GREENSBORO, N.C. — Tax Day is May 17! The IRS extended the deadline once, it won't be extended again for the mainstream taxpayer. But that doesn't mean you can't file for an extension. Just remember, an extension to file is not an extension to pay. You will still need to pay your estimated taxes by May 17.
#1 FILE ONLINE
Online is the easiest and fastest way to get a refund. The IRS website says:
Timely processing of tax returns and refund issuance is especially important during the pandemic. To speed refunds and avoid delays in processing, the IRS strongly advises taxpayers to file electronically with direct deposit.
#2 UNEMPLOYMENT BENEFITS ARE TAXABLE
If you got unemployment benefits in 2020, that is taxable income, but you're getting a break thanks to the American Rescue Plan. The first $10,200 in unemployment benefits is non-taxable on your 2020 return.
If you already filed your taxes and you counted all the unemployment income--
chances are you're going to get money back from the IRS. Those payback checks start going out this month and will continue throughout the summer. The IRS does not want you to file an amended return.
#3 MARKETPLACE INSURANCE PREMIUMS
If you had health insurance through the marketplace and paid a premium, The IRS is suspending the requirement to repay any excess tax credit.
"If they underestimated their income and they were normally supposed to pay some of that back. It's a one-time thing. If you were normally supposed to pay some of that back, the IRS is waiving that," said Charles Gaba, ACAsignups.net.