Back in March, when it became known that the COVID-19 pandemic was coming to the United States, the IRS extended the filing deadline and the federal tax payment deadline, so that those of us who suddenly had to figure out how to work from home Should deal with or homeschooling would get a break from dealing with taxes.
The holiday is over. The new deadline for filing your taxes for 2019 ends on July 15th and is getting closer. Whether you are a full-time employee dealing with a single 1040 or a freelancer / gig employee receiving a series of 1099s, the quickest way to pay the Piper these days is to do it online.
The IRS provides a number of instructions on its website that allow US citizens to determine their taxes, report those taxes, and send payments (or refunds) using its online e-file method.
Here's an overview of what's available and where to find it.
How do I submit online?
Depending on your income and your convenience in handling the entire income tax process, there are several ways to file online.
If your adjusted gross income (this is line 7 of last year's form 1040) is $ 69,000 or less, you can use the IRS Free File Online option. The website offers a range of third-party services that allow you to collect and file your taxes for free. Of course, this assumes that the third party does not try to get you to pay more than you have to. In April 2019, ProPublica announced that TurboTax and other providers have deliberately hidden the pages for their free services to convince taxpayers to purchase additional features. As a result, the IRS published new rules that prohibit these practices. Nevertheless, it is worth being careful.
If your income exceeds $ 69,000, you can still use fillable forms provided by IRS Free File. However, the free software does not support you and you cannot raise your state taxes using this method. So, if you are not a professional in completing taxes, you either have to use e-File with one of the available software solutions or find a tax advisor who will do it for you. In the latter case, the person or company collecting your taxes must be authorized to submit them electronically. You can check this on the IRS website.
How do I pay online?
The IRS lists a variety of ways you can pay your taxes online.
If you use e-file, the IRS can withdraw the money directly from your bank account at the same time as the electronic withdrawal. You can also use IRS Direct Pay to withdraw money from a savings or checking account.
Finally, you can pay with a credit or debit card online, by phone, or on your mobile device. In this case, there is usually a fee (since the IRS does not cover what your credit card company charges for the service).
How do I get my refund?
One of the ways the IRS tries to convince you to submit online is to assure you that you will get your refund faster – in less than 21 days in most cases. Once you have made an electronic submission, you can check the status of your refund online. You can also download the official IRS2GoApp, which allows you to check the status of your refund, pay your taxes, and get other information.
What about my economic impact payment?
Already in March it was announced that tax advisors would receive a payment for economic effects together with certain groups of people whose income did not require the filing of income taxes. This payment was intended to compensate for part of the economic hardship suffered by people who suddenly ran out of income when companies in the United States closed due to the pandemic. The maximum amount available was $ 1,200; People who earn more than $ 75,000 and married couples who earn more than $ 150,000 would reduce that amount.
You probably should have gotten yours already; If not, you can find out why on the IRS website. Incidentally, the EIP will not be considered taxable income if you submit your taxes for 2020 next year.
Update July 2, 2:30 p.m. ET: This article was originally published on January 31, 2020 and updated with the new IRS file date and EIP information.