Tax filing is a bit more complicated this year.
The deadline for submitting any Individual Federal Tax Returns by 2020 has been extended to May 17, about a month later than the usual April deadline. The Treasury Department և Internal Revenue Service moved the date to give taxpayers, tax collectors և more time to the IRS to adapt to coronavirus outbreaks.
Most states are lagging behind in terms of extended federal terms, with some adopting even more generous enlargements.
But the IRS did not delay the payment of estimated taxes for the first quarter of this year, as it did last year when it postponed tax day due to the epidemic.
The first estimated tax deadline this year remains April 15. Some members of Congress have argued that the IRS should reconcile the deadlines, but it is unclear whether this will happen, with less than a week left on April 15.
“It’s just a mess,” said Mark Stewart, chairman of the CPA National Conference of Certified Public Accountants.
So it’s a good idea to double check the deadlines.
Here is what the IRS has to say about who should pay the estimated taxes.
Individuals, including sole proprietors and partners և S shareholders generally have to make estimated tax payments if they expect to owe $ 1,000 or more in tax when their refund is filed.
Corporations are usually required to pay tax accruals if they expect to owe $ 500 or more in taxes when their refund is filed.
The IRS continues to face epidemic challenges. Accountants are seeing “more delays” this year than usual, according to a March 25 online update from taxpayers ‘advocacy service, the Independent Office of Taxpayers’ Advocacy Services.
According to statistics provided by the agency, as of April 2, the amount of refunds processed by the IRS is about 10% less than the same period last year. But the start of this year’s tax season has been delayed to allow the agency to upgrade and test its systems to reflect tax changes approved by Congress late last year. According to the agency, the number of recycled returns during the comparable days of the season increased by about 3%.
The agency is “on track when you think this tax season started late,” IRS spokesman Eric Smith said in an email.
Last year, an outbreak due to an epidemic stopped the IRS from processing paper tax returns. This year, even with the late start of the tax season, the agency is still struggling with 2019. With the return of the banknotes, as well as the crushing of the 2020 return, the IRS ‘”resource” issues, the technology issues, the advocacy service said.
The attorney general’s office said the IRS also had to “manually check” a large number of discount loans that taxpayers could require to obtain the first or second round of federal incentive payments if they had not already received them.
In addition, the agency had to recalculate returnees who reported unemployment benefits last year. The final round of epidemic relief legislation, which became law on March 11, taxed the first $ 10,200 in unemployment benefits for many Americans. But some have already filed tax returns when the tax breaks became available, so they will probably be eligible for a refund from May.
On Wednesday, the IRS posted an update on its website, saying it was “building” about 16.5 million raw individual returns, including the 2 million they received by 2021.
Most people have a payroll tax deduction. If they overpay, they get a refund as a refund when they submit their refund. But those who do not automatically have taxes, including self-employed or employees who have two jobs և no tax withheld from two checks, usually have to pay taxes to the IRS four times a year.
Other non-deductible income includes alimony, interest, dividends, sales tax on shares or other investment taxes. Nearly 10 million folders paid their estimated taxes in 2018, the IRS said.
An earlier tax payment period makes the extension of tax returns less useful than it should have been for quarterly taxpayers, say tax experts. The amount of tax payable is usually calculated based on the tax return of the previous year,, the first part is usually paid when submitting the tax return.
So, if people have not yet completed their 2020 return, they will have to estimate what they will have to pay in 2021, and they may be subject to unfinished tax penalties next year if they pay too little during the year. (Penalty penalty is based on how much you owe և how much time you owe, according to TurboTax. The IRS.
Some people may not realize they have to make the first estimated payment before their 2020 return date, Stewart said.
“They hear that Tax Day is moving to May 17, so a lot of people will go to their maker on April 30,” Stewart said. “Unfortunately, the estimated payment for the first quarter is late.”
At the conference, other groups of tax experts urged the government to postpone the estimated tax period. In his testimony to the Congressional Committee in March, IRS Commissioner Charles Retig said the tax deadline had not been changed because it would essentially “cut off” interest rates for people rich in penalties who would invest instead of paying. Government:
Accountants say that the people who calculate the calculated taxes also include sole proprietors, employees in the concert economy.
Many people who lost their jobs in the epidemic went to work supplying food and ordering through mobile apps, said Melanie Lauridsen, senior manager of tax certification and advocacy for American Certified Public Accountants.
“That’s where the need is,” Lauridsen said.
The disconnection between the filing of tax “estimated tax deadlines” means that taxpayers are forced to make a return at the same time as the traditional deadline. “It puts a lot of stress on taxpayers,” said Ronda Collins, director of tax content and government relations with the National Association of Tax Specialists.
In general, taxpayers should evaluate their debt: and round it off to reduce underpayment. “I owe it to myself that this is a very high assessment,” Collins said.
If you file a tax return next year, you may be required to pay a deduction. The IRS is often mild in its first mistakes, especially when there are mitigating circumstances.
It could also set your income back in 2021, say tax experts. Because of the epidemic, many people had lower-than-normal incomes in 2020 և could see growth in 2021 if the epidemic decreased as expected և the economy expanded. If your income turns out to be higher than expected, you may need to increase your estimated payments by the end of the year.
Here are some questions and answers about this year’s tax deadlines.
H. When does the deadline for investing in individual pension accounts և health savings accounts expire?
Answer. You can make payments to the IRA և HSA for the 2020 tax year until the application extension deadline is May 17.
H. When are the 2021 tax payment deadlines set?
A. The first is April 15, followed by June 15, September 15 և January 18, 2022.
Question. How can I check the submission ներկայաց payment deadlines in my state?
Answer: It is wise to check the website of your state Revenue Office for details. You can find the link on the website of the Federation of Tax Administrators.