Today is April 15, 2020. Under normal circumstances today would be the day that your taxes are due. Since these are not normal circumstances, the deadline to file state and federal taxes has changed. The new day is July 15th. If you haven’t already filed your taxes it might make sense to file them sooner rather then later. Why? There are a few reasons to file your taxes now!
It doesn’t matter what side of the fence you are on when it comes to a tax refund, bottom line, most Americans will receive a refund. This year so far, the average federal refund is just over $3,000. In Minnesota our average state refund is nearly $1,000. According to the IRS in 2019, 71 percent of the 155 million people who filed their taxes received a refund. A reminder the IRS usually takes up to 21 days to process and send out your refund. If you wait until July 15th to file your taxes you would not be receiving that refund until August.
Economic Impact Payment:
The Economic Impact Payments from the Federal Government are based off you tax filings. The first round of payments was sent out in April. If you did not receive a payment, you might need to look at what you made in 2018. If your income changed from 2018 to 2019 you may or may not be eligible to receive $1200 from the Federal Government. To view the eligibility requirements visit here.
If you need to file your taxes the IRS is currently not processing paper tax returns. If you need to file taxes, you will have to do it electronically. You can file your taxes for free through the IRS if you made under $69,000 last year. If you haven’t filed your taxes yet, filing electronically is less susceptible to scam, fraud, and is faster.
By filing your taxes as early as possible you help prevent identity theft. By waiting until summer to file your taxes you allow scammers an extra couple of months to try and steal your personal information. Once a scammer has your social security information, they can file a fake tax return under your name and take your tax return.