One word to describe the 2020 tax season would be unpredictable.
Due to the COVID-19 pandemic, taxpayers were allowed extra time to file their 2019 tax returns. This meant more time to spend with your loved ones during this time and a less stressful tax season with an extra month to file.
Luckily, the IRS gave taxpayers tax relief for filing and payments. With tax day already gone, you have until October to e-file.
Continue to keep reading on how to file your 2019 taxes.
Important dates to remember
- July 15, 2020:
The last day to file and pay your 2019 taxes without accumulating tax penalties.
It is also the last day to file for a tax extension.
The final day to postmark your 2016 tax refund.
- October 15, 2020:
The last day to file extensions and to electronically file your tax return to the IRS.
Am I subject to penalties?
You are not subject to penalties if you have a tax refund. However, you must file within the three-year statute of limitations to claim your refund. This means you must file by April 15, 2023.
If you owe taxes to the IRS and you file and pay after the July 15 deadline, you are subject to the failure-to-pay and failure-to-file penalty. The failure-to-file penalty is 5% of your unpaid tax per month for up to 5 months. The failure-to-pay penalty is 0.5% of your unpaid tax not paid by the due date per month.
Gather ALL of your income statements
First off, the IRS requires you to report every income statement on your tax return. This will prevent your tax return from being delayed, possible penalties, and this way, you can avoid amending your taxes.
Avoid delays by checking this information
You should always double-check your spouse, dependent, and your own tax information such as social security numbers, accurate names, and date of birth when filing.
Additionally, many taxpayers forget to report their insurance statements. If you purchased health insurance through the Marketplace, you need to report your 1095-A statement to include the Premium Tax Credit (Form 8962).
Otherwise, it will delay your tax return. If you did not report your insurance correctly and it is accepted by the IRS, you will need to provide the IRS with the accurate forms.
Choose direct deposit
When electronically filing your tax return, it’s recommended to choose the direct deposit method. That way, you can receive your tax refund within three weeks. Otherwise, if you paper-file you will have to wait up to six to eight weeks for your refund.
However, once the e-file tax deadline has passed (after October 15), you will be issued a paper check instead.
Why your refund or tax return is delayed
The reasons why your tax refund may be delayed is due to unpaid back taxes, unfiled tax returns, child support, or mainly due to the backlogs of tax refunds the IRS is handling due to COVID-19.
Additionally, you may encounter errors with electronically filing if you used the Non-filers tool to track your COVID-19 stimulus payment. By using this tool, you essentially filed your tax return. Many taxpayers do not realize this.
This means that you cannot e-file your tax return, since it will be rejected by the IRS electronically since it was already e-filed. You must now file an amended paper return to the IRS to correctly file your tax return.
Here’s how to file your 2019 taxes
Many taxpayers may be at a loss on where to begin when filing their tax returns. With us, you simply have to create an account, enter your tax information, and submit your account to us for e-file.
Your refund or tax due amount will be automatically calculated as you enter your tax information.
Check out our pricing by clicking here. Our tax experts are here to help every step of the way if you have any questions on how to file your 2019 taxes.