Tax Day Is Tomorrow. Here’s What to Know.

Tomorrow Is the Deadline, but Extensions Are Available

Tomorrow is July 15, the deadline for filing 2019 tax returns. The IRS pushed the deadline for all individual taxpayers back by three months this year to help people dealing with coronavirus economic fallout. In June, Treasury Secretary Steven Mnuchin indicated that there might be another extension, but the IRS announced that would not be the case.

Individual taxpayers do still have the option to request an extension. They can file an extension form by tomorrow, and then have until October 15 to prepare their returns. No specific reason is required for an extension.

Tax season always comes with complications and questions. Here are a few key points to keep in mind this year.

IRA Contributions and Refunds

Taxpayers can still contribute to their IRAs until July 15. For the purpose of IRAs, July 15 functions like April 15 this year.

To make last-minute contributions to your IRA for the 2019 tax year, visit SoFi Invest® in the SoFi app.

For people who are owed a refund, there’s good news and bad news. The bad news is that refunds will likely be delayed this year. As of July 3, about 142 million people had filed their tax returns, and more than 12 million of those had not yet been processed. This is because the IRS was understaffed during the pandemic and was busy sending out stimulus checks. The good news, however, is that the government will pay 3% to 5% interest on delayed tax refunds for people who file by July 15.

What About Stimulus Checks?

The $1,200 stimulus checks distributed as a part of the Cares Act were technically a credit for the 2020 tax year. However, the Federal Government determines who is eligible for the payment based on the latest income information they have available. If they have information about a person or a couple’s 2019 income, they will use that. Otherwise they will use information from 2018.

To qualify for a stimulus check, a person’s income must be below $99,000, and a couple’s combined income must be below $198,000. If a person qualifies for a stimulus check based on their 2018 income but not their 2019 income, they may choose to delay filing. On the other hand, if a person qualifies with their 2019 income, but not their 2018 income, they may decide it makes sense to file sooner.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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