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in response to the coronavirus (covid-19) pandemic, the treasury and the internal revenue service (irs) issued new instructions requiring an extension of the tax filing deadline, moving the deadline usual from April 15 to May 17, 2021. Read more for the relevant details and how they affect your situation.
For information on the third coronavirus relief package, visit our blog post “America’s Bailout: What It Means for You and a Third Stimulus Check.”
2021 Federal Tax Deadline Extensions
the federal tax filing deadline for 2020 taxes has been automatically extended to may 17, 2021. due to severe winter storms, the irs has also extended the tax filing deadline for residents of texas, oklahoma and louisiana until June 15, 2021.
This extension also applies to 2020 tax payments. Individual taxpayers will be able to defer tax payments until the new filing deadline, free of interest and penalties. The new federal tax filing deadline is automatic, so you don’t need to request an extension unless you need more time to file after May 17, 2021.
If you request an extension, you will have until October 15, 2021 to file your taxes. but you will still need to pay any taxes you owe by May 17.
The new federal tax filing deadline does not apply to 2021 estimated tax payments. First and second quarter estimated tax payment deadlines remain April 15, 2021 and June 15, 2021 .
2021 state tax deadline extensions
Many state tax filing deadlines may change to reflect the federal deadline. To find your state’s tax deadline and stay up-to-date on the latest tax deadline information, visit our blog post: “irs announced federal tax filing and payment deadline extension.” /p>
2020 tax deadline extension
In March 2020, the COVID-19 pandemic caused the Treasury and IRS to delay the time Americans were required to file their tax returns, requiring an automatic extension of the tax deadline to March 15. July 2020 for your 2019 taxes. The three-month extension will automatically apply to calendar-year filers, including self-employed individuals, trusts and estates, and c-corporations.
However, taxpayers expecting a refund are encouraged to file their tax returns as soon as possible so they can receive their refunds. The average refund this year has exceeded $2,800, according to the IRS.
While the automatic tax deadline extension does not require you to file Form 4868 to request the extension, you still have this option if you need more time (specifically through October 15, 2020). Remember, as with all extensions you request, you’ll still need to pay any estimated tax liability by July 15 or face underpayment penalties and interest charges.
To understand how individuals (including self-employed individuals, trusts, and estates) and corporations will be affected by this tax deadline extension, read more below.
how are people affected by the tax filing deadline extension?
The tax deferral deadline generally applies to all entities that pay calendar-year taxes, including individuals, self-employed individuals, and trusts and estates. the treasury and the irs announced the deferral of the filing of your federal income tax return, as well as payments of specific federal taxes. this late payment comes free of interest and penalties, for 90 days, until July 15, regardless of the amount owed.
In addition, anyone who needs to make quarterly estimated tax payments also has until July 15 to submit these payments. This means that estimated tax payments for the first and second quarters of fiscal year 2020, which were previously due on April 15 and June 15, are now deferred until July 15.
how are corporations affected by the extension?
Corporations that operate on a calendar year have also been granted an automatic extension to file corporate tax returns and pay any tax due. Just like with individuals, this comes with no interest or penalties for an additional 90 days (April 15-July 15) on any amount due.
will the extension delay my tax refund?
not. The IRS has said that it expects to continue processing refunds as normal and encourages all taxpayers to file as soon as possible. Remember, the sooner you apply, the sooner you’ll receive the refund you’re due.
will the due date for my state taxes be extended too?
Many states have made changes to their filing deadlines to align with the new federal tax deadline extension. however, be sure to check if your status conforms to the new guidance.
Do I still need to make my tax year 2020 first quarter estimated tax payment by April 15?
not. The automatic tax extension deadline applies not only to 2019 tax returns, but also to first quarter estimated tax payments for 2020. These amounts are not due to the IRS until July 15, and this delay does not generate penalties or interest on late payments.
what is the last day to contribute to my retirement account for 2019?
As with other elements of the extension, individuals can wait until July 15, 2020 until July 15, 2020 to make 2019 contributions to their retirement accounts. You are able. You can contribute a maximum of $6,000 to an IRA for 2019, plus an additional $1,000 if you’re age 50 or older.
However, you do not need to wait to file your tax return to make this contribution. If you know how much you’ll contribute before the tax deadline, you can include it on your tax return and make your actual contribution before the new deadline.
does this extension also give me more time to fund my hsa or archer msa for 2019?
yes. As well as the additional time allowed to make retirement account contributions, you may also make contributions to your HSA or Archer MSA by July 15, 2020 for the 2019 tax year. Please note that to ensure accuracy on the form 8889, it’s often best to make any contributions before you file your taxes.
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