I Paid Taxes Before Filing for Extension Now Asks Me to Py Again
Filing for an extension gives taxpayers extra time, just there are some consequences to be aware of.
Sarah Tew/CNETThe IRS this twelvemonth has sent out nearly 52 million taxation refunds to people who've filed their2021 taxation returns. Just if you lot haven't filed your taxes yet, you've got only three weeks left to either submit your render or request an extension. However, if you choose to file an extension by the April 18 deadline, yous could be delaying thousands of dollars owed to you lot.
When you file your taxation return this year, more money could be tied to your refund than you know. Hither'southward what you could exist getting back: the rest of your enhancedchild tax credit money, reimbursement for child care expenses and more stimulus cheque money. Too, if you oasis't filed your 2018 taxes, April eighteen is the final twenty-four hour period to claim any money owed to yous from that year (more below).
Be aware that an extension doesn't postpone having to pay taxes that you lot owe, it just gives you lot extra time to file your return. We'll explicate below how to file a revenue enhancement extension and the money you could exist delaying if y'all exercise. Here'southward how to rails your IRS tax refund after you file.
How to file a taxation extension
If you lot're planning to file a tax extension this year, you'll need to submit Course 4868 (PDF) to the IRS either by paper or electronically using e-file before the April eighteen deadline. Note that you'll nevertheless take to pay all or part of your estimated income tax due using Direct Pay, the Electronic Federal Tax Payment Organisation, or using a debit orcredit menu, and note that yous're filing for an extension.
Some taxpayers are automatically granted more time to file. This includes armed forces personnel who are serving in a combat zone or persons in federally declared disaster areas.
Will an extension filibuster whatever taxes you owe to the IRS?
No. Extending your filing deadline doesn't delay when yous have to pay taxes that you may owe. According to the IRS, you lot demand to estimate and pay at least 90% of your taxation liability by the borderline to avert late fees. Otherwise, you will have accrued interest on what you owe, which you'll eventually have to pay -- plus possible penalties -- on top of your income taxes.
The late-payment penalty is usually 0.5% per month of the outstanding tax not paid by the filing deadline, maxing out at 25%. The IRS can also outcome a late-filing penalty of v% of the amount due for every month or partial calendar month your taxation return is belatedly. If your render is filed more than than threescore days later on the due date, the minimum tardily-filing penalisation is either $435 or 100% of the unpaid revenue enhancement (whichever is less).
For individual taxpayers, penalties and involvement will cease accruing but when your balance is paid in full. For more on penalties or to piece of work out a payment plan with the IRS, check out its web page.
How are stimulus payments tied to 2021 taxation returns?
If the IRS owes you money for the tertiary stimulus check due to a new qualifying dependent you lot gained in 2021, you can file for that payment through arecovery rebate credit when you file your taxes. You lot could get upwards to $ane,400 for your dependent -- that includes a new baby built-in or adopted. Keep an heart out for Letter 6475 from the IRS as it volition have all the details you demand nearly concluding year'due south stimulus bank check when you file.
As for the offset two stimulus checks, if you didn't receive either check or received less than you qualified for, yous could nevertheless exist eligible to claim the money through arecovery rebate credit. Yous'll either need to file a 2020 tax render if you haven't nevertheless, or amend your 2020 tax return if it'south already been processed.
At the end of 2021, the IRS nevertheless had some 6 meg unprocessed taxation returns to go through and advises you not to file a second render if your 2020 tax render still hasn't been processed however.
Between the child tax credit and kid care expenses, you could get a lot of coin back this year.
Sarah Tew/CNETHow is child tax credit money related to 2021 tax returns?
Six child taxation credit payments went out in 2021, and the remainder of the money will come with your tax refund this yr after you file your taxes. If you chose to opt out of those checks last twelvemonth, yous'll become the full amount owed to you.
However, if y'all had a new baby or gained a dependent any fourth dimension in 2021 that the IRS didn't know about, you could get even more than money dorsum. Or if your income inverse and you didn't update those details in theIRS Update Portal, you may be eligible to receive more money.
By not filing your taxes by the deadline, you could be missing out on up to $3,600 per child -- or up to $i,800 per child if you received all the child tax credit payments last year.
Are child care expenses included with revenue enhancement refunds this year?
The child care tax credit has been expanded for 2021 tax returns. The amount of coin yous can become back for expenses you paid for child or dependent intendance has increased significantly. That means y'all could potentially receive up to $eight,000 for one kid or upwards to $xvi,000 for two or more kids.
Here's what counts as an expense: day care, babysitters, transportation to and from care providers, day camp, and before- and after-school programs. The corporeality of coin y'all're eligible to get reimbursed for will be sent with your taxation refund.
File your 2018 taxes or lose out on that money entirely
The IRS on March 25 appear April 18 every bit the deadline to file taxes for 2018. Taxpayers who don't file past this date will miss out on any coin owed to them for that year and the money will automatically become the holding of the United states Treasury. The agency says you lot could lose out on not only your taxation refund coin, merely also whatsoever earned income tax credit owed to you lot.
The IRS also reminds taxpayers that if they haven't filed their 2019 or 2020 returns, their 2018 revenue enhancement refund cheque could be held. In addition, that money can also be used to outset unpaid kid support and past-due federal debts, or go towards any money owed to the IRS.
Scout this: Kid tax credit: Everything nosotros know
Volition your tax refund be late if you lot file an extension?
Yeah. The timeline for getting your income tax refund depends on when you file. And although you lot have until Oct. fifteen to submit your return if you file an extension, it doesn't mean yous accept to await that long to file.
The IRS is still experiencing delays due to the pandemic and has a backlog of unprocessed returns, then in some situations, information technology could have much longer than the boilerplate 21 days to issue refunds. Some refunds, especially for more complicated returns or those that need corrections, could take months to arrive.
The IRS is asking taxpayers to file electronically this year and to carefully review their details earlier submitting to avoid whatever errors that could potentially delay their refund. The bureau also asks that you sign up for direct deposit to get your money faster.
Ways to file your 2021 tax return
The IRS says that taxpayers can file and schedule their federal tax payments online, by phone or with the mobile IRS2Go app.
If you need to observe a taxation software service to apply, and you make $72,000 or less, you tin find an IRS-approved free filing service easily. You lot'll need to gather the following information: income statements (W2s or 1099s); whatsoever adjustments to your income; your electric current filing status (unmarried, married, filing jointly); and dependent information. If you make more than than $72,000, you tin can use the Gratis File Fillable Grade.
If you haven't already fabricated a tax payment, the IRS prefers that payments be made electronically, and offers a multifariousness of ways to practise and so, including IRS Direct Pay, which is directly linked to a checking or savings business relationship. Another option is by credit card using the mobile IRS2Go app, or through the Electronic Federal Tax Payment System.
How to review your IRS tax account online
An like shooting fish in a barrel style to review all your taxation-related details, including your address and payment program details, is to admission your IRS account online. According to the IRS, taxpayers can apply the information from their account if they need to access their adjusted gross income, find their stimulus payment and child tax credit amounts, or review their estimated taxation payments or credits. Accessing your tax transcript will give you lot all the records necessary if yous have a tax problem or a missing payment.
If you take any additional questions y'all can become visit the IRS' Interactive Revenue enhancement Banana to get help.
For more revenue enhancement data, here's an explainer on the difference betweena tax refund and a taxation return, and hither'southward why y'all might want tosign upward for directly eolith when you file your taxes.
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Source: https://www.cnet.com/personal-finance/tax-day-deadline-in-3-weeks-what-happens-if-you-file-a-tax-extension/
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