How can you know if you owe money to the IRS?

How can you know if you owe money to the IRS?

In such a particular year, keeping track of accounts may have become complicated. How can you be sure that you are up to date with the IRS and thus avoid charging interest and penalties?

This year tax filing season was extended till May 17, but there are still people who have not filed a tax return or paid their taxes, and after a very unusual year as was 2020, you may not be sure whether you owe taxes or not to the IRS. If this is your case, how can you find out?

If you have taxes withheld from your paycheck, you probably won’t have to pay taxes unless there was some kind of mistake, or you generated extra income and it wasn’t subject to withholding or you received enhanced unemployment benefits (more than $10.200) and didn’t know it was taxable income. If on the other hand, you are self-employed or own a business you may have underestimated your tax liability.

If you owe back taxes to the IRS, it is important that you know it to start paying them immediately, since, if you do not, you could be charged interest and penalties.

If you need to find out if you owe the agency money, here are three ways to access the information:

1 – The IRS may send you a notice in the mail to let you know that you owe them money. To avoid scammers, remember that the IRS will never send you emails, text messages, or contact you by phone or social media, according to information from U.S. News.

2 – You can view your tax account on the IRS.gov website. Your online tax account will allow you to see the amount you owe, and make a payment agreement online. You can even review the last 18 months of payment history.

3 – You can also contact the IRS at 1-800-829-1040 and they will tell you how much money you owe them. Keep in mind that many people call this line, so it may take a while for your call to be answered by a real person.

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