May 17 Federal Tax Deadline Approaching: 5 Things To Know

WASHINGTON, DC — If you still need to file your 2020 tax return, only a handful of days remain before the May 17 deadline.

While taxes are usually due in April, the federal deadline was extended this year after lawmakers and some tax professionals put pressure on the Internal Revenue Service to give taxpayers more time to file because of the pandemic.

If you’re still not sure what the May 17 deadline means for you, here are five things to know if you still need to file your taxes:

1. Why do I need to file by May 17?

Your 2020 tax return could determine whether the government owes you money beyond your actual refund. However, to receive that money, you must file by May 17.

This year, the Internal Revenue Service will use 2020 tax returns to determine the amount of your advance child tax credit payments as well as any "plus-up" payment you’re owed if the IRS underestimated the amount of your third stimulus check, according to a CNET report.

A couple of the most common scenarios where this would apply: if you had a new baby in 2020 or if your adjusted gross income changed significantly.

Submitting your return by May 17 will also be how you recover any money the IRS owes you from the first two stimulus checks distributed in 2020.

Finally, U.S. taxpayers need file by May 17 and pay any owed taxes if they want to avoid penalties and other interest. The IRS provides a rundown on its website of penalties and interest that may accrue after the filing deadline.

2. Does this deadline apply to state returns?

Only some states have pushed back filing deadlines. Check with the state tax agency where you live for any state tax deadline extensions.

Three states with other exceptions for filing federal returns are Texas, Oklahoma and Louisiana, all of which were affected by winter storms earlier this year. Victims in these states have until June 15 to file returns and make tax payments.

3. I was unemployed in 2020. What do I need to keep in mind?

Usually, you’re required to pay taxes on unemployment benefits. This year, thanks to a provision in the American Rescue Act, those who were unemployed in 2020 will see some relief.

If you still need to file your return, keep in mind: Taxes on the first $10,200 of unemployment benefits received in 2020 will be waived. If you’re married, that amount doubles.

If you filed before the waver was established, the IRS plans to refund unemployment taxes starting this month and continuing through the summer, according to a CNBC report.

4. I can’t file before the May 17 deadline. What should I do?

If you need more time to file, you can request an extension through Oct. 15. While this will extend the time you have to file, it will not extend the time you have to pay any owed taxes. Those are still due by May 17.

Taxpayers can request an extension through the IRS website.

5. I already filed. How do I track my refund?

If you've already filed your 2020 tax return and are waiting for your refund to arrive, the IRS has tools available to track your refund. The Where's My Refund tool tracks your refund using your Social Security number. The IRS also has a mobile app, IRS2Go, that checks your refund status.