electronically as soon as possible to give the IRS time to process and issue payments before the end of 2021..
IRS.gov Help Taxpayers will find answers to many questions using the Interactive Tax Assistant (ITA), a tax law resource that works using a series of questions and answers. Additionally, the IRS offers payment options on IRS.gov/payments and tax information is available in multiple languages ââby clicking on the “English” tab on the IRS.gov home page.