SAN ANTONIO — Tax Day is usually a distance memory by now, but the new July 15 deadline is just a day away.
“It’s been a crazy year in terms of all the events that have happened," said Jose Garcia, a CPA with Mission Tax Financial. “It’s been intense.”
If an extra three months was not enough time to file, don't worry. You can still get an extension.
“Whoever needs more time to prepare their tax return, gather all the information, they can apply for an extension. That will extend the tax return deadline to October 15th, this year, 2020,” said Garcia.
Use Form 4868 to apply for an extension. Yet, there is no delay on the money you owe.
“Let me make that clear,” said Garcia. "Extending the tax return deadline does not extend the deadline for that payment. Even though that the deadline for the tax return will be Oct. 15, the taxpayer needs to make sure to send the payment to the IRS by July 15,” said Garcia.
There is 5 percent per month charge with a maximum penalty of 25 percent if you do not pay by July 15.
Estimate what you owe and send that money to the Internal Revenue Service (IRS). You still can get your stimulus payment if you have not filed, but you need to file to receive it. You are not done, yet. Starting thinking about next year’s taxes now, especially if you had a change in employment.
“They need to know that if they are receiving unemployment benefits, that benefit is taxable income,” said Garcia. “So they will need to pay taxes on that income they receive. So just make sure you withhold or have the Texas Workforce Commission withhold the appropriate tax whenever you are receiving the benefits.”
Save your documentation if you get coronavirus, too. If you are self-employed, it will help you recoup income you lost during your illness or quarantine on your tax return next year.
“There will be a credit for the self-employed related to COVID-19,” said Garcia. “That will be calculated based on the profit they received. “
Documentation includes paperwork stating your positive test results. While the tax deadline was delayed, you should not delay filing any longer.
You can file electronically or use a paper return. Filing electronically processes your return more quickly and allows for you to get a refund sooner. The IRS is experiencing delays processing paper returns because of limited staffing because of the pandemic. If you file a paper return, it will be processed in the order it is received.
There are options if you are unable to pay because of the coronavirus crisis. The IRS offers an installment plan to allow you to pay over an extended period.
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