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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.
There has been a lot of confusion regarding economic stimulus payments.
Many are wondering which tool to choose when they go to the IRS website to track their stimulus payment. There are two tools, the Get My Payment Tool and the Non-Filers Tool. Both tools have different requirements.
The IRS has approved an economic stimulus package due to the spread of the Coronavirus (COVID-19).
A $2 trillion economic plan was passed by the Senate to combat the affects of COVID-19 on Americans. This stimulus plan includes payments to individuals, the self-employed, unemployment coverage, and more.
Here are some common questions about the coronavirus stimulus checks.
The 2020 tax season starts on January 27, 2020. January kicks off the new year and with a new year, comes a new tax season. Get a fresh start by finding out the new tax changes for your 2019 tax return.
Additionally, check out some tax reminders below.
Tax dates to remember
It’s important to set a reminder whether it’s your phone or calendar.
Trying to understand anything tax related makes you feel like you’re back in grade school.
However, it doesn’t have to be difficult. Here’s some sure-fire information that may help you out if you’re a first time filer, or if you have some general questions about claiming tax deductions.
What’s the difference between claiming the standard deduction and itemizing deductions?
In general terms, a tax deduction is a certain amount you are allowed to exclude from your income. This means that you are taxed on a lower amount of income, and thus pay less in taxes.
While not as valuable as tax credits – which directly decrease your tax liability – deductions can still reduce your tax burden significantly.
There are two ways to claim deductions.
Itemize deductions. Add up all of your allowable expenses and subtract them from your income.
Claim the standard deduction. Deduct the basic amount available to everyone.
While preparing your taxes you need to figure out whether you get a bigger tax break from itemizing your deductions or claiming the standard deduction. Most people end up claiming the standard deduction, but some people have enough allowable expenses to make it worth their while to itemize deductions.
Life is never put on hold, even for tax season. Before you know it, the April and even October deadline fly right by. Then, you forget to file it next tax season and then the season after that.
However, although the deadlines go by, you should still file your prior year tax return. Here are some reasons why.
1. You’re getting a refund
One of the most important things to remember is that the IRS does not wait for anyone. According to the IRS, you have a three-year statute of limitations for refunds; meaning you can only claim tax refunds going back three tax years within the original April due date.
For example, if you want to claim a 2016 tax refund, your last chance to claim it is April 15, 2020. This means you must file by that date to get your refund. Therefore, any tax years going back from 2016 cannot be claimed.
Check out our helpful tax calculators to determine your refund for relevant tax years.
With the year ending soon, another tax season is on the way. If you’re stuck trying to figure out what the next steps are for the missed 2018 tax deadline, keep reading.
Can you still e-file your 2018 tax return?
Although April 15, 2019, was the original tax deadline, you can still e-file your tax return until October 15, 2019. After this date, you will be required to paper-file your tax return. This means that you must to print, sign, and mail your tax return to the IRS and your state department of revenue.
