NEW JERSEY – The Internal Revenue Service (IRS) extended the deadline to file 2020 federal tax returns to Monday, May 17 to give individual filers, tax preparers and the IRS itself more time to sort through the many changes affecting one’s 2020 taxes from the latest Covid-19 relief package. New Jersey also extended the deadline to May 17 as well. Since today is the final day to file and pay taxes, here are some things to keep in mind:
May 17 is the final day to make 2020 contributions to any IRA, Roth IRA, Health Savings Account, Archer Medical Savings Account (Archer MSA), and Coverdell Education Savings Account (Coverdell ESA) you may have.
May 17 is also the final day to apply for filing extensions. Any money owed must be paid by today, but the filing deadline will be extended after submitting a request.
Refunds are expected to be issued within 21 calendar days after the IRS receives your return. The fastest way for you to receive yours is to file electronically and choose direct deposit, the IRS notes. However, due to the backlog of manual tax returns from the 2019 year, many economists expect minor delays when it comes to receiving tax returns.
Any stimulus payments received are non-taxable. Those who were unable to receive a stimulus check may be able to receive the money owed them via their federal tax return so long as they claim the refundable Recovery Rebate Credit, according to CNN Business.
Unemployment benefits are taxable. With the latest COVID-19 relief package signed into law by President Biden, households with modified gross income below $150,000 in 2019 will have the first $10,200 in unemployment benefits for each taxpayer in the household exempt from federal income tax.
Small business owners who received a tax-free, forgiven loan from the Paycheck Protection Program, will be able to write off business expenses paid for by the money received, CNN Business states.
The Families First Coronavirus Response Act created a new sick leave and family leave tax credit for eligible self-employed people.To find out who is eligible, visit the IRS website.