With so many “new normals” and changes happening this past year, one thing remains constant: Tax Season. If you haven’t filed your taxes yet as of posting, there’s no shame in that! This last-minute tax filing primer will hopefully help you get things sorted out before the deadline.
Tax Deadline Extension
Speaking of deadlines, if you’re not aware of it yet, this year’s tax deadline has been extended to May 17, 2021. This extension is due to the ongoing pandemic, and the seeming gazillion tax law changes that it brought about. A lot of states have followed this, but not every state has, so make sure to check yours if you haven’t filed your taxes yet.
Even if You Can’t Pay, FILE
One of the most important tips that I can give you is this: Even if you cannot pay what you owe, please FILE. This is one point that I cannot stress enough. The penalties for not filing your tax return can be HUGE.
On the other hand, the penalties for filing but not being able to pay are not that huge. Yes, they might accrue over time, but the amount is still nothing compared to the penalties for not filing. Also, keep in mind that there’s no statute of limitations if you failed to file. You can always work out a payment plan if you cannot make the tax payments now.
Understanding the 2020 Tax Changes
Here are some of the major tax changes that I discussed in the video above:
- Unemployment Benefits
- Recovery Rebate Credits
- Charitable Contributions
- Sick and Family Leave Credits
- Grants
Common Errors to Avoid
Some of these may seem very simple to you, but you would not believe the number of people who get tax return issues because of these common errors:
- Wrong Social Security Numbers
- Flipping the Order of Your Names
- Bad Account Numbers
- No Signature
- E-Filing PIN Errors
Watch the full video above to learn more about these points that I discussed. If you still have a lot of confusion when it comes to tax law changes, learning about the tax impacts of 2020 can also help greatly.