How to check status of COVID relief, tax refund
2020 taxes: Do you owe taxes on stimulus checks or unemployment?
Because of the coronavirus pandemic, 2020 may be a tax year like no other. Here are answers to some of your top questions.
USA TODAY
For those last-minute tax filers who were rushing to get their returns done, there’s good news: you’ve been given a one-month reprieve.
Tax Day 2021 has been pushed back to May 17 from April 15 without penalties and interest, giving Americans more time to file their returns as the IRS implements sweeping tax code changes from the latest COVID-19 relief package.
It’s a busy time. Many Americans have tons of questions about their stimulus checks, taxes and unemployment aid after the American Rescue Plan became law.
So far, 127 million stimulus checks have been sent to Americans this month in the first two batches of direct payments. Many people are rushing to get their returns done so they can qualify for the latest round of stimulus aid, and they have questions like: Is it best to file now? Can I still file my return to qualify for a stimulus check? Do homeless Americans qualify for checks?
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Taxpayers are also grappling with questions on everything from unemployment waivers to child tax credits. And others want to know when they need to pay their state taxes, or if they face refund delays.
Here’s what you need to know:
Why was Tax Day extended to May 17?
The IRS pushed back the tax filing deadline by a month to Monday, May 17 instead of Thursday, April 15. The agency is dealing with staffing issues and outdated IT systems at a time when it’s also implementing sweeping tax code changes from the COVID-19 relief packages.
Last year, the 2019 tax deadline was extended three months until July 15, 2020, without penalties and interest, because of the massive economic shutdowns that went into place to stem the spread of the coronavirus.
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My stimulus check was mailed. How can I track my stimulus check?
You can use the IRS “Get My Payment” tool to find out when your next stimulus payment is expected to hit your bank account or be mailed.
The third round of Economic Impact Payments will be based on a taxpayer’s latest processed tax return from either 2020 or 2019. That includes anyone who used the IRS non-filers tool last year, or submitted a special simplified tax return.
Before you start entering your information hourly, the IRS says the tool “updates once per day, usually overnight” and that people should not call the IRS. “Our phone assistors don’t have information beyond what’s available on IRS.gov,” the agency says.
— Kelly Tyko
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Do I still have a shot at qualifying for a check if I file now?
The situation is still very fluid.
If you didn’t qualify for the third round of stimulus checks based on 2019, but you do qualify based on 2020, the next best step is to file your 2020 taxes as soon as possible, tax experts say.
“If the IRS processes it in time, they’ll use the most recent year to qualify taxpayers for the third round of economic stimulus payments,” says Meredith Tucker, tax principal at Kaufman Rossin, one of the largest CPA and advisory firms in the U.S. “But, if you are passed over for round three because your 2020 tax return hasn’t been submitted or processed in time, then you should be able to claim a credit on your 2021 taxes.”
Mark Steber, chief tax information officer at Jackson Hewitt, agrees.
“Filing a tax return early is always a best practice and proven this year with the stimulus checks to those who have already filed,” says Steber. “As to filing now and still getting a check, the IRS has not detailed timing and impact, but it is certainly possible, especially if…
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