May 17 is the final day to file taxes in 2021. It is around a month later than it usually happens because of the stimulus check red tape. The deadline is almost here, and numerous Americans still have not filed.
Last Day to File Taxes
On March 17, the IRS declared that the deadline to both file and pay 2020 individual federal income taxes has been extended to the said date. According to IRS Commissioner Chuck Rettig, "This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities," reported Investopedia.
According to the Department of Revenue and Taxation, the income tax filing due date for individuals was initially April 15, 2021. An automatic extension was made. Therefore, taxpayers need not file any extra forms with the Department, reported PNC.
3 Options for Filing a Tax Extension in 2021:
Option 1: Pay all or a portion of your estimated income tax due. Note that the payment is for an extension through Direct Pay, the Electronic Federal Tax Payment System, or through a debit or credit card.
Option 2: File Form 4868 through electronic means by accessing IRS e-file through your tax software or handling it with a tax professional who uses e-file. Ensure that you have a copy of your tax return for 2019.
If you need to search for a tax software service to use, and you earn $72,000 or less, you may use the IRS Free File Online tool to search for the best free filing system. You will need to gather these information: any adjustments to your income, income statements (W2s or 1099s), dependent information, and your current filing status (single, married, filing jointly). If you earn over $72,000, you could use the Free File Fillable form.
Option 3: File a paper Form 4868. Then enclose the payment of your surmise of tax due. Ensure that it is postmarked on or prior to May 17.
If you filed for unemployment in 2020, President Joe Biden's American Rescue Plan forgives taxes on unemployment benefits for any individual earning less than $150,000 annually. A maximum of $10,200 in unemployment benefits will not be imposed taxes.
The IRS has already processed over 105 million tax returns. It has dissemminated over 77 million refunds. The average refund stands at $2,870.
Due to all the stimulus bills and late tax alterations by Congress, it has a number of accountants calling this the most uncommon tax season since. CPAs are handling a large amount of change.
Are You Still Not Ready to File Your Taxes?
If you still are not ready to file your return, you must request a tax-filing extension. Any individual could request one, and in a number of special situations, people could receive more time without requesting to.
Taxpayers could receive more time to file. This is through submitting a request for an automatic extension on IRS Form 4868. Thus, the move will extend the filing deadline until October 15, 2021.
