2020 INCOME TAXES

 Okay, no one wants to help me by letting me know what they are interested in.  

So this week - income taxes!  (Don't complain, I asked for suggestions.)

First, as of today those in the U.S. now have until May 17, 2021 to file their 2020 income taxes.  Does this mean that one should sit and back and put off doing their taxes?  NOOO.  Get started now.  The sooner you file, the sooner you get your refund.  (Okay, if you owe money you can wait until May 17, but if you owe money, you should file sooner as you may pay less in penalties and interest on what you owe.)

Second, this is a hard year to do income taxes – many people have less income than normal and/or are not sure about how to figure out what to do under the circumstances or what to do about the Economic Impact Payments you received – or didn't receive.  Various tax preparation companies have “free file” where one can file their taxes (if below a certain income) for no charge.  

Third, while IRS has given an additional month to file returns – no states have done so yet.  So unless you live in a state with no income tax  or your state follows IRS's lead in the coming days you may still have to have your IRS return completed on time (even if not filed) to be able to file your state return on time.  

Fourth, IRS is not easy to reach by telephone this year.  I have a client who has not yet received their refund from IRS for 2019.  They filed in October 2020 on extension and have long ago received their state refund, but not a peep from IRS.  I have been telephoning IRS for a couple of weeks now – on a good day I get a recording from IRS that their lines are too busy and to call back later.  On a bad day, I get a phone company message that the call cannot be completed as the lines are too busy.  I found a special IRS office which has a different phone number, what I am calling about does not seem to be listed as something they deal with – but I figure I have nothing to lose by calling them and seeing what they can do – so if I don't get through tomorrow on the regular line, I will try the special office's line and hope I get through and they can help.  

THOUGHT OF THE WEEK-
There is an old expression “Nothing is certain except death and taxes.” This year doing taxes may be certain, but is harder than usual.