Federal tax returns are due on May 17, 2021. In this informative post, you will learn about how to file a federal income tax return.
Let's know about the tax filing deadline
The deadline for filing Federal tax for non residents was extended by the internal revenue system (IRS) from April 15 to May 17, 2021. But this deadline doesn't apply to state and local tax returns. You have to find out the tax filing due dates in your states to ensure you file those on time. If you owe money and don't fike and pay your taxes on time, you will be charged interest as well as a local payment penalty. There is no penalty for filing a late return for taxpayers due a refund.
How to file a federal income tax return?
The internal revenue system started accepting and processing federal tax returns in Feb 12, 2021. In order to get your tax return began, you need to find out first hoe much money you earn in 2020. After that you need to decide whether to take the standard deduction or itemize your return.
In the last, you need to submit everything by May 17, 2021.
Step to file federal tax return
You have to gather your paperwork including - A W-2;form each employer.
Receipts for charitable donations and medical and business expenses if you are itemizing your return.
Other earnings and interest statements.
Now choose your filing status based in whether you are married. The percentage you pay towards household expenses affects your filing status as well.
Now decide how you want to file your taxes. The internal revenue system recommends using tax preparation software to e-file for the most accurate and easier return.
Find out if you are taking the standard deduction not itemizing your return. File your taxes by May 17, 2021.To file your US expat taxes, you can go with USA Expat-Taxes services.
COVID 19 economic impact payments ( EIP) and unemployment benefits.
Because of the COVID 19 pandemic, you may have received unemployment benefits and the economic impact payments (EIP) depending on your eligibility. The IRS doesn't count EIP as taxable income thus you don't need to report it on your 2020 tax return.
Check to be sure you got both of your stimulus payments if you were eligible. Besides, you can also claim missing money from the EIP by filing for a recovery rebate credit on your 2020 tax return. Remember, missing EIP money will be issued through tax refunds or lower tax bills. In case you lost your job and qualified for compensation, the unemployment benefit payments you received are considered taxable income. You must receive form 1099-G which will show you the amount of unemployment funds you got during this year. You can use this form to report income from unemployment benefits on the federal tax return.
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