Filing taxes isn’t always simple, straightforward or enjoyable process, especially with all the new tax rules brought about by the COVID-19 pandemic. But procrastinating this year could cause you to miss out on some key benefits to filing your 2020 federal tax return ahead of the April 15 deadline. For example, you could receive your tax refund sooner.
We’ll also explain how your taxes can affect the amount you could receive with a third stimulus check, which sits at $1,400 per eligible person, as well as when you get the money. Filing your taxes early could help you finally get any missing stimulus money you qualified for, wether you faces clerical errors, issues with custody and child support, overlooked child dependents or funds that were mistakenly garnished.
Our tips apply to people considered tax nonfilers, too, and carry extra weight based on what could happen when a third check arrives during tax season 2020. Here’s additional information about all the benefits you could receive for child care and older adults and when it’s time to contact the IRS or set up a payment trace if your stimulus payment doesn’t show up. This story was recently updated.
4 reasons to your taxes early this year
Before we explain how you could benefit by filing taxes early, for some, filing a tax extension might be the better way to go.
Benefit 1: The earlier you file your taxes, the sooner you’ll get your tax refund (you can estimate the total here). That’s a great reason to file early every year.
Benefit 2: Since any missing stimulus check money is also tied to your tax return this time around, filing early will mean you get any missing stimulus money faster, too. If you’re owed a tax refund and stimulus money, both will arrive as part of the same payment. For example, let’s say your tax refund was $500 and your stimulus check allotment was $500. You’d receive a $1,000 payment from the US Treasury.
(If you’re on the hook for taxes but you’re owed stimulus check money, the amount you have to fork over will be reduced. So, if you were to owe $1,000 in taxes and you’re missing $500 in stimulus check money, you’d only owe $500 instead of $1,000.)
Benefit 3: The chance to set up direct deposit with the IRS or fix any errors. People with direct deposit accounts on file with the IRS have typically received their stimulus payments faster than those getting money in the mail. We suspect the same will be true with the third stimulus check of up to $1,400 per person (read about why the new check might be “targeted”)…Read more>>