Tax return deadline is right around the corner

If you still need to file that 2019 income tax return, it’s time to get cracking.

July 15 is the new April 15 for those who still have not filed a tax return. The traditional April income tax deadline was extended this year for 2019 tax returns, due to the upheaval created by COVID-19.

The one-time extension applied for some state and municipal returns too.

Think everybody who waited owes big money? Think again. Oddly enough, experts say millions of procrastinators are likely owed a federal income tax refund for 2019.

H&R Block estimates that more than half of its clients who still need to file would receive a refund after they file. And the tax giant is running TV ads this summer highlighting the prospects of a tax refund.

As many as 11.3 million people still had not received federal income tax refunds for 2019 taxes — down 10.8% from a year ago, based on data through June 19 from the IRS.

Here’s what you should know if you need to file by July 15:

Will I be able to find tax help?

Some tax preparation sites are open to walk in customers who want to drop off their taxes but you may need an appointment if you want to sit down and talk with someone. It’s best to call first.

Jackson Hewitt is offering a “Document Drop Off” where clients can drop off their tax documents at a local office — and introduced a “Tax Pro From Home” service enabling clients to work with a tax professional remotely.

It’s still possible to find free tax help, if you qualify, too.

The Accounting Aid Society has temporarily halted all walk-in services due to COVID-19. But many lower- and middle-income families will still be able to receive free online services.

The nonprofit volunteer income tax assistance group is offering to prepare taxes through what it calls “VITA ACE” for those with incomes up to $56,000. See https://accountingaidsociety.org/vitaace/. Or you can call 313-556-1920.

The “ace” stands for “accessible, convenient and electronic.”

The Accounting Aid Society is able to prepare your taxes entirely online, while consumers stay safe at home. So far this year, the group has served more than 1,300 taxpayers through the VITA ACE program. Services will continue through the end of 2020 and can assist consumers with meeting the Sept. 30 home heating credit deadline and those needing to file prior year returns in order to access Economic Impact Payments and other benefits.

To tap into the program, you would need a smartphone, tablet or computer with a working camera. In addition, the service requires that you have a valid email address you can access. And, of course, you’ll need identification and your tax documents.

Can I get more money by filing by July 15?

Yes. An unexpected consequence of waiting until now to file, H&R Block’s Rigney noted, is that the IRS may owe you interest if you are due a refund and file by July 15.

“That’s because the IRS recently announced that if you are a due a refund, the IRS will pay you interest for each day that passes after April 15 until the IRS issues the refund,” he said.

“Interest rates range from 3% to 5% depending on when the IRS refunds your overpayment,” Rigney said.

The interest could be included with your refund check or issued separately depending on timing.

Do I need to file a state tax return now too?

Several states offered an extension of the income tax deadline until July 15 to match the federal extension.

Often workers in the gig economy — freelancers, the self-employed, investors, retirees and others — may need to make estimated payments because a substantial part of their income is not subject to withholding tax.

If you make estimated payments each quarter for your federal taxes, you’d also owe the April 15 and June 15 payments for tax year 2020 on July 15.

The clock is ticking closer to the July 15 income tax deadline. The coronavirus pandemic drove officials to make a one-time change and offer people a chance to file in July instead of April 15.

How do I pay?

If you owe money but don’t have it, the IRS has a variety of payment options. See IRS.gov/payments.

Taxpayers can even make a cash payment if they don’t have a bank account or credit card at participating 7-Eleven stores, Ace Cash Express and Casey’s General Stores nationwide. There is a $1,000 payment limit per day and a $3.99 fee per payment. And you should look into the “PayNearMe” program before the tax deadline because it involves a three-step process that takes time to complete. It can take five to seven business days to process those payments.