2020 brought the Coronavirus pandemic and left millions of Americans without jobs. Unemployment payments reached historical highs. The U.S. government passed two relief income packages in 2020. As many Americans continue to suffer during this pandemic, the IRS is requesting all working individuals to electronically file their returns to expedite the entire process.
“Where tax refunds will end up for the 2020 tax year is uncertain, though the trends tend to point toward higher refund levels compared to recent tax seasons. Many taxpayers have yet to claim their economic impact payment. Up to nine million individuals eligible for a payment had not received one as of mid-September 2020. Additionally, individuals who have not received a second-round stimulus payment by today must indicate it on their tax return to receive this credit. Filers will have to watch that they do not double claim these payments if the second-round payment arrives after filing a return, which may require an amendment to the tax return.”
“The 2021 tax season will be a messy one for taxpayers, the IRS, and state tax authorities because of the tax changes made over the past year and the logistical challenges due to the ongoing pandemic. The IRS should provide flexibility for individuals and businesses seeking to comply with and understand their tax obligations for the year while looking forward to ways that would simplify tax compliance and the filing process.”
With the ongoing pandemic, we need to file our taxes as soon as possible. 2020 brought many changes to how we work, live, and our income. We should not wait till the deadline to file our taxes. Every individual and family should file electronically to avoid any conflict if the new presidential administration decides to approve a third income relief package.