We Live In Texas So We Don’t Have To File Taxes Until June
Remember way back in February when the entire state of Texas froze over and we were all huddled around our fireplaces trying to stay warm after the lights all went out? Well, El Paso was able to avoid, for the most part, the lights going out part but because the rest of the state was in such a, well, state, all of Texas will be able to wait until June 15 to file their federal income taxes. If you haven't filed taxes yet you still have just under a month to get them done.
A lot of questions about federal tax filing have come up because of the COVID-pandemic. Here are a few that keep popping up on tax question websites:
1. Can I file for an extension - You can get an automatic five-month extension to file your 2020 federal income taxes but the extension request has to be filed no later than today. The problem is you will still have to pay any remaining federal taxes owed on your 2020 income by today, May 17, to avoid a potential late payment penalty.
2. When will my refund come - They usually take about a month but you can get it faster if you file electronically and do direct deposit.
3. Will I get taxed on stimulus payments - The good news is no, stimulus payments are tax-free. There is more information here about stimulus payments.
4. Will I get taxed on unemployment taxes - They are but if your household has a with modified adjusted gross income below $150,000 last year, the first $10,200 in unemployment benefits for each taxpayer in a household will be exempt from federal income tax. Click here for more information.