Filing your taxes always is stressful. If you top on all of the stressors from Coronavirus it’s easy to see how millions of Americans are hunting to find solutions for their various financial issues. Luckily the government has stepped in and provided a stopgap and moved the Federal tax filing date to July 15 of this year. Let’s take a look at some FAQs.
Filing Now Or Later?
You can certainly still file now and in fact, it might even be easier than before. Many different self-file online tax services such as IRS Free Filing, Credit Karma and H and R Block are now offering not only free ways to file but live chat and support (some a $50 value!) for absolutely free! Filing taxes during Coronavirus just got easier.
The IRS has stated that the expected refund date is 21 days. The sooner you file, the quicker you will get your refund. The Coronavirus pandemic still has the ability to slow down this refund, so it’s best to file as soon as you can since we do not know other factors that could delay it.
Want Your $1,200 Stimulus Check Faster?
The IRS will use your 2019 or 2018 tax return to calculate the amount of your payment for your stimulus checks. If you did not file your taxes in 2018, you should file your taxes as soon as possible to receive these benefits.
The IRS says that the money will be deposited directly into the same banking account and the taxpayer doesn’t have to take any action to receive it. So, make sure that you authorize a direct deposit for refunds on your 2019 tax returns if you haven’t done it in 2018.
Don’t want to file by July 15th?
Thankfully you can still file for an extension, it will be Form 4868. With this extension, you will have until October 15th of 2020 to do so. Keep in mind if you delay filing, you will delay your refund if eligible. Your refund should still come 21 days after your filing, which would put your received refund time period in early November.
You can also check whether you owe taxes or a refund by using IRS Tax Withholding Estimator. If you owe taxes this year and are looking to come up with ways to help alleviate the cost, take a look at our blog which talks about other resources to earn extra income. Also, take a look if you are in a position where you need to reduce bills from utilities or budget with efficiency.
Deadline for State Taxes?
Federal taxes are the only official filing who received the deadline, however, some states have also agreed to push back on their deadlines. Make sure to monitor and view your states websites on file to see if they have made decisions on filing taxes during Coronavirus
Most of the research that we have seen has shown that filing for state taxes was moved back to the federal deadline of July 15th of this year. Keep in mind though that the same principle applies to federal filings. The quicker you file your state taxes, the faster you would receive your return. If you are on the other end of the spectrum and owe state taxes, this will give you more time to prepare to pay. Please make sure that you file for tax extensions by visiting your state government’s website.