IRS tax deadkine + 3rd economic payment

          IRS tax deadline changes

 

The internal revenue service is pushing back the tax filing deadline by a month and income taxes and payments will now be due may 17 instead of april 15, the agency and treasury department announced Wednesday.

 

The news was first reported by bloomberg who said the deadline was expected to be in mid-may. The irs said it will provide "formal guidance in the coming days."

The delay comes as the irs is dealing with a massive backlog that has left it unable to fully process roughly 24 million tax filings from individuals and businesses since the 2019 tax year.

Taxpayers who file an extension would still have an oct. 15 deadline. The irs said the deadline change only applies to federal taxes and payments. State deadlines can vary and are not always the same as the federal filing deadline.

 The american institute of cpas (certified public accountants) was calling for extending the filing and payment deadline for the 2020 tax year until june 15. The irs previously extended the deadline to june 15 for texas, Oklahoma and Louisiana because of the winter storm.

 

"this continues to be a tough time for many people, and the irs wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities," irs commissioner chuck rettig said in a statement. "even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds."

3rd stimulus checks: 

What’s the maximum amount you can receive

Individuals will receive up to $1,400, while married couples who file jointly will get up to $2,800. Additionally, dependents will receive as much as $1,400. (The IRS automatically calculates the amounts issued.)

Unlike the first two payments, families will get the stimulus checks for all dependents claimed on their tax returns. That includes adult dependents, such as college students and older relatives. Previously, only children under the age of 17 qualified.

However, if you’re in debt, you might not see some — or even all — of that money. That’s because debt collectors can garnish funds from the stimulus checks, something consumers were previously protected against.

Who qualifies for stimulus checks

U.S. citizens or permanent residents are generally eligible for the full amount — provided they are not dependent on another taxpayer and have a valid Social Security number — if their adjusted gross incomes don’t exceed certain amounts. Those levels differ somewhat from the first two checks, so not everyone who qualified for those them will get the third one.

The eligibility amounts are as follows:

• $75,000 for individuals (including single tax filers or a married person filing separately)
• $112,500 for those filing as head of household
• $150,000 for married couples who file a joint return, or those filing as a qualifying widow or widower

Once that threshold is met, taxpayers may still be eligible to receive reduced amounts. But the stimulus checks phase out entirely for those whose adjusted gross income is over the following amounts:

• $80,000 for individuals
• $120,000 for those filing as head of household
• $160,000 for married couples filing jointly, or those filing as a qualifying widow or widower

Still unsure how much you’ll get? Try this stimulus check calculator.

How eligibility is determined

Most people, including those who received the first two rounds of stimulus checks, likely won’t need to take further action to get this latest economic impact payment, as eligibility is determined based on information already available to the IRS.

The third round of payments will be issued to eligible people who:

• Filed a 2020 tax return (the due date will be delayed until May 17 this year)
• Filed a 2019 tax return (if the 2020 return hasn’t been submitted or processed yet)
• Didn’t file a tax return for either of those years but registered for the first stimulus check using the special non-filers portal last year
• Are, as of Dec. 31, 2020, recipients of federal benefits who don’t usually file a tax return. This group includes people who received Social Security or Railroad Retirement Board benefits, Supplemental Security Income or veteran benefits in 2020. (More information for federal benefit recipients will be provided at a date to be determined as the IRS works with the various information to update information for this year. Further details will be released at IRS.gov.)