You may find that you have questions about your 2020 tax return, even after you’ve successfully filed with the IRS. Here are three quick answers to some of the most frequently asked questions at this time of year.
When will I receive my refund?
You can check the status of your refund using the IRS’ online tool. You’ll need to have your Social Security number, your filing status, and the exact refund amount. Once you have the necessary info. at the ready, you can visit irs.gov and click on “Get Your Refund Status.”
Which records can I throw away, and when?
Tax records related to your return should be kept for at least as long as the IRS can audit your return or assess additional taxes—generally speaking, the statute of limitations is three years after your return is filed. As such, you can typically get rid of most records for tax returns from 2017 or earlier (if you filed an extension for your return in 2017 or an earlier year, you should hold on to your records from that year until at least three years from the date you filed the extended return).
For taxpayers who understate their gross income by more than 25%, however, the statute of limitations extends to six years.
Certain tax-related records should also be kept for longer. Actual tax returns, for instance, should be kept indefinitely, as they allow you to prove that you filed legitimate returns to the IRS. (If you didn’t file a return or you filed a fraudulent one, there’s no statute of limitations for an audit.)
Records associated with retirement accounts should also be kept until three (or six) years after the account is depleted and the last withdrawal is reported on your tax return. In addition, records related to real estate or investments should be retained as long as you own the asset and for at least three (or six) years after you sell the asset and report the sale on your tax return.
Can I still collect a refund if I overlooked claiming a tax break?
Generally speaking, it’s possible to file an amended tax return and claim a refund. However, this must be done within three years after the date you filed your original return or within two years after the date you paid the tax, depending on which is later.
There are also some instances when you’ll have longer to file an amended return. When it comes to bad debts, for example, the statute of limitations is longer than the usual limit of three years. Tax returns can usually be amended to claim a bad debt for seven years from the due date of your tax return in the year that the debt became worthless.
Contact us today
If you have questions about receiving your refund, retaining tax records, or filing an amended return, contact us. We’re happy to help at tax filing time—and throughout the rest of the year.