With all of the deadline changes, stimulus news, and rule amendments coming down the pipe, it’s extremely difficult to keep them all straight and your financial house in order. Especially if you took advantage of the IRS’ filing deadline extension. If you are one of those who took advantage of the deadline extension to July 15th, here are a few things to remember before you file.
The IRS is accepting amended returns electronically this summer
While you have been able to submit your normal return electronically for a few years now, historically, any amended returns would have to be sent through the mail. This year, if you have to make a change to your return, the IRS will be accepting amended returns electronically (Form 1040x). Keep in mind that if you have to amend returns for years prior to 2019, they will still have to be submitted on paper.
Different due dates for state returns
April 15th has come and gone. And while the federal deadline has been extended to July 15th, your state will very likely have different guidelines. Check this list to see when your state return is due.
Safe harbor for renewable energy
This year, the IRS and the Treasury Department are offering safe harbor for renewable energy tax credits. In notice 2020-41, they announced that they would be offering safe harbor to affected taxpayers in wake of the Coronavirus pandemic. This is available to people involved in renewable energy projects developing wind, biomass, geothermal, and solar power. For projects that began in 2016 and 2017, this adds an extra year to the, “Continuity Safe Harbor” per the IRS’ guidance. Lastly, this notice helps taxpayers by paying for 5% of the project costs.
The second round of stimulus checks under consideration
Although your stimulus check will not be counted towards income for your 2020 return, if you owe the IRS for 2019, it could be quite useful in cushioning that blow. The CARES Act was one of the most expansive, and expensive bills in modern history, but American’s are already eagerly awaiting the next relief bill. Especially to see if it might include another stimulus check. Legislators are now considering a new round of payments to American taxpayers. While it might take weeks for them to hammer out the details, and there is much discussion around the finer points, experts agree that the second round of payments now seems likely.
As with any tax season, the longer you procrastinate, the more stressful it could be when it comes time to file. So take the time to organize your files now. If you know you will be receiving a refund, why wait until the deadline. File as soon as possible and enter your direct deposit information to receive your refund a bit quicker. If you are confident that you will owe the IRS, now is the time to tuck away some of that money to save yourself a headache when the deadline comes around.