Here’s what you need to know on tax day if you have not yet submitted your statement
Here’s what you need to know on tax day if you have not yet submitted your statement

Here’s what you need to know on tax day if you have not yet submitted your statement

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It’s finally here: April 18, 2021, is the federal tax filing deadline for most Americans.

As of April 8, the IRS has had received more than 103 million returns and sent 70 million refunds, totaling over $ 222 billion. But it still leaves millions to be filed with limited time left.

Doug Campbell, a CPA and vice president of tax support at Liberty Tax, said there has been a “pretty big increase in returns” that started over the last few weeks.

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Just understand that you still need to come up with as accurate as possible an estimate of how much tax you can owe.

Doug Campbell

Vice President of Tax Assistance at Liberty Tax

But if you do not qualify for more time and are not ready, there is still time to file an extensionwhere you meet your due date by six months to October 17, Campbell explained.

You can submit an extension by submitting Form 4868 electronically with IRS free fileregardless of income, or by making a payment through the IRS Direct payment and to select “extension” as the cause.

By submitting an extension before April 18, you can avoid one for late sentencing at 5% of your unpaid balance per. month, limited to 25%. But it does not go around a monthly late payment fee of 0.5%, limited to 25% of tax due.

“You just have to understand that you still have to come up with as accurate a estimate as possible of how much tax you can owe,” Campbell said.

If you are unable to cover your estimated balance, you may qualify for one payment plan through the IRS. However, you must submit an extension or return to be eligible.

What to know before submitting

If you plan to submit your return, you can save money with IRS free file if your adjusted gross income is $ 73,000 or less for 2021, that is about 70% of taxpayers. And you can use Free filling out formsif your AGI exceeds $ 73,000.

You will probably receive your refund within 21 days by submitting an exact electronic return with direct deposit. But errors can send your return to what the IRS calls “troubleshooting,” which requires manual review, Campbell warned.

Your return should reflect any tax forms that the IRS receives, such as your W-2, investment income and more. You will also want to double-check IRS letters for details on stimulus checks and advances on child tax deductions.

“We urge extra attention to those who received a financial impact payment or a prior tax deduction for children last year,” IRS Commissioner Chuck Rettig said in a statement. “People should make sure they report the correct amount on their tax return to avoid delays.”

The Ministry of Taxation sent roughly an email 7.4 million “math error” messages for stimulus payment errors from January 1 to July 15, 2021, stopping repayments, and many are still waiting for a solution.

“Mistakes are a lot easier to come by if you confuse at the end of the game instead of having everything in line, ready to go,” Campbell added.

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