Those who haven't filed their 2020 tax returns yet may be missing out on money such as a tax refund, stimulus checks, or payments for the child tax credit. The IRS warns that waiting too long to file and claim a refund could result in the payment being lost entirely.
Despite the fact that tax day was postponed until May 17, millions of taxpayers had to rush to file their 2020 tax returns. Many people requested an extension in order to compile their records, seek professional guidance, or avoid making mistakes. However, the deadline for filing a tax extension is now less than a month away.
If you miss the Oct. 15 deadline, you may be charged late fees or interest. Remember that an extension does not offer you more time to file your return; it only provides you more time to pay any taxes you owe. The IRS continues to offer many electronic filing options, including a free file for those with an income of $72,000 or less.
If you filed Form 4868 on paper or electronically using e-file before the May 17 deadline, the IRS will have granted you a filing extension. You'll have had to pay all or part of your estimated income tax due via Direct Pay, the Electronic Federal Tax Payment System, or a debit or credit card, while also indicating that you were filing for an extension.
Some taxpayers are given an automatic extension of time to file. This includes military personnel serving in a combat zone and people living in disaster zones declared by the federal government.
If the IRS owes you money from the first two stimulus checks - perhaps you didn't receive either or just received a portion of what you were eligible for - you can claim the missing funds through a recovery rebate credit on your 2020 tax return. This is true even if you aren't compelled to file taxes on a regular basis. As a result, the longer you delay to file, the longer it will take for you to receive your overdue stimulus payment.
When your 2020 tax return is processed, the IRS says it will automatically assess your eligibility for the third stimulus check. If the IRS used your 2019 tax return to calculate the amount of your third stimulus payment, you may be eligible for a "plus-up payment" once the IRS receives your 2020 taxes and recalculates your total.
However, the IRS will not have your new income or dependant information on file until you file a 2020 tax return.
The IRS intends to send out third stimulus payments and plus-up payments to eligible taxpayers through the end of 2021.
If you have any further questions, you can seek assistance from the IRS' Interactive Tax Assistant.
