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Due to the coronavirus outbreak, The IRS delayed Tax Day 2020 from its original April deadline. With Wednesday's deadline looming, taxpayers are scrabbling for answers on how to file their 2019 taxes.
According to the IRS' official website, The Treasury Department and agency will be dispensing payment relief to individuals and businesses following the pandemic. If a taxpayer isn't able to meet the July 15th deadline, the individual might still be eligible to request an extension on filing their taxes—but don't even think about missing out on the extended deadline.
If you're thinking about not filing last year's taxes because you can't afford to pay, Kenesha Coleman, the founder and owner of ColemanTax, issued a warning recently to Forbes. She said, "Even though it won't feel good to see that you may owe a huge amount in taxes that you can't pay, it is better to know and do something about it, than to not do anything at all," she says.
"Not taking care of your tax responsibilities will only make your situation worse because you will be assessed penalties and interest on top of the tax you owe," Coleman added.
Taxpayers have until the end of Wednesday to file their taxes. Still have a nagging question about tomorrow's deadline? Here's everything you need to know:
Need An Extension?
Taxpayers that need more time can electronically file for an extension for free. In order to receive the automatic extension, fill out File Form 4868.
Trouble Paying?
If an individual is unable to pay their tax bill, the person can request a monthly payment plan and fill out Form 9465.
Stimulus Checks
The first round of stimulus checks had provided about $1,200 for most people. If you received a stimulus check, does that mean you have to pay taxes on them? According to WPXI, the money received from that check isn't taxable for 2019 and 2020. The money from the stimulus checks was a tax credit for 2020.
Paper Tax Returns
If you were hoping for your tax returns to arrive on paper, expect delays in the process. Due to limited staffing, the IRS will continue to process the paper tax returns, but at a slower rate.
Refunds
If you happen to be owed money, expect to be patiently waiting for that refund. Taxpayers who have their Social Security numbers memorized can check up on the status of their tax refund through the IRS2Go app.
Filing Online
According to CNN, the revenue service recommends people file their taxes electronically and choose the direct deposit option for their refund. The IRS has issued four electronic options for taxpayers and listed the available software to help with their filing. If you're exploring tax software options, you might want to look into TurboTax, H&R Block and TaxSlayer.
Penalty
Those who do not file this year's taxes will have a penalty of up to $300. The penalty fee will increase to $330 next year, per C/Net.
State Taxes
According to U.S. News and World Report, Wednesday is also the deadline for state taxes in several states. Iowa though pushed its deadline to file state taxes until the end of the month. Idaho's deadline for state taxes expired last month.
Beware Of Tax Scams
The IRS will never contact any taxpayer via texts, phone calls or emails. If someone does initiate contact and claims to be from the IRS, do not provide any personal information, such as your Social Security number.
