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Like many taxpayers, your tax refund may be delayed.
The COVID-19 pandemic hit the world by storm. From stimulus payments, tax changes and extending the tax deadline, your refund may be taking longer than expected.
If you noticed that your tax refund is stuck on the “processing” status when checking the IRS Where’s My Refund Tool, you may need to allow some more time for the IRS to disburse your refund. Instead of taxpayers receiving their tax refund within two to three weeks, taxpayers are waiting from six to eight weeks to get their refund.
Here’s why your refund may still be delayed with the IRS.
If you didn’t file a tax return as yet, we advise that you do it as soon as possible. If you missed the 2021 tax deadline, the good news is you can still file.
Here’s some helpful information before getting started.
Getting a refund?
If you’re due a refund from the IRS, you’re in luck. You are not subject to the tax deadline nor will you be penalized. Technically, you have three years to file from the original tax deadline to claim your refund as well. For example, you have until April 15, 2021 to claim your 2020 tax refund. However, in order to e-file your tax return, you must file by October 15, 2021.
Do you owe taxes?
In the case that you didn’t request a tax extension from the IRS, you must take action by filing and paying now. As a reminder, you must have paid your taxes by May 17 to avoid penalties; with an IRS extension or not.
For the 2020 tax year, the standard deduction amounts have increased. Here are the amounts below.
Single or Married filing separately – $12,400
Married filing jointly and Qualifying widow(er) – $24,800
Head of Household – $18,650
For taxpayers who are blind or at least 65 years old, they can claim an additional standard deduction. The standard deduction is $1,300 and $1,650 for the single or head of household filing status.
Taxpayers who are both blind and of eligible age receive a doubled additional standard deduction.
For the 2020 tax year, there’s a new income statement.
The IRS has introduced a new form called Form 1099-NEC. Whether you’re well versed in reporting your taxes or not, this may be confusing.
Typically, your self employment income is reported on box 7 of your 1099-MISC statement. For the 2020 tax year it is now reported on a 1099-NEC. The IRS has done this to separate filing deadlines.
Many Americans want to know how our future president’s tax plan will affect them.
Biden’s tax plan will affect wealthier Americans, corporations, and everyday individual taxpayers. He also plans on making significant tax revisions on Trump’s previous tax plan which took place in 2017.
Skip the tax jargon by taking a look at this quick breakdown.
The IRS’ goal is to simplify the W-4 form to reflect a transparent withholding system. The 2021 W-4 form is still in it’s draft stages, but will most likely reflect the 2020 W-4.
Although the 2020 and 2021 W-4 forms appear different from previous forms, we’re here to break down the changes for you.
Rushing to file your tax return at the last minute?
We get it. Life is busy, especially when working from home with family or if you have other priorities. If filing your taxes has slipped your mind, we’re here to help.
The good news is, you can still file. Here’s what you need to know.
Important Tax Dates
If you missed the 2019 tax deadline, the following tax dates are important.
July 15, 2020 – The final day to file and pay the taxes you owe to the IRS without accumulating penalties. It is also the last day to file a request of a filing extension.
October 15, 2020 – The last day to e-file all returns and the extension deadline.
The IRS already announced the inflation adjustments for next year.
Although the e-file and extension deadline is in a month, the year is almost gone. 2020 has been more than a roller coaster ride, and the next tax season is only a few months away.
Many taxpayers may wonder how their stimulus payments affect your 2020 taxes, if they’re in the same tax bracket, and changes for the 2021 tax season. Keep on reading to find out.
Jobless Americans are worrying about their unemployment benefits.
Since the extra $600 weekly benefit disappeared, their income is significantly less. Those who are out of work depend on their unemployment income to pay their bills.
With the IRS system in place for stimulus payments, the only individuals targeted to use the Non-Filers tool had to have social security benefits or did not have any requirement to file a 2019 tax return. Typically, these taxpayers are retired individuals.
