{"id":33687,"date":"2021-04-06T14:12:02","date_gmt":"2021-04-06T21:12:02","guid":{"rendered":"https:\/\/lapost.us\/?p=33687"},"modified":"2021-04-06T14:12:02","modified_gmt":"2021-04-06T21:12:02","slug":"the-american-rescue-plan-and-your-taxes-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=33687","title":{"rendered":"THE AMERICAN RESCUE PLAN AND YOUR TAXES: WHAT YOU NEED TO KNOW"},"content":{"rendered":"
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Source: EMS | by Jenny Manrique<\/a><\/span>\u00a0|\u00a0Apr 6, 2021<\/span>\u00a0|\u00a0Politics<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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From left to right: Susan Simon, Director, Customer Assistance, Relationships and Education, Wage and Investment Division, Internal Revenue Service; Kenneth Corbin, Commissioner, Wage and Investment Division, Internal Revenue Service<\/em><\/p>\n<\/div>\n<\/div>\n

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Also available in\u00a0Spanish<\/a>.<\/p>\n

The IRS has extended the deadline for filing tax returns until May 17. The child tax credit will be issued starting this summer and a portion of the unemployment benefits will not be taxable.<\/em><\/p>\n

By: Jenny Manrique<\/strong><\/p>\n

The Internal Revenue Service (IRS) extended the tax payment deadline from April 15 to May 17, at a time when the third round of stimulus checks surpassed $335 billion in payments reaching 130 million Americans.<\/p>\n

This and other provisions approved in the American Rescue Plan, such as the child tax credit and the establishment of non-taxable unemployment benefits, seek to help families economically battered by the pandemic.<\/p>\n

\u201cAs the pandemic continues, we remain focused on supporting the federal government\u2019s efforts to help those experiencing financial changes and challenges,\u201d said Ken Corbin, Commissioner at the IRS Wage and Investment Division, during a media briefing hosted by Ethnic Media Services.<\/p>\n

\u201cThat\u2019s one reason why we extended the due date: individuals have until May 17 to file and pay their 2020 taxes. No one will be penalized or charged interest if they file and pay by that date. This applies only to individuals, not to taxpayers like corporations,\u201d Corbin explained.<\/p>\n

This extension also applies to tax year 2020 contributions to an Individual Retirement Account (IRA) or Roth IRA, health savings account, Archer medical savings account, or Coverdell education savings account. However, for those making estimated tax payments for the first quarter of fiscal 2021, the April 15 deadline remains.<\/p>\n

Since February 12, the IRS has received 85 million individual tax returns and issued over 56 million refunds totaling almost $164 billion. IRS officials recommend using direct deposit with E-filing as the most immediate way to complete the process and receive your refund in 21 days.<\/p>\n

\u201cWe know that even with the vaccine rolling out, many folks may not be comfortable going into a brick and mortar office or dealing with their tax preparers (in person),\u201d Corbin said. \u201cWe encourage you to E-file and choose direct deposit.\u201d<\/p>\n

There are several tax preparation softwares that allow individuals who earn less than $ 72,000 a year to file for free. The IRS one can be found\u00a0here<\/b><\/a>. The\u00a0IRS2GO\u00a0<\/b><\/a>mobile app also allows you to find free assistance in preparing taxes, making payments, and checking the status of refunds.<\/p>\n

Stimulus checks<\/strong><\/p>\n

Corbin highlighted the IRS\u2019s work on the rapid disbursement of economic impact payments (EIPs), commonly known as tax-free stimulus checks: in the first round, more than $160 million reached American families, and in the second round that figure was $147 million.<\/p>\n

Those who did not receive those payments of up to $1,200 and $600 per person, will be able to claim them through the recovery rebate credit on their tax return. Individuals can access information about their EIP\u2019s through an online federal tax account which they can register for at\u00a0irs.gov.\u00a0<\/b><\/a>The account also allows people to create a PIN as a layer of protection to avoid fraud with the use of social security numbers (SSN).<\/p>\n

Under the third round of economic impact payments authorized under the American Rescue Plan, the IRS has made more than 130 million payments worth approximately $335 billion, for those who filed their taxes in 2019 or 2020. A new group of social security and other beneficiaries who haven\u2019t filed a tax return may receive checks beginning on April 7. Veterans are also expected to receive their stimulus payments by mid of April.<\/p>\n

\u201cThe majority (of payments) have been issued as direct deposits,\u201d Corbin said. \u201cBut we are also mailing paper checks or EIP cards, which is a prepaid debit card. If we don\u2019t have your bank account information, we encourage you to check your mail and be sure not to throw away that prepaid EIP card.\u201d<\/p>\n