With everything that’s been happening over the past few months, filing your taxes may be the farthest thing from your mind. If so, don’t sweat it—you still have time.
To provide Americans with some economic relief, the IRS has pushed Tax Day back to July 15, 2020. That means all taxpayers, including individuals and businesses, now have until mid-July to file their 2019 tax returns. It also means that with extra time to get organized, there’s no need to stress about your taxes.
It’s important to do research or consult a tax advisor for guidance, but here are a few things you should know about the federal tax extension:
Do I have to fill out any extra forms?
No additional forms or contact with the IRS is needed to qualify for the automatic tax extension. If you need extra time beyond the July 15 deadline, however, you’ll have to request a further extension by filing Form 4868 (or Form 7004 for businesses).
What if I owe money?
If you decide to take advantage of the filing extension, you can also defer any tax payments that were due on April 15, without penalties or interest, regardless of how much you owe. This applies to all taxpayers, from individuals to corporations.
What about state taxes?
While the IRA tax extension applies only to your federal taxes, many states have followed suit. In Oregon and California, both filing, and payment deadlines have been pushed back to July 15, as well. Washington state residents have until June 15.
Will this delay my refund?
Most tax refunds are still being issued within 21 days, which means the date you file will determine when you get your refund. If you’re anticipating money back, the IRS recommends filing as soon as possible, regardless of the deadline.
What’s the quickest way to get my refund?
Filing electronically with direct deposit is the quickest way to get your federal tax refund, according to the IRS. OCCU members can save both time and money by using TurboTax, which makes filing your taxes online faster and easier. As a benefit to our members, we’ve partnered with TurboTax to offer up to $15 off all their federal products.
Where should I deposit my refund?
Filing with direct deposit not only helps you get your refund faster, but it can also accelerate your next economic stimulus check. To get the most benefit from your refund, consider depositing it into an Ignite Savings® account. You’ll earn higher interest than a traditional savings account, allowing your refund to stretch further.
How should I use my refund?
Since there’s no telling what will happen with the economy during this time, one financially savvy way to use your refund is to start an emergency fund—or replenish your existing one—to help you through the lean months ahead. The best course of action depends on your current financial situation, so it’s best to consult a tax advisor.
You’ve got enough going on right now without worrying about your taxes. Unless you’re in a hurry to get your refund, the filing extension gives you some extra time and breathing space.
If you’re ready to file your taxes, don’t forget to use your OCCU member benefit and save up to $15 off all TurboTax federal products.