Hello Tax Day 2020. We've been waiting for you for such a long time.
In fact, a whole lot of folks have been waiting for July 15, according to research by from IPX 1031.
Ultimate tax procrastinators: It's not unusual for millions to wait to file. Last year, Internal Revenue Service data showed almost 18 million filed during the last week of that tax season. That procrastination delay remained and even increased after COVID-19 pandemic precautions pushed 2020's Tax Day into the summer.
IPX 1031's look at geo-targeted online search data showed that more than 22 million Americans have taken advantage of the coronavirus tax-filing extension. Most of the procrastinators, says IPX 1031, live out west. That includes my native Texas.
The top 10 states per the research and in order of the greatest number of late tax filers are California, Nevada, Texas, Colorado, Oregon, Washington, Hawaii, Georgia, Arizona and Maryland. The IPX 1031 search results include an interactive map so you can see where your state stands (and waits) at tax-filing time.
Hmmm. Texas and Maryland, the two states where I've lived most of my life are full of tax procrastinators. I admit it. I again contribute to the Lone Star State delay trend now that the hubby and I are back in our native Texas. We did the same when we were Old Line State residents.
Final Tax Day filing tips: If you're among that (our) tax procrastination group, here are five quick Tax Day 2020 tips to help you make it through these final filing hours.
1. File something. You need to send the IRS either your 2019 Form 1040 or Form 4868, which will give you until Oct. 15 to finish up your return.
If you file electronically, which the IRS recommends and is the option most taxpayers choose, you've got until midnight in your time zone to punch send on your computer keyboard. But it's better not to wait that long. A literal last-minute filing crunch could pose bandwidth problems. The last thing you want is a computer crash to make your filing late.
If you haven't looked into a software program and your adjusted gross income is $69,000 or less, regardless of your filing status, check out Free File. It is, as the name says, a no-cost way for eligible taxpayers to do and e-file their taxes.
As for all you old-school tax holdouts who still mail in a paper Form 1040, you need to get your tax material to your local Post Office or private delivery service office in plenty of time for your tax package to be marked as sent today. The IRS accepts a Tax Day postmark as proof of timely tax filing, meaning you won't get his with late-filing charges.
2. Pay any tax you owe. By now, everyone should know that while the IRS will automatically give you three more months to finish your tax paperwork, there's no delay in paying. You must send the IRS what you owe regardless of whether you file a 1040 or 4868 form. The IRS accepts a variety of tax payment methods.
Even if you can't pay it all, send the IRS some amount. That partial payment will let the tax agency know that you know you have a pending bill. It also will reduce the amount of money you owe, which also will lower the amount of late-payment penalties and interest you'll face. Then look into alternative ways to pay your taxes, such as getting an installment agreement.
3. File your state taxes, too. Most Americans live in states that collect some type of individual income tax. And most of those state tax departments are following the IRS' filing schedule. That means you must file and pay your state (and in some cases, local) taxes by today, too. Check with your state's tax office about possible extensions.
4. Pay your 2020 estimated taxes. Millions of filers get income that isn't subject to payroll tax withholding. This includes investment income and, in a growing number of cases, money earned from freelance or gig work. To avoid facing a big tax bill, not to mention potential penalties and interest, when you file your annual return, you need to pay tax on that money throughout the year by making estimated tax payments, either electronically or by sending in a Form 1040-ES voucher. These are due four times a year.
In 2020, however, the COVID-19 tax timetable pushed the first two 1040-ES deadlines, which usually are April 15 and June 15, to the new July 15 deadline. You can send these dual 1040-ES amounts as one payment today. Miss paying them and you could end up facing — you know the drill by now — late payment penalties and interest.
5. File your 2016 tax return. Yeah, I know the tax calendar is screwy this year, but you also need to check your tax records from three years ago. If you didn't file a return for the 2016 tax year and were due a refund, today is the last chance to do so and get your money. If you miss this deadline, Uncle Sam will get to keep your 2016 tax refund. And it's a lot of unclaimed old refund money.
The IRS is holding onto, at least for a few more hours, more than $1.5 billion in unclaimed 2016 refunds. The tax agency says there are around 1.4 million taxpayers across the United States who can claim this money, which comes to a median refund amount of $861.
If any of these tax situations apply to you, then get to work! I'm definitely not your mom and I don't want to be a nag (I have to save that energy for the hubby!), but this is it, so don't make your tax circumstances worse or more costly by missing today's deadline.
It's Tax Day 2020. Finally, and for real.
You also might find these items helpful in filing today:
- State tax deadlines mostly July 15, too
- Last-minute tax breaks and filing advice
- Monthly tax filing tips: January, February, March, April, May, June and — tah-dah! — July
| Coronavirus Caveat & More Information In 2020, we're all dealing with extraordinary circumstances, both in our daily lives and when it comes to our taxes. The COVID-19 pandemic and efforts to reduce its transmission and protect ourselves and our families means that, for the most part, we're focusing on just getting through these trying days. But life as we knew it before the coronavirus will return, along with our mundane tax matters. Here's hoping that happens soon! In the meantime, you can find more on the virus and its effects on our taxes by clicking Coronavirus (COVID-19) and Taxes. |
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