The new stimulus plan could affect your 2020 taxes. Facing pressure from lawmakers, the agency recently extended the tax filing deadline to May 17. The changes create work for the IRS, tax preparers and taxpayers. The one passed in March also directs the IRS to send out periodic payments for an expanded child tax credit, as well as waive income taxes on up to $10,200 in unemployment benefits received in 2020, helping some laid-off workers who faced surprise tax bills on their jobless benefits. The agency is also grappling with several changes to the tax law made by the Covid relief bills. It will be a challenging year for the IRS, an agency whose budget has been cut about 20% over the past decade, leaving it with antiquated technology and a smaller staff. IRS Commissioner Charles Rettig told lawmakers at a hearing last month that the agency had extended its reach far beyond its normal contacts to try to reach lower-income people, working with “hundreds of local community groups and religious organizations” as well as “thousands of homeless organizations.” “It certainly doesn’t look like that’s the priority when they’re taking down these tools rather than creating them.” “I think the IRS has limited resources and has to decide how much to devote to its traditional lines of business, like processing tax returns and audits, or becoming more of a customer service agency focused on benefits delivery,” said Elaine Maag, a principal research associate in the Urban-Brookings Tax Policy Center. Will Lanzoni/CNNĬongress failed to protect stimulus checks from private debt collectors. President Donald Trump's name appears on a stimulus check on May 3, 2020. In the weeks since President Joe Biden signed the most recent stimulus bill, the IRS has swiftly delivered more than 156 million payments – but those who likely need the money the most may still be waiting. Most Americans had their stimulus payments directly deposited into their bank accounts or sent in the mail without them having to take any action. It estimated that about 25% of low-income Californians didn’t get the money automatically last year. The group found that at least 1.5 million Californians could potentially miss out on $3.5 billion in stimulus payments. The IRS reposting its online non-filers tool immediately would be a good first step,” Aparna Ramesh, senior research manager at the California Policy Lab at UC Berkeley, said in a statement. “The stakes are high with billions of federal dollars not reaching low-income people in California and across the country. People who used the non-filer tool before it went offline will automatically receive their third stimulus payment without taking action.Īn IRS spokesman told CNN Thursday that there are no plans to bring back the tool but encouraged people to file returns so that they can claim a credit for all three payments as well as claim any other expanded credits they may be eligible for, like the Earned Income Tax Credit or the child tax credit.įiling a return ensures that families may get other benefits they qualify for, like the Earned Income Tax Credit or the now expanded child tax credit – but it can be a challenging process for someone who hasn’t filed in years. Now, people who missed out must file a 2020 tax return in order to get the money they’re owed from the first two stimulus checks, along with the third one. But that tool has remained offline since November, even after Congress approved two more rounds of stimulus payments. About 8 million low-income people were eligible for stimulus payments last year but never received the money, raising concerns about getting the latest round of help to those most in need – yet there’s no sign the Internal Revenue Service plans to restore a tool that would make it easier.Įarly in the pandemic, the IRS created a simple online form to allow low-income people who aren’t usually required to file tax returns to provide their contact information to the agency.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |