If you collected state unemployment but did not pay enough income taxes into the system last year, the state of Michigan isn't going to charge you a penalty or interest related to any underpayment of estimated taxes. The news is important to the millions of people who received jobless benefits last year after restaurants, factories and other places of business shut down during the pandemic. This week, Michigan announced a modest tax break for those who were jobless in 2020 and collected unemployment benefits but did not have enough tax dollars withheld last year. Here are a few tips to consider as you prepare to file those returns: Some news about Michigan taxes More: Well-known Michigan attorney's ID stolen in Ohio unemployment scam
#When will the irs start processing paper returns how to#
More: Tax season 2021: How to get a bigger, quicker tax refund More: New rule helps those who lost jobs in 2020 qualify for key tax credits More: Stop! Don't do your taxes until you dig up this number Last year, the IRS extended the deadline all the way until July 15. Corbin said the IRS is not anticipating extending the deadline as it did last year due the widespread shutdowns early in the pandemic. The tax filing deadline is April 15 this tax season. "We always encourage taxpayers to file the most accurate return they can," Corbin said. If you don't have the correct W-2 forms or 1099s, for example, the return is likely to face delays in processing. The best bet, he said, is to avoid any mistakes and only file when the correct paperwork and information that you need is available. It's one way that some might get a bigger stimulus check, possibly.īut Corbin cautioned that people don't want to rush into filing a return, just to file as soon as possible. If you lost a job and had a sizable drop in income in 2020, some speculate that you'd want to file your 2020 federal income tax return early this year so that the IRS can base the next stimulus payment on your low income last year. Yet buzz is already building on how one might game that system. If all goes smoothly with passing the necessary legislation, some speculate that payments could be out as early as mid-March.
The likelihood of a third stimulus payment of up to $1,400 for individuals is on the table now. Corbin said choosing to file electronically is the safest way to file a return and the quickest way to get a refund.Īs for those stimulus payments, the IRS had some thoughts there too. The IRS is encouraging people to avoid the possible headaches and holdups that can take place when you're filing a paper return during the pandemic. About 18 million refunds were issued in that time frame. 14, 2020, and the bulk of those returns - 38.3 million - had been processed. The IRS already had received 39.6 million individual income tax returns by Feb.
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