JACKSON, Miss. (WLBT) - Another tax year under the pandemic gives Americans more time to file their taxes.
The president has issued unemployment tax breaks, but will it help if you file in the Magnolia State? The federal government is extending the 2020 tax filing date from April 15 to May 17.
Individual tax payers can also postpone federal income tax payments for 2020 without penalties or interest. But you may run into delays in getting returns while the IRS continues to issue a third round of stimulus checks.
Jackson Hewitt Enrolled Agent and tax preparer Susan Norris says it typically takes the IRS 21 days to process your return but there could be delays.
“There are times that the IRS does review tax returns, and if they do it could delay tax returns,” said Norris. “We have been seeing a little bit of delays in some of the tax returns.”
On March 11, President Joe Biden signed the American Rescue Plan. It is a $1.9 trillion COVID relief bill that gives a federal tax break on up to $10,200 of unemployment benefits from 2020.
Mississippi is one of 13 states that taxes unemployment.
“There’s no provision for unemployment benefits in Mississippi. So that must be counted as income for this year,” said MS Department of Revenue Communications Specialist Jacob Manley.
“There were individuals that filed their tax returns and they taxed the unemployment. So the IRS says do not amend your tax return at this time,” added Norris. “They are actually working right now to adjust those tax returns. They’re going to be sending checks out to taxpayers that even have already received their refund for federal purposes. They’re going to adjust it themselves.”
If you can’t file state and federal returns by May 17, an extension will give you until October 15.