IRS Debunks Tax Refund Myths

WASHINGTON ― With the July 15 tax deadline now past, the Internal Revenue Service reminds all taxpayers that there is no secret way to find out when a refund will be issued. Most taxpayers have already filed their federal tax return, and many have already received their refund. Those that have not are understandably eager for details about when their refund will arrive. When it comes to tax refunds, a few common myths keep circulating and misinforming taxpayers. Some key facts can help people understand the refund process better: Taxpayers who file electronically and use direct deposit can expect their
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Here’s Who Qualifies A Taxpayer For The Child And Dependent Care Credit

Childcare or adult dependent care can be a major expense. Fortunately, the child and dependent care credit can provide some relief. Taxpayers who pay for daycare expenses may be eligible to claim up to 35% of what they spend; limits apply. For the purposes of this credit, the IRS defines a qualifying person as: • A taxpayer’s dependent who is under age 13 when the care is provided. • A taxpayer’s spouse who is physically or mentally unable to care for themselves and lived with the taxpayer for more than half the year. • Someone who’s physically or mentally unable
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Reminder To Tax-Exempt Organizations: 990s, Other Forms Due July 15

  WASHINGTON — The Internal Revenue Service today reminds tax-exempt organizations that certain forms they file with the IRS are due on July 15, 2020. For organizations that operate on a calendar-year basis, this includes the 2019 Form 990 they would have normally filed on May 15. The upcoming July 15 deadline applies to many forms that were originally due May 15, including:                                                                                                                                                                                                                                                                     Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF, 990-BL) Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ Forms 8871, Political Organization Notice of Section 527 Status Form
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Taxpayers Need To Resume Payments By July 15 

  WASHINGTON – The IRS today reminds taxpayers who took advantage of the People First Initiative tax relief and did not make previously owed tax payments between March 25 to July 15 that they need to restart their payments. As the IRS continues to reopen its operations across the country, taxpayers who were in payment agreements and skipped any payments from March 25 and July 15 should start paying again to avoid penalties and possible default on their agreements. “Through the People First Initiative, we have endeavored to provide unprecedented relief to help those who owed federal taxes and allow
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IRA Contributions Made By July 15, 2020 Count As 2019 Tax Deductions

WASHINGTON — The Internal Revenue Service today reminded people that contributions to traditional Individual Retirement Arrangements (IRAs) made by the postponed tax return due date of July 15, 2020, are deductible on a 2019 tax return. Taxpayers can file their 2019 tax return now and claim the deduction before the contribution is actually made. But the contribution must then be made by the July 15 due date of the return, not including extensions. Most taxpayers who work and are under age 70 ½ at the end of 2019 are eligible to start a traditional IRA or add money to an
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IRS Says a Paycheck Checkup Helps Avoid Tax Surprises

WASHINGTON — The Internal Revenue Service is reminding taxpayers that using the IRS Tax Withholding Estimator to do a Paycheck Checkup can help them have the right amount of tax withheld and avoid surprises when filing next year. Because income taxes are pay-as-you-go, taxpayers are required by law to pay most of their tax as income is received. There are two ways to do this: Through withholding from paychecks, pension payments, Social Security benefits or certain other government payments. Making quarterly estimated tax payments throughout the year for income not subject to withholding. Income tax withholding is generally based on the worker’s expected filing status
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Taxpayers Should File By July 15 Tax Deadline

IRS has easy ways to help taxpayers who need more time or payment options  IR-2020-134, June 29, 2020 WASHINGTON ― The Department of the Treasury and IRS today announced the tax filing and payment deadline of July 15 will not be postponed. Individual taxpayers unable to meet the July 15 due date can request an automatic extension of time to file until Oct. 15. Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15. The IRS reminds taxpayers filing Form 1040 series returns that they must file Form
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Deadline For Estimated Tax Payments Postponed Until Wednesday, July 15

Deadline for estimated tax payments postponed until Wednesday, July 15   As part of its response to COVID-19, the IRS has postponed several tax deadlines until Wednesday, July 15, 2020. These postponements generally apply to all taxpayers with a filing or payment deadline between April 1 and July 15, 2020. This relief includes individual and corporate quarterly estimated tax payments. Any taxpayer making payments received by July 15, 2020 will not be charged late-filing, late-payment or interest fees.  What taxpayers need to know The due date for filing estimated tax forms and paying estimated taxes has been automatically postponed to July 15, 2020.
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Taxpayers Who Donate To Charity Should Check Out These Resources

Taxpayers who donate to a charity may be able to claim a deduction on their tax return. These deductions basically reduce the amount of their taxable income. Taxpayers can only deduct charitable contributions if they itemize deductions. Here are some resources for people making donations: Tax Exempt Organization Search Taxpayers must give to qualified organizations to deduct their donations on their tax return. They can use this tool to find out if a specific charity qualifies as a charitable organization for income tax purposes. Publication 526, Charitable Contributions This pub explains how taxpayers claim a deduction for charitable contributions. It goes
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