Tag: IRS

IRS Extends Tax Filing Deadline for Taxpayers in Several States

Posted on by scott.hodges

Most American taxpayers need to file their individual income tax returns by April 15. However, the IRS has extended the 2024 tax filing deadline for individuals and businesses in parts of the U.S. to provide relief following federally declared disasters. Taxpayers in nine states now have until May 1, 2025, to file their federal tax returns and make payments.

This automatic extension applies to the entire states of Alabama, Florida, Georgia, North Carolina, and South Carolina, as well as specific areas in Alaska, New Mexico, Tennessee, and Virginia that received FEMA disaster declarations in 2024. The extended deadline is intended to give affected taxpayers additional time to manage their financial responsibilities, gather documentation, and prepare returns while recovering from the impact of hurricanes and other extreme circumstances.

In addition, the IRS has granted further extensions for other regions. Los Angeles County, California, has a new deadline of October 15, 2025, following January’s wildfires. Additionally, all of Kentucky, along with parts of West Virginia, have until November 3, 2025, to file after severe February storms.

These extensions apply automatically to eligible taxpayers in affected areas, requiring no additional forms or requests. They are part of the IRS’s ongoing efforts to support communities impacted by severe weather and other emergencies. Full details on eligibility and updated deadlines can be found on the IRS website.

Automatic Relief Coming: IRS to Distribute $2.4B in Unclaimed Tax Credits

Posted on by scott.hodges

The Internal Revenue Service (IRS) is preparing to distribute a wave of special payments to nearly one million American taxpayers who missed claiming their 2021 Recovery Rebate Credit, popularly known as stimulus checks, that was a part of the CARES Act. The distribution, totaling approximately $2.4 billion, will commence this month and continue through January 2025, with eligible individuals receiving up to $1,400 each.

These payments target taxpayers who filed their 2021 tax returns but overlooked claiming the Recovery Rebate Credit, either by leaving the field blank or entering zero. In a move to streamline the process, the IRS will automatically issue these payments without requiring amended returns from eligible recipients.

Distribution methods will vary based on taxpayers’ current banking information. Those with valid bank accounts on file with the IRS will receive their payments through direct deposit, while others will receive paper checks at their registered mailing addresses. This dual approach ensures efficient delivery to all eligible recipients.

For taxpayers who haven’t yet filed their 2021 returns, there’s still time to act. The IRS has set a deadline of April 15, 2025, for claiming the credit and any other outstanding refunds. Importantly, receiving this credit won’t impact eligibility for federal benefit programs such as SSI, SNAP, TANF, or WIC.

Taxpayers can verify their eligibility by reviewing Line 30 of Form 1040 or Line 15 of Form 1040-SR on their 2021 tax return. Those who need to update their banking information for direct deposit can do so through their tax software before filing, or contact the IRS directly for alternative arrangements. The IRS encourages taxpayers to visit their website for complete details about eligibility requirements and payment amounts.