On June 29, the Treasury and the internal revenue Service, the U.S. announced that it will adhere to the deadline for filing tax returns is July 15, not extending it, writes USA Today.
The Agency is urging U.S. residents to apply for an automatic extension until October 15 if they are unable to meet the deadline of July 15 by filling out this form.
Earlier this year, the IRS postponed the deadline for filing tax returns from April 15 to July 15 due to failure caused by pandemic coronavirus. While just last week the head of the Department of Finance Steven Mnuchin said that it will be a question of further postponement until September.
“The IRS understand that individuals affected by the coronavirus may not be able to fully pay their taxes by July 15, but we have many payment options to help taxpayers, said IRS Commissioner Chuck Rettig. — These simple payment methods available on IRS.gov and most of them can be done automatically, not turning to the representative of the IRS.”
According to the IRS, about 93 million applicants have received the tax refunds, amounting to an average of $2763.
Check you documentation of income
In January or February you should have received a form, stating how much income you have earned from their employers and received from other sources, reminiscent of Better Money Habits. If you work a full day, you must have a W-2 form detailing your earnings and tax revenues. If you work as a freelancer or on contract, you can have a 1099-MISC form with detailed description of what you have earned. You can also obtain the documents indicating dividends or interest received on investments (for example, form 1099-DIV or 1099-INT), or interest on student loans (form 1098-E). If you are a College student (or you are a dependent student), you will receive a form 1098-T, which States how much you paid for tuition and the amount you have received from grants or scholarships to help you calculate deductions and credits related to education expenses.
Tip: you can’t file tax returns until, until you receive a form W-2 or form 1099 from every place you worked during the year. When the time comes to apply, you use this data to populate a Form 1040 — IRS form for individual income taxes.
Learn which credits and deductions you can get
Understanding what credits and deductions you are eligible can help you gather the necessary documents. Here are a few to consider:
The credit of the depositor. If you do not study full-time and you have not filed as a dependent, you may be entitled to a tax credit if you participate in a pension plan. The loan amount depends on your filing status and adjusted gross income. In the 2020 tax year, if your filing status is not listed, you may qualify for this credit if your adjusted gross income is $32 500 or less. If you are married and submit a joint Declaration, you may be eligible for the credit if your adjusted gross income is $65 000 or less. Numbers can be changed in future tax years.
Interest on student loan. You can deduct up to $2,500 in interest payments, depending on your modified adjusted gross income.
Charitable deductions. Want to donate to your alma mater or favorite charity? Generally, you can deduct those donations if detail their taxes.
Freelance costs. If you are self-employed you can claim deductions for work-related expenses, such as industry subscriptions and stationery.
If you believe that you may qualify for additional credits or deductions, visit the IRS website.
Decide how to file a tax return
There are several options for preparing and filing tax returns. Find out about each to make the right choice:
“Free File”: if your adjusted gross income (your income less certain taxes) is less than a certain limit, the IRS offers free software to prepare tax returns, which can simplify the preparation of your documents, with functions that help to determine any deductions or credits that you could use.
Online forms IRS if your adjusted gross income exceeds the limit, the IRS offers electronic versions of paper forms that will help you in calculations, but they offer only basic advice and will not help you in determining which deductions or credits you could use.
Software for preparing taxes, if you want to get more detailed instructions you can pay a fee for the use of online tools that are available from several suppliers. They will tell you how to prepare a tax return, and help determine any deductions or credits to which you are entitled.
Professional help: If you know that you need an individual expert help, you can contact the firm for tax preparation or accountant. Make sure you work with someone whom you can trust. You will provide that person access to a large amount of sensitive personal information, so carefully choose a tax preparer. The IRS offers a catalogue of proven tax experts in your area. Although this does not guarantee their integrity, it is a good place to start.
Tip: remember that you may need to prepare and file a tax return state or local tax in addition to Federal.