The new tax deadline is currently July 15, but there is a chance that the Internal Revenue Service (IRS) could push it back to October 15, or even later. Due to the coronavirus pandemic, the National Treasury Employees Union (NTEU) is strongly urging the government to extend the tax deadline an additional three months for the safety of its members. The growing unemployment rate is also a concern. With so many struggling financially, Congress may decide to push it back to give people who owe taxes more time to pay. For now, we’ll just have to wait and see what happens over the next few weeks.
4 Reasons to File Before the New Tax Deadline
If you haven’t filed your tax return this year, you may be wondering if it’s better to file now or closer to the tax deadline. Most tax experts would agree that filing early is best. Even if Congress does push the new tax deadline to later this fall, filing now has its advantages. Here are four reasons why you shouldn’t wait to file your taxes.
1. Stimulus Checks
Many Americans have already received their stimulus checks, but millions more are still waiting. One of the reasons for the delay is unfiled tax returns. The checks are issued based off of either your 2018 or 2019 tax return. If you haven’t filed either, and are required to file, you won’t see a stimulus check until that is rectified. Another potential problem could arise if you filed last year, but not this year. Some taxpayers are reporting smaller checks than anticipated because the IRS used the income information from their 2018 returns, which was higher than 2019. To ensure you get every penny you deserve, file as soon as possible.
2. Tax Refunds
Expecting a refund this year? Don’t leave your money wasting away in the government’s hands. File your taxes ASAP. The sooner you get your refund, the quicker it can start making money for you. It’s also a good idea to have it available, just in case something unexpected happens. Now, more than ever, an emergency savings fund is a must.
3. Unfiled Taxes
You might be surprised to learn that many people who have not filed their taxes could be due a refund. If you did not file, because you believed you made too little, you could be eligible to receive a refund of the federal taxes that were withheld by your employer. You may also qualify for the Earned Income Tax Credit. Typically, there is no penalty for filing late when you are due a refund. If you wait too long, however, you risk losing it. There is a three-year limitation on claiming a refund with the IRS, so don’t wait. Get those unfiled tax returns completed as soon as possible.
Thanks to COVID-19, tax fraud and identity theft are on the rise. And scammers, unfortunately, are honing in on the elderly. Idology, a digital identity verification company, recently reported that fraud against senior citizens has jumped a whopping 209% since the onset of the pandemic. To keep scammers from stealing your tax refund or stimulus check, file as soon as possible. If someone does try to submit a tax return under your name, it will be automatically rejected, if you beat them to the punch.
Tax Prep Help for Individuals and Small Business Owners
The IRS recently announced that it is adding 3,500 telephone representatives to help handle all the economic impact questions. Great news – if you’re waiting on a stimulus check. They did not, however, add more staff to help those who still need assistance with filing their returns. Most services still remain very limited.
If you need to file your individual or business taxes for this year, or previous years, give MoneySolver a call. We are open six days a week and available in all 50 states. Whether you owe taxes or expect a refund, our dedicated tax professionals are standing by to help. We offer affordable rates on tax preparation, as well as other tax relief services.