![]() ![]() If you fail to file, you could miss out on refund money and potentially accrue penalties and interest if you owe the IRS. Parents also need to file a 2020 tax return to make sure that the IRS has accurate information for them to claim the enhanced child tax credit, which is scheduled to begin monthly payments in July. The exemption is $20,400 for a couple with the same income. For the millions of Americans that lost work due to Covid, the first $10,200 of unemployment benefits is now exempt from federal taxes for those with income under $150,000. The American Rescue Plan also made some tax changes. This year there are other reasons why submitting information to the IRS is important, even for those who don't traditionally file.įor one, filing a return and claiming the recovery rebate credit is the only way to get any economic impact payment that you may be owed, or get a "topped up" amount if your circumstances changed – like if you had a baby in 2020 that was eligible for a stimulus check. "If they don't then that money is lost and it becomes a donation to the treasury," said Thompson. In April, the IRS said they still have $1.3 billion in unclaimed refunds from 2017. Taxpayers have three years to claim refunds from the IRS. While May 17 is the deadline for this year's taxes, it's also the date by which you must claim any refunds from 2017. You are entitled to get it back and should do so. government, basically an interest-free loan. It's important to remember that a refund isn't free money, according to Rebecca Thompson, director of the Taxpayer Opportunity Network at Prosperity Now, a nonprofit. This year especially, after the impact of the coronavirus pandemic, Americans should claim any money they're owed. That refund is often the largest windfall families receive throughout the entire year and can be helpful in paying down debt, boosting savings and more. So far, the agency has sent out more than 81 million tax refunds to Americans with an average check of $2,865. Through April 30, the IRS has received more than 121 million individual tax returns and processed more than 110 million. One of the most important reasons to file a tax return is to claim any refund you're owed by the IRS. ![]() More from Invest in You: You can still tap free money for college - here's how Biden proposal will make free school lunch available to 29 million children every summer Paycheck Protection Program has run out of money for most borrowers. "It's always important to file your taxes, it's your obligation," said Allison Koester, a former CPA and associate professor at Georgetown University's McDonough School of Business. Personal Loans for 670 Credit Score or LowerĮven with the additional time, many Americans procrastinate preparing and filing, an often-confusing task made more complicated by the health crisis and legislation passed in the middle of this year's filing season. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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