So if people haven’t completed their 2020 returns yet, they will have to estimate what they must pay in 2021 - and could face underpayment penalties at tax time next year if they pay too little over the course of the year. The amount of estimated tax to be paid is typically calculated based on the previous year’s tax return, and the first installment is normally paid when the tax return is filed. The earlier deadline for the estimated tax payment makes the tax return filing extension less helpful than it should be for quarterly payers, tax experts say. Nearly 10 million filers paid estimated taxes in 2018, the I.R.S. ![]() Other income that isn’t subject to withholding includes alimony, interest and dividends, and taxes on the sale of stocks or other investments. But those who don’t have taxes automatically withheld - including self-employed people or workers who have two jobs and don’t have taxes withheld from both checks - generally have to pay taxes to the I.R.S. If they overpay, they get money back as a refund when they file their return. ![]() Most people have income taxes withheld from their paychecks. posted an update on its website, saying it had about 16.5 million unprocessed individual returns “in the pipeline,” including two million received before 2021. But some had already filed returns when the tax break became available, so they will get a refund of any overpayment - probably beginning in May. The latest round of pandemic relief legislation, which became law on March 11, made the first $10,200 of unemployment benefits tax-free for many Americans. In addition, the agency has had to recalculate refunds for filers who reported unemployment benefits last year. was also having to “manually verify” large numbers of rebate credits, which taxpayers can claim to obtain the first and second round of federal stimulus payments, if they haven’t already received them. “resource” issues and technology problems, the advocate service said. This year, even with the late start to the tax season, the agency is still struggling to deal with the 2019 paper returns, along with a crush of 2020 returns, I.R.S. with a backlog of unprocessed paper tax returns. Last year, a shutdown because of the pandemic left the I.R.S. The agency is “on track when you consider that this tax season started late,” an I.R.S. The number of returns processed on comparable days of the season is up about 3 percent, the agency reported. But the start of this year’s tax season was delayed to allow the agency to update and test its systems to reflect tax changes approved by Congress late last year. as of April 2 was down about 10 percent from a year earlier, according to statistics provided by the agency. The number of returns processed by the I.R.S. Filers are seeing “more refund delays” than usual this year, according to an online update on March 25 from the Taxpayer Advocate Service, an independent office within the I.R.S. continues to grapple with pandemic challenges. So it’s a good idea to double-check deadlines. One exception is Maryland, which moved both its filing deadline and the deadline for first- and second-quarter estimated tax payments to July 15. Most states have retained their usual deadlines for first-quarter estimated taxes. Stewart Jr., a certified public accountant and president of the National Conference of CPA Practitioners. “It just creates confusion,” said Mark A. to reconcile the deadlines, but it’s unclear whether that will happen, with April 15 less than a week away. Some members of Congress are pushing for the I.R.S. This year, the first estimated tax deadline remains April 15. ![]() has not postponed the deadline for making first-quarter 2021 estimated tax payments, as it did last year when it delayed Tax Day because of the pandemic. Most states are following the extended federal deadlines, and a few have adopted even more generous extensions.īut the I.R.S. itself more time to adjust to disruptions from the coronavirus pandemic. The Treasury Department and the Internal Revenue Service moved the date to give filers, tax preparers and the I.R.S. The deadline to file a 2020 individual federal return and pay any tax owed has been extended to May 17, about a month later than the typical April deadline. Tax filing is a little more complicated this year.
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