IRS Postpones Tax Filing Deadline To May 17

Speaker 1: 00:00 Taxpayers are getting more time to file this year. The IRS has announced that it's extending the filing deadline from April 15th to May 17th. The deadline has also been extended for California state taxes. The reason given is that between vaccinations and business and school reopenings and the virus still in circulation, this is a hectic time for most Americans, but it's also been a hectic time for the IRS. The agency is dealing with a backlog of filings from last year, plus calculating and sending out stimulus checks and dealing with a host of last minute changes in tax law from the Biden stimulus package. Joining me is Raphael Tulino media relations director for the IRS in San Diego. Rafael, welcome back to the show. Thanks Speaker 2: 00:48 For having me as always glad to be here. What Speaker 1: 00:50 Are some of the biggest of those last minute changes that will affect taxpayers this year? Speaker 2: 00:56 Uh, I suppose the, the first thing to address out of this new law and we haven't quite got there yet is the unemployment part of it is in there that says the first $10,200 of unemployment in 2020 is not taxable provided your income is Mary Valley and joined, I believe so $150,000 or less. And, um, the other part of that was the economic impact payments that began going out, uh, this past weekend. And as of yesterday, I believe we put something out, said 90 million of those have already gone out. So that's direct deposit the rest by check and debit card as the first two economic impact payments went out last year. And it really January of this year, Speaker 1: 01:35 The economic impact, um, payments that you're talking about are popularly known as stimulus checks, right? Yes. The IRS is administering the new child benefit included in the Biden stimulus law. What can you tell me about how that will work? Speaker 2: 01:52 Here's what I do know off the top. Then in 2021, the child tax credit is increased from 2000 to $3,000. If it's under age six for children under age six, I believe in 21, if I'm understanding that right, it goes to $3,600, and then there's a provision in that law that has periodic payments being sent out each month or thereabouts. Everything is it's been made refundable, a refundable tax credits, like the earned income tax credit, for example, which is the most popular refundable tax credit. Meaning once your taxes are reduced to zero and you have more coming back and you get that back to you in the form of a refund, as opposed to just reducing the taxes you paid to zero. The other thing from the child tax credit, as I read here from the provisions in the law is it is increased to under age 18, as opposed to under age 17 Speaker 1: 02:44 People who earn so little that they don't usually file could and should file for this new child benefit. Isn't that right? Speaker 2: 02:53 Well, there's the additional child tax credit and there's the child tax credit and general yeah, it's for lower income, the additional, and that has to do with the amount of income you make and the amount of child tax credit you're eligible for, uh, beyond that, I won't get into the complexities of it, but, uh, you know, certainly if you're talking about any tax benefit for any lower, moderate or higher income taxpayer, you should take advantage of it, either increase your refund or lower your tax bill, Speaker 1: 03:20 Any of last year stimulus payments taxable. Speaker 2: 03:24 So round one, round two, round three of economic impact payments and round three being administered. Now none of them are taxable nor should they be included in gross income. Speaker 1: 03:33 What are some of the reasons people may not have gotten their stimulus payments, Speaker 2: 03:37 Life changes, uh, you know, lots of things happen in terms of the administration of all three of these. And you're talking about putting out a whole lot of money in a short amount of time. You're talking about taxpayers who may have filed last year in 18 return and not a 19 return. And as we speak now, maybe the 19 return, but the 2020 return has not been processed. So you're talking about two different tax years and the income levels for each based on the law that is there. So you may have a difference from one year to the next, depending on when you file it or not. Uh, if you had a baby, uh, for example, childbirth is a change that could have happened in 2020 for the first or second economic impact payment. So if you have changes for those two and not the third, because the third is so new, there is line 30 on form 10 40, which is the recovery rebate credit. And that is a backstop. If you will, you did not get the full amount or a partial amount of round one or round two of those economic impact payments. Then that is where you will get the full amount based on changes you had and your eligibility, of course, in 2020, Speaker 1: 04:43 If you haven't filed your 2020 taxes yet, does that mean you may not get this most recent stimulus until you do Speaker 2: 04:52 Not necessarily. The new law is basing the new economic impact payment round three here. Uh, if you will stimulus three on 19 and or 20 returns. So it depends on what's been processed or not. Speaker 1: 05:06 Despite the deadline being extended, the IRS is encouraging taxpayers to file as soon as possible. What are the benefits of doing that? Speaker 2: 05:14 Well, if you choose a paperless tax return as always, that's the quickest way to get your tax refund three weeks or less or most, but the bottom line is if you want your money as quick as possible, you want to get to a computer and hit, enter and choose to record. Speaker 1: 05:29 If those who owe money to the IRS file, as soon as possible as well, they'll still have extra time to pay, right? Speaker 2: 05:35 Generally speaking, if you owe taxes based on this new, um, a piece of guidance, if you will, that extends the deadline a month, then the payments are due on the deadline, which is May 17th in 2021. Speaker 1: 05:48 We've just been able to sort of take a look at the tip of the iceberg here in this conversation. Where can people go for more information, Speaker 2: 05:55 Right? irs.gov for anything and everything, anything free forms, filing all that kind of answer his questions. Speaker 1: 06:03 I've been speaking with Raphael Tulino media relations director for the IRS in San Diego Raphael. Thank you. Speaker 2: 06:09 And thank you for having me, Maureen, anytime.