You may miss out on IRS money if you miss this October 15 tax deadline

Filing an extension gives taxpayers additional time, but there are some consequences to be aware of.

Even though Tax Day was extended to May 17 this year, millions of taxpayers still had to rush to file their 2020 tax returns. Some requested an extension for more time to gather their records or get professional advice, or even to avoid potential mistakes. But that latest tax extension deadline is now approaching. And if you miss the October 15 filing date, you’ll have to pay late fees or more interest.

More importantly, if you haven’t filed your 2020 tax return yet, you could miss the money from the IRS, such as tax refunds, stimulus checks, or child tax credit payments. If you wait too long to file and claim a refund, the IRS says you could risk losing it altogether.

Remember that an extension does not delay paying the taxes you owe, it just gives you more time to file your return. The IRS still offers several e-filing options, including a free file for people whose income does not exceed $72,000.

We’ll explain below how to find out if the deadline applies to you, who has more time to file, and what happens if you miss the October deadline. Here’s how to track your IRS tax refund and what to know about 2020 unemployment benefit refunds.

Am I entitled to a tax extension?

The IRS will have granted a filing extension if you filed Form 4868 (PDF) on paper or electronically using an electronic file before the May 17 filing deadline. You should have paid all or part of your estimated income tax due using Direct Pay, the electronic federal tax payment system, or using a debit or credit card, and note that you were requesting an extension.

Some taxpayers are automatically granted more time to file their returns. This includes military personnel serving in a combat zone or people in federally declared disaster areas.

How do I file my 2020 tax return today?

The IRS says taxpayers can file and schedule their federal tax payments online, over the phone, or with the IRS2Go mobile app.

If you need to find a tax software service to use and you make $72,000 or less, you can easily find an IRS-approved free filing service. You will need to gather the following information: tax returns (W2s or 1099s); any adjustments to your earnings; your current filing status (single, married, joint filing); and dependent information. If you earn more than $72,000, you can use the fillable form for free.

If you haven’t made a tax payment yet, the IRS prefers payments to be made electronically and offers a variety of ways to do so, including IRS Direct Pay, which is linked directly to a checking or bank account. ‘saving. Another option is by credit card using the IRS2Go mobile app or through the Federal Tax Electronic Payment System.

Did the extension request defer amounts owing to the IRS?

No. Extending your filing deadline to October did not delay when you had to pay any taxes you might owe. According to the IRS, you had to estimate and pay at least 90% of your tax owing by May 17 to avoid late fees. Otherwise, you will have accrued interest on what you owe, which you will eventually have to pay – plus any penalties – on top of your income taxes.

The late penalty is generally 0.5% per month of unpaid tax not paid by the filing deadline, with a maximum of 25%. The IRS may also assess a late-filing penalty of 5% of the amount owing for each month or partial month of your tax return that is late. If your return is filed more than 60 days after the due date, the minimum late-filing penalty is $435 or 100% of the unpaid tax (whichever is lower).

For individual taxpayers, penalties and interest will not stop running until your balance is fully paid. To learn more about penalties or to work out a payment plan with the IRS, see their webpage.

What does my 2020 tax return have to do with stimulus payments?

If the IRS owes you money on the first two stimulus checks — maybe you didn’t receive any checks or received less than you qualify for — you can claim the missing payments through credit from clawback on your 2020 tax form. This applies even if you are generally not required to file taxes. So the longer you wait to deposit, the longer it will take to get your missing stimulus payment.

The IRS says it will automatically assess your eligibility for the third stimulus check when your 2020 return is processed. If the IRS calculated the amount of your third stimulus payment using your 2019 tax return, you may be entitled to more money as a “grossed up payment” once the IRS receives 2020 taxes and recalculated your total. However, until you file a 2020 tax return, the IRS will not have your new income or dependent information on file.

The IRS plans to issue eligible taxpayers third stimulus payments and additional payments through the end of 2021.

What does my 2020 tax return have to do with child tax credit money?

The IRS will use your 2020 tax return to determine how much money you are entitled to under the Child Tax Credit enhancement this year. Advance monthly payments began in July and will continue through December. If you waited until much later to file your 2020 tax return, the IRS will have used your 2019 tax return to calculate your initial payments.

If your income has changed or you have added a new dependent since this old return was processed, you may receive less money than you are entitled to this year. Here’s everything you need to know about the IRS Update Portal, which lets you opt-out of early payments and update your household information.

If you haven’t filed your 2019 or 2020 tax return and you don’t plan to, you may still be eligible for the 2021 child tax credit. You will need to register on the non-filers portal of the IRS before October 15.

Will my refund be late due to a tax extension?

The time frame for getting your income tax refund — or your refund plus overdue stimulus money — depends on when you file. Although you have until October 15 to file your return if you filed an extension, that doesn’t mean you have to wait that long to file.

The IRS is experiencing delays and has a massive backlog of unprocessed returns due to the pandemic, so in some situations, it could take much longer than the 21-day average to issue refunds. Some refunds, especially for more complicated returns or those that require corrections, take up to 120 days.

How can I view my tax account online?

An easy way to view all of your tax details, including your address and payment plan details, is to access your IRS account online. According to the IRS, taxpayers can use their account information if they need to access their adjusted gross income, find their stimulus payment amounts, or review their estimated payments or tax credits. Access to your tax statement will give you all the necessary documents if you have a tax problem or a missing payment.

If you have additional questions, you can visit the IRS Interactive Tax Wizard for assistance.

For more tax information, here’s an explainer of the difference between a tax refund and a tax return, and here’s why you might want to sign up for direct deposit when you file your taxes.

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