The coronavirus outbreak has upended many routines, and that includes Tax Day, that was moved from April 15 to July 15.
This means that you have a month to file and pay your taxes if you haven’t done so yet. Read on to discover some tips and guidelines you should keep in mind before filing and paying your taxes.
Tips to Keep in Mind
If you owe taxes, you should file before July 15 to know the amount you owe. On the other hand, if you are owed a refund, you should file electronically as soon as possible. This way you will get your refund in about 21 days, while people who file a paper tax return have to wait six weeks or longer.
Paying your taxes electronically is a safe, fast option that also allows you to comply with social distancing protocols. There are many options to pay your taxes electronically, including credit card, debit card, and the Electronic Federal Tax Payment System, among others.
When it comes to refunds for past years, July 15 is also the deadline to claim refunds for 2016 tax returns. This is because you have a three-year window of opportunity to claim a refund.
Requesting an Extension to File Your Taxes
If you need more time to file your taxes, you can request an extension. However, keep in mind that an extension to file is not an extension to pay, so you still have to estimate and pay your taxes before July 15. There are two ways to request a filing extension:
- Filing Form 4868 with the help of your tax professional or tax software.
- Making an electronic payment and selecting Form 4868 or extension as type of pay.
Get Help From the Experts
The IRS’ response to COVID-19 changes constantly, so it’s important to stay updated. You can check the IRS website or this blog. It’s also a good idea to get advice from an expert who can help you get advantage of the relief initiatives unrolled by the government.
At Meadville Tax Services we have the know-how and the drive to assist you so you can file your taxes efficiently, limiting your tax liability while staying compliant with federal tax regulations.