How COVID-19 is Affecting Your Tax Return
Where COVID-19 has affected every business, it also impacts the Taxes, and it is essential for you to know that how COVID-19 is affecting your tax return. And how you can meet the right deadline and get Tax Preparation Services in Hayward, California with-in time.
Since filing tax returns is something that can be done practically, but there is another option available for you to prepare your taxes online by hiring the tax services. Or if you want to do taxes on your own, you can also do that here you can book your appointment. However, it is still good to know how COVID-19 will affect your filing tax returns.
The federal tax extends from April 15 to July 15 for all taxpayers, including (individuals and businesses). To take advantage of this, it does not need to be updated; it acts automatically. The same extended date applies for the Tax services in California refers to both state and federal tax returns.
Normal Return Process:
The tax refund process usually takes 21 days, or less from the date of electronic filing is accepted. The process is still the same, even in the case of an extended application period. The IRS expects that refunds will be processed typically, and any delays will be minor.
More time for IRA contributions:
As the last date of tax filing was April 15, 2020, which is now extended to July 15, 2020. After the extension of the deadline, it can be beneficial for you. Deposits up to this point will include them in the filing of tax returns in 2019, which can provide significant benefits and increase your tax refunds.
The latest tax return is required to verify incentives:
If you have not filed your tax return in 2018 or 2019, it is time to accomplish these tasks. The recently passed CARES Act (Coronavirus Stimulus Update) provides for incentives of up to $1,200 for individuals, $2,400 for joint taxpayers, and an additional $500 for each child of the taxpayers.
These amounts are based on your latest tax returns, so if you haven’t paid your taxes or being laze to pay your taxes in 2019, your direct deposits will be determined based on your previous tax returns, which was of 2018.
You can defer payments:
Self-employed persons and others who may claim taxes can defer payments for up to 90 days without penalty or interest. This includes all charges due for 2019 (including the tax on the self-employed) as well as the first quarterly payment for 2020. Even if you report the extension until October 15, you will still have to pay taxes before July 15.
If you need help and understanding how COVID-19 affects your taxes, you can hire online tax preparation services in Hayward, CA. Tax magic offers you the best tax preparation and advisory services at this difficult time and year-round.