It’s April 14. If you have not done your taxes, you might be in panic mode. However, the federal government has extended the tax due date this year, as it did last year. 2020 tax returns are due on May 17. So, you have 32 days until it’s time to panic. But, don’t!
Don’t panic and don’t procrastinate. Do yourself a favor and block out some time in this weekend to file your tax return. When you do, here are a few things to keep in mind.
- The IRS has extended the deadline for making IRA and health savings account contributions for 2020 until May 17. Many states have also extended their deadlines. Be sure to check your state’s tax web site to verify their deadline.
- Covid-19, or economic impact, relief payments to families are not taxable, so don’t include them in your income.
- If you did not receive the full economic impact payments, you can claim the Economic Rebate Credit on your taxes. Your refund or amount due will be adjusted by the amount of the credit.
- The sooner you file, the sooner you will receive your refund.
- If you will owe taxes, it is better to know that now, so that you can make a plan to have the money by May 17.
- You can file your return now and schedule any payment to be deducted from your bank account on May 17. Be sure to deduct the payment from your account register now, so you won’t accidentally spend the money.
- If you earned less than $72,000, you may be able to file your taxes for free: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
- Filing your taxes now will relieve you of the burden of knowing your still have to file your taxes. Do your taxes, and then get outside and enjoy some beautiful spring weather.
“Anxiety in the heart of man causes depression, but a good word makes it glad.” Proverbs 12:25
Susan's Reflections 