The IRS extended the individual federal income tax filing deadline for the 2020 tax year from April 15th to May 17th. The postponement provides needed time for tax preparers and taxpayers to navigate the unique and challenging circumstances related to the pandemic. Since the announcement, additional details have become available, and it is important to understand how they may impact you. Based on information available on March 24th, the summary below highlights the changes to filing and payment details for individual taxpayers.
What has changed:
- 2020 federal income tax return filing deadline is extended to May 17, 2021
- 2020 federal income tax payment due date is postponed to May 17th without penalties and interest
- Extension provides additional time to make Individual Retirement Account (IRA) contributions
- Extension provides additional time for filers that currently qualify for stimulus checks but had not qualified based on prior returns or information the IRS had on file
What has not changed:
- Estimated payments related to the 2021 tax year remain due on April 15th, 2021
- State tax filing and payment deadlines vary and may still be April 15th
- Do not assume a change; check your state’s tax website
- Some states have changed deadlines. For example: CA, CT, NY & NJ
- Pay attention to state Q1 2021 estimated tax payment deadlines, as they may not be extended
- The IRS urges taxpayers due a refund to file as soon as possible
While these changes will provide relief to many taxpayers, they may complicate the process for others. We encourage you to consult with your tax professional for a full understanding of the impacts these changes may have on your personal situation.