FOOD BANK’S FREE TAX FILING SERVICE IS BACK!
MINIMAL CONTACT DROP-OFF LOCATIONS & 100% ONLINE SERVICES AVAILABLE FOR YOUR SAFETY AND CONVENIENCE
Food Bank’s Tax Assistance Program provides low-income New Yorkers with free tax preparation services, helping them get the refunds and credits to which they are entitled. This includes the Earned Income Tax Credit (EITC), which alone can be worth up to $8,991 for families. File your taxes safely with Food Bank and take charge of your finances in this uncertain time!
CHILD TAX CREDIT (CTC) EXPANSIONThere have been important changes to the Child Tax Credit that will help many families receive advance payments starting this summer. The American Rescue Plan Act (ARPA) of 2021 expands the Child Tax Credit (CTC) for tax year 2021 only. The expanded credit means:
- The credit amounts will increase for many taxpayers.
- The credit for qualifying children is fully refundable, which means that taxpayers can benefit from the credit even if they don’t have earned income or don’t owe any income taxes.
- The credit will include children who turn age 17 in 2021.
- Taxpayers may receive part of their credit in 2021 before filing their 2021 tax return.
- For tax year 2021, families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6 at the end of 2021. Under the prior law, the amount of the CTC was up to $2,000 per qualifying child under the age of 17 at the end of the year.
The IRS urges people with children to file their 2020 tax returns as soon as possible to make sure they’re eligible for the appropriate amount of the CTC as well as any other tax credits they’re eligible for, including the Earned Income Tax Credit (EITC). Filing electronically with direct deposit also can speed refunds and future advance CTC payments.
For more information: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
WHEN TO EXPECT YOUR REFUND
This E-filing delay will also impact the timeline that a client will be expected to receive a refund.
The IRS says that refunds will take approximately 21 days from the day IRS receives the return.
Based on this timeline that IRS provided, our clients should start receiving refunds for those first returns processed by beginning of March.
See IRS Notice here (IR-2021-16): https://www.irs.gov/newsroom/2021-tax-filing-season-begins-feb-12-irs-outlines-steps-to-speed-refunds-during-pandemic
TAX DEADLINE EXTENDED TO MAY 17
The Treasury Department and Internal Revenue Service have announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.
Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed.
Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868
The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.
This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.
For more information, read the official notice from the IRS: https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline