The tax yr 2020 last tax extension submitting deadline was October fifteenth, and whereas a few of you’ll have scrambled to make the tax deadline, a couple of of you’ll have missed it and are questioning what to do. For those who did miss the tax submitting extension deadline, learn up on these 5 essential questions and solutions that can assist you determine what to do subsequent.
I missed the tax deadline. Ought to I nonetheless file?
Sure, you must nonetheless file your taxes as quickly as doable. Even when your revenue was beneath the Inside Income Service (IRS) submitting requirement of $12,400 single and $24,800 married submitting collectively for 2020, you must nonetheless file your taxes for those who had federal taxes taken out or are eligible for a refundable tax credit score just like the Earned Earnings Tax Credit score since you’ll have a refund coming. Yearly the IRS stories that they’ve near $1 billion in unclaimed refunds.
How ought to I file my taxes?
IRS e-file is now closed, however you possibly can nonetheless file your taxes by downloading TurboTax software program and printing and mailing in your tax return. For those who began your 2020 tax return with TurboTax, you could have till October 29 at 9 pm PST to file your tax return on-line.
Will the IRS cost penalties for not submitting by October fifteenth?
When you have a tax refund coming, there isn’t any penalty for submitting late. Penalties are calculated based mostly on quantities due. For those who file after the October 15 prolonged tax deadline and also you owe, you can be topic to late submitting charges.
If I owe cash, will I be charged penalties and curiosity?
Sadly, you might obtain three separate penalties on balances due on late tax returns as follows:
- Failure-to-file penalty
- Failure-to-pay penalty
The failure-to-file penalty could be the steepest because it begins out at 5% for every month the tax return is just not filed and may go as much as a complete penalty of 25% of your stability due. If each the 5% failure-to-file penalty and the 0.5% failure-to-pay penalty apply in the identical month, the utmost penalty you’ll pay for each is the 5% failure-to-file penalty.
Even for those who owe cash and may’t pay your taxes, you must nonetheless file to eradicate this penalty. As well as, you might be eligible for different fee plans and choices like an installment settlement.
If I’ve a hardship, will I nonetheless need to pay penalties?
Sadly, you’ll have skilled hardship this yr with every little thing happening. For those who present the IRS cheap trigger for not submitting on time, you might not need to pay penalties.
Moreover, for those who have been a sufferer of a federally declared pure catastrophe, the IRS may supply reduction within the type of extensions to make a tax fee or file your taxes in lots of circumstances. The IRS just lately introduced additional prolonged tax deadlines for victims of Hurricane Ida. You’ll want to verify the IRS website for extra info.
Hopefully, this places your thoughts relaxed and strikes you nearer to submitting your taxes. Simply since you didn’t make the tax deadline doesn’t imply you must overlook about submitting altogether. Who is aware of, you might even be lacking out on a tax refund.
TurboTax Has You Coated
Don’t fear about figuring out these tax guidelines. TurboTax will ask easy questions on you and provide the tax deductions and credit you’re eligible for based mostly in your solutions. When you have questions, you possibly can join stay by way of a one-way video to a TurboTax Dwell tax knowledgeable with a median of 12 years expertise to get your tax questions answered. TurboTax Live consultants can be found in English and Spanish and may assessment, signal, and file your tax return or you possibly can totally hand your taxes over to them from the consolation of your property.
TurboTaxLisa (195 Posts)
Lisa Lewis is a CPA and the TurboTax Weblog Editor. Lisa has 15 years of expertise in tax preparation. Her success is attributed to having the ability to interpret tax legal guidelines and assist shoppers higher perceive them. Lisa additionally has been a TurboTax product consumer for a few years and understands how the software program program works. Along with intensive tax expertise, Lisa additionally has a really well-rounded skilled background. She has held positions as a public auditor, controller, and operations supervisor. Previous to changing into the TurboTax Weblog Editor, she was a Technical Author for the TurboTax Client Group and labored on a undertaking to put in writing new FAQs to assist prospects higher perceive tax legal guidelines. She may be seen serving to TurboTax prospects with tax questions throughout Lifeline. For Lisa, getting well timed and correct info out to prospects to assist them is paramount.