The deadline to file and pay taxes has been extended for the first time in our nation’s history to July 15, 2020. Over the last couple of weeks our collective attention has shifted to COVID-19 (“Coronavirus”). Congress scurried to pass much needed financial relief that will, among other things, give every adult $1,200 and child $600. This, however, may not be the biggest check that Americans are eligible to receive in the coming weeks.
According to the IRS, 111.9 million out of the 151.4 million individuals (73.5%) who filed their tax return in 2018 qualified for a refund, with the average refund amounting to $2,899. The average tax refund far exceeds the emergency payments that will be issued in the coming weeks.
According to a CreditKarma survey, 44% of respondents reported that their tax refund is their biggest paycheck of the year. 24% of respondents say they depend on their refunds to the point that not getting one would leave them in a dire financial situation, and that figure was reported before the Coronavirus pandemic. The extension to file and pay taxes is helpful to those who expect to owe money to the IRS. For most, however, it is beneficial to file your taxes now and claim your tax refund as soon as possible.
Reporting cryptocurrency taxes not only ensures you avoid costly fines and penalties for failing to report taxable transactions, but it may further increase your tax refund. To date, the majority of taxpayers on TaxBit’s platform ended the 2019 tax year with net capital losses, which results in an increased tax refund. The IRS provides tax relief by allowing taxpayers to deduct up to $3,000 in net capital losses a year, as well as allowing taxpayers to carry forward any excess losses above that amount into future tax years.
TaxBit’s software will show you what your cryptocurrency gains or losses are for every tax year, free of charge (14-day, risk-free trial period). If you lost money on your cryptocurrency then TaxBit can help you report your capital losses and increase your tax refund.
For many Americans their tax refund will be their biggest check of the year. Stay healthy, stay safe, and claim your tax refund now!
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