With the April 15 tax deadline less than three months away, here are answers to a few reader questions.
The Internal Revenue Service will begin accepting and processing federal tax returns on Feb. 12. But if you're ready before then, file electronically, says Eric Smith, an IRS spokesman. "Our e-file and Free File partners will hold any returns they receive and then transmit them to us on Feb. 12," he says. The average refund on federal income-tax returns last year was about $2,500.
Quite a lot has been going on:
How to Actually Pay Your Taxes | Personal Finance | dothaneagle.com
Depending on your situation, you have a few different options for submitting the money you owe to the IRS -- some of which are better than others.
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For most people, the best option is to arrange for a direct withdrawal of your payment amount from your bank account either with the software program you use to file or with the IRS directly.
Regardless of which method you choose, however, be prepared to include information such as the amount you owe, the reason you are making the payment, and your Social Security number or taxpayer ID number so your payment can be correctly processed.
IRS encourages early filing of 2020 tax returns
MONTGOMERY, Ala. (WSFA) -It's time to start thinking about your 2020 tax returns. While the IRS won't officially start processing them until Feb 12th, the government urges taxpayers to start gathering their documents now and get an early start.
"You can start doing them. If you use IRS free file, or if you use any software company," Alejandra Castro with IRS explained.
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"Taxpayers can go to irs.gov /freefile, and they'll find one of nine software companies and they'll choose which one they're eligible to use," Castro said. "Now, once that happens, the IRS the software companies will hold those tax returns until the official start, and then they'll push them to our systems. And we can go ahead and process them. "
I.R.S. Pushes Back Start of 2020 Tax Filing Season - The New York Times
The start of tax filing season is postponed by a couple of weeks this year, but the government says it expects to pay most refunds reasonably quickly.
Typically, the Internal Revenue Service begins accepting and processing individual income tax returns in late January. But the agency has pushed back the start of filing to Feb. 12 for returns for the tax year 2020.
The shift was needed, the I.R.S. said, to allow the agency to update and test its systems to reflect late-year tax changes approved by Congress, including a second round of economic stimulus payments.
Not to change the topic here:
IRS explains extended payroll tax due dates - Journal of Accountancy
The IRS has issued guidance ( Notice 2021-11 ) to address how employers who elected to defer certain employees' payroll taxes can withhold and pay the deferred taxes throughout 2021 instead of just the first four months of the year.
Notice 2020-65 gave employers the option to defer certain employees' Social Security taxes from Sept. 1, 2020, to Dec. 31, 2020. This applied to employees paid less than $4,000 every two weeks, or an equivalent amount for other pay periods, with each pay period considered separately. The employee portion of Social Security taxes (Old Age, Survivors, and Disability Insurance, or OASDI) are calculated at 6.2% of employees' wages (IRS News Release IR-2021-17 ).
Biden Wants to Raise Taxes, Yet Many Trump Tax Cuts Are Here to Stay - The New York Times
WASHINGTON — Donald J. Trump has left the White House. But many of his signature tax cuts aren't going anywhere.
Mr. Biden is now in the White House, and his party controls both chambers of Congress. Yet he and his aides are committing to only a partial rollback of the law, with their focus on provisions that help corporations and the very rich. It's a position that Mr. Biden held throughout the campaign, and that he clarified in the September debate by promising to only partly repeal a corporate rate cut.
What is the Child Tax Credit? And how much of it is refundable?
This absurd tax is the reason people are fleeing the Northeast
Last month, I got a notice in the mail from a debt collector. It was a personal property tax bill for my wife's car — from a different state, Connecticut, which we had left three years earlier.
In Connecticut, they charge you for the privilege of owning a car, and I apparently owed taxes from 2017 — which, 814 days after they were levied, I was finding out about for the first time.
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Then, it got worse. Explaining that we had moved out of the state three years ago, I sent the officials my records — including evidence that we'd dutifully canceled our Connecticut plates and licenses on the day we arrived in Florida. It didn't matter.
Happening on Twitter
Many families will be relying on a tax refund or stimulus check to help make ends meet. Here's what you need to rea… https://t.co/M1X79HqiYC MarketWatch (from New York, NY) Sat Jan 23 18:12:31 +0000 2021
Didn't receive an Economic Impact Payment? Check out the Recovery Rebate Credit before filing your #IRS tax return… https://t.co/bRov9woo1Q IRSnews (from Washington, D.C.) Wed Jan 20 17:30:38 +0000 2021
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