Don’t Miss the Deadline for Your Tax Refund (and Unclaimed Incentive Money)
If you haven’t filed your 2020 tax return yet, now is the time. At this point, most renewals will expire on 15 October and interest and interest will begin to accrue. Worse, if you don’t apply, you will lose the one-time payment of the child tax credit and the first two incentive payments. Even if you don’t make enough money to claim your tax return, it’s not too late to get that money.
The extended tax return deadline for 2020 is October 15th.
If you have already requested an extension after the initial tax date of May 17, you must file your tax return by October 15. After that date, fees and interest will be charged on money owed by the IRS. (And if you didn’t apply for the extension and don’t owe money, you will already be fined). However, some people may file tax returns later, such as military personnel in a war zone or affected by a natural disaster (including victims of Hurricane Ida – more information can be found here ).
Why You Need To File Your 2020 Tax Return To Claim Money
The 2020 tax return is required for one-time refundable COVID-related tax credits, which means they are paid in cash if they exceed the amount you owe the IRS for that tax year. The first two checks – $ 1200 and $ 600 – cannot be used by the IRS to pay taxes , although they can be used to pay late child support . The Child Tax Credit also offers a $ 3,600 per child loan for most families. However, if you do not normally file your tax return due to low income (less than $ 12,200 for individual applicants), these loans will go unclaimed.
How You Can Still Claim Money for a Promotional Check
At the moment, the only way to claim the first two incentive payments of $ 1200 and $ 600 is to request the amount as a “reimbursement” credit on your tax return (the third payment will be calculated automatically using your 2020 tax return, but you can also use ( see this portal if you are not planning to file your 2020 tax return). While the IRS is encouraging people to file now, technically you can file your return within three years from the date it should have been returned (including extensions) in order to receive this return.
Additionally, if the IRS has calculated your third incentive payment using your 2019 tax return, you may qualify for the extra money as an “ additional payment ” if the IRS recalculates your total based on your 2020 tax return. Otherwise, if you do not file your 2020 tax return, you will be stuck with the amount derived from your 2019 tax return.
How you can still qualify for child support
The 2021 Child Tax Credit pays a maximum of $ 2,000 to $ 3,600 per child (although the amount depends on your income), with half of that amount going to be sent as advance payments on the 15th of every month until the end of the year (for more information on eligibility, see of this Lifehacker post ).
The IRS says it’s not too late to receive the last two monthly advance payments if you submit your 2020 tax information now. You can do this either by filing your tax return electronically or with this non- filing tool designed for low-income people who don’t normally file a tax return.
Again, since this loan will be based on your 2019 tax return, if you haven’t filed a 2020 return, you may be wasting money if your income changes or if you added a new dependent from 2019.
To file your tax return , consider using the free IRS file if your annual gross income is less than $ 72,000. Plus, you won’t be penalized for being late if you don’t owe the IRS – a win-win if you still haven’t claimed tax credits.