The deadline to file both your state and federal taxes is less than 10 days away — May 17, 2021.
So, if you haven’t filed your taxes yet, you need to begin preparing them — and then filing them — right away.
The average federal refunds so far this season have been $2,873, according to the IRS. The average state refund in Arizona is between $500-$600, comparable to last year’s tax season, according to the Arizona Department of Revenue.
While the pandemic slowed processing times, those who file their taxes early and electronically should see their return processed and refund issued faster than those who did not.
The Arizona Department of Revenue said returns have “remained steady” and that the department “continues to process tax returns, payments, and refunds with no reported delays at this time.”
That’s good news.
So far, 2.6 million individual income tax returns have been filed in the state, of which more than 94% were filed electronically, the agency said in a statement.
“Once a taxpayer’s return is processed and if it is not flagged for closer inspection, the expected refund for an e-filed return and choosing direct deposit can be within a couple of weeks. While for paper returns, taxpayers can anticipate their refund within 6-8 weeks,” the statement said.
If you still need to file, here are some free filing options, though you need to meet certain parameters to quality.
If your adjusted gross income is less than $72,000 a year, the IRS and the State of Arizona offer free filing. Just note, each partner has their own eligibility requirements.
For example, with Tax Act, you have to meet the income requirements and be younger than 56.
To help sort through this, the IRS offers a “Free File Online Look-Up Tool.” Just plug in your age, income and answer a few other questions to be matched with the best filing option. Free File Online Look-Up Tool.
You can also check The Arizona Department of Revenues site for free options, https://azdor.gov/e-services/free-electronic-filing-individuals.
Taxes this year have been especially confusing for those on unemployment. Yes, you have to file, but with recent legislation, the first $10,200 will not be taxed at both the state or federal levels.
If you’ve already filed your 2020 returns, you do not have to file an amended return. The IRS is issuing refunds for any overpayment of taxes starting this month.
Also, if you didn’t get a stimulus check, but qualify for one, make sure to file for the Recovery Rebate Credit.
When it comes to scams, the IRS said they’ve seen a few fake emails pretending to be them. Remember, the IRS will never send you any unsolicited email, text messages, or message on social media.