With the April 15 tax filing deadline right around the corner, here are answers to some common tax questions.
1. When will I get my refund?
The pandemic and additional stimulus payments will, in all probability, delay refund payments. But as of now, here are the “normal” wait times to receive your refund:
- E-file return with a direct deposit – 1 to 3 weeks
- E-file return with a mailed check – 1 month
- Paper file return with a direct deposit – 3 weeks
- Paper file return with a mailed check – 2 months
NOTE: If you want exact information on the status of YOUR refund go to www.irs.gov/refund and follow their instructions.
2. Can I still get a stimulus payment?
If you are still waiting on either the 2020 or 2021 stimulus payment, file your 2020 tax return and claim the Recovery Rebate Credit. You will need to know how much money you received during the year to claim anything more that you may be owed.
3. Can I correct a tax form that has an incorrect dollar amount?
If you receive a tax document with incorrect information, contact the company that issued the document and try to get it fixed immediately. If you can’t get a corrected form right away, include both the incorrect form and the correct dollar amount when turning in your tax documents to have your return prepared.
4. Can I deduct charitable contributions if I don’t itemize?
In 2020 you can claim a $300 charitable contribution deduction regardless of whether or not you itemize your deductions. If you missed this window of this above-the-line donation in 2020, never fear as it is also available in 2021 with an increased limit to $600 for married couples. So save donation receipts! Many states allow charitable donations to be claimed even for filers who do not itemize. Consult with your tax professional.
Have a tax-related question? Email it to us at Wisdom@WisdomWS.com
Andrea L. Blackwelder, CFP®, ChFC, CDFA® and Joseph D. Clemens, CFP®, EA are the founders and partners of Wisdom Wealth Strategies. Their shared passion is simple: to bring financial empowerment, understanding, and peace-of mind to people who wish to improve their financial future, build wealth for their families, and achieve financial independence. Click here to find out more about how you can work with the Denver Financial Advisors at Wisdom Wealth Strategies.