The final day to file taxes is May 17. What you need to know before Tax Day

The final day to file taxes is May 17. What you need to know before Tax Day

The IRS’s new tax deadline is now just one week away. If you have yet to get your taxes filed, you may want to consider filing for a tax extension if you think you’ll miss the due date. But do keep in mind that this tax season stimulus check payments and adjusted gross income are related: If you were eligible for a “plus-up” payment on your third stimulus check, you could see that additional money with your tax refund.

If you don’t plan to file — or you just haven’t done so yet — you could be missing out on extra cash in your pocket. We’ll explain why filing your tax return is important and how moving it back could affect you. Your tax information is also essential in determining how much you’ll get with the new child tax credit — to find out how much you qualify for, use CNET’s child tax calculator. It’s also easier to file now than to retroactively claim child tax credit money or missing stimulus check money by having to file a payment trace in the future.

If you did file your 2020 tax return but you’re still waiting on your refund, we’ll tell you how to track it here. You might also want to know why that letter from the IRS on your third stimulus payment is important, how your tax return could give you up to $50,000 in credits and benefits and how your state might owe you hundreds of dollars. This story is updated regularly.

 Why are taxes this year connected to stimulus plus-up payments?

The IRS is looking at your 2020 federal taxes to determine if it underestimated the amount of money you received with the third stimulus check. If the IRS based your payment on your 2019 tax return but your 2020 federal tax return shows you qualify for more money for that third payment, the IRS will send you the difference as a separate plus-up payment.

How does the May 17 tax due date affect my stimulus check?

The IRS uses information on your 2020 tax return, if it has it, to determine the amount you’d get in your third stimulus check. Specifically, the IRS looks at the AGI, or adjusted gross income, on your 2020 form to help figure out your payment by using a new stimulus check formula.

But the tax agency will use your 2019 return if your 2020 taxes haven’t been accepted by the time your payment is sent. That could work in your favor if your income from 2019 was lower than your income from 2020 (you won’t have to return the money in most cases).

However, if your 2020 tax return would bring you a larger third stimulus check, like if you have more dependents, you’ll want to file as soon as possible, so the IRS processes your 2020 taxes before releasing your third stimulus check. Here’s what people who don’t normally file taxes should know…Read more>>

Source:-cnet

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