The Internal Revenue Service (IRS) extended the tax filing deadline to July 15 from April 15, 2020, to give people more time, due to the ongoing Covid-19 pandemic. Taxpayers must also make payments if they owe money on their 2019 tax returns by July 15. If you have yet to submit your tax forms for 2020 or make payments on your 2019 taxes, now is is the time to think about filing, or applying for an extension. 

As you’re getting ready to file, here are some things to keep in mind. 

Which tax bracket you’re in 

When you’re filing your taxes, you’ll probably want to know exactly how your income is taxed, according to your income. If your financial situation has changed because of Covid-19, remember that you’re filing for income earned in 2019. Here are the tax brackets for 2019 incomes:

*Source: IRS

*Source: IRS

Remember that you won’t necessarily pay the highest applicable tax rate on all of your income. For example, let’s say you’re single and you make $45,000 annually. You’d pay 10% on the amount up to $9,700. You’d pay 12% on the amount from $9,701 up to $39,475; and then 22% on the amount from $39,476 to $45,000. 

If you got married, bought a house, had kids in 2019, or had some other qualifying event in your  life, you may be eligible for some important deductions. You can find more information about those situations here.

Which tax forms you’ll need

Stash provides tax forms securely online. You can access them through the Stash Invest app by clicking here. You’ll likely have tax forms from Stash if:

• You received dividend payments greater than $10 from your Stash Invest investments in 2019.¹
• You received more than $10 in interest on your Stash Invest account.
• You made a withdrawal from your Stash Retire IRA of $10 or more, or
• You sold an investment in your Stash Invest account in 2019.
• You received dividends on any stock owned, or any stock sold.
• You will also generate a form 5498 if you made a contribution to your retirement account during 2019.

Make sure to download those forms before you start to file.

What to do if you still need an extension

You might still need to extend the deadline for filing your taxes. If so, you can apply for an extension to October 15, 2020. You can submit your application for an extension with the IRS by July 15, 2020.

Remember, the sooner you file, the sooner you’ll receive your refund, if you qualify for one.

The post It’s Tax Time! Here’s What You May Need to Know As Tax Day 2020 Approaches. appeared first on Stash Learn.