Tax season may be months away, but like most things this year the 2020 filing season is going to hit differently for many people.
With the need for unemployment assistance sky high during the coronavirus crisis, a first of a lifetime need for so many, NBC Connecticut doesn’t want you or your loved ones to be surprised by what you could owe in April.
DID I HAVE TAXES WITHHELD FROM MY UNEMPLOYMENT INSURANCE? HOW CAN I CHECK?
With so many in need of every penny from unemployment insurance during the pandemic, some people chose to not get withholdings taken out of their checks. Because these tax dollars must be paid to federal or state tax authorities, you could owe money come Tax Day.
How to check your withholding status? Log in to the CT Department of Labor Tax and Benefits System, navigate to the Benefits Maintenance section and click Payment Options.
To change your tax withholding, click here: Change Tax Withholding
HOW DO I FIND OUT HOW MUCH I OWE?
You can have a tax professional run a tax projection, but that could cost you.
You can also use the IRS Tax Withholding Estimator.
WHAT IF I CAN'T AFFORD TO PAY COME TAX DAY?
If you learn you will owe money and you can’t afford it, experts say you should NOT avoid filing your taxes. Penalties will only be worse and compound the problem.
The CT Department of Revenue Services “Priority One Taxpayer Assistance Program” is available to businesses and individuals who may be unable to meet their current state tax obligations due to the pandemic. You’ll be able to speak with a tax professional to tailor a solution that fits your specific situation and determine what relief may be available.
DRS Priority One Helpline: 860-541-7650
Representatives are available Monday to Friday, 8:30 a.m. – 4:30 p.m.
Taxpayers may also contact DRS via email at: email@example.com
Taxpayers are encouraged to provide as much information as possible about their situation and the relief that is being sought.
As for federal taxes, the IRS says if you cannot pay the full amount due April 15, pay what you can and the rest can be paid over time with an installment agreement.
To find out if you qualify for a payment plan, click here: IRS Online Payment Agreement Application
You will be charged a setup fee for payment plans longer than 120 days. The fee may be waived or reimbursed if certain conditions are met.
You may also be able to settle your debt for less than the full amount with an Offer in Compromise. Note that there is a $205 application fee.
The third option is to ask the IRS to temporarily delay collection until your financial situation improves. Be aware that penalties and interest continue to accrue until you've paid off the debt in full. To find out if you qualify, call the IRS at 800-829-1040 and have your financial information available.