Due to an overwhelming amount of pandemic-related tax changes, the IRS has decided to extend the tax filing deadline to May 17. This delay is necessary as many Americans will need the flexibility and time to gather what they need for the 2020 tax preparation process. This change will happen automatically; no extra paperwork is needed to confirm it.
What does this mean if you owe money?
This delay also applies to taxpayers who owe the IRS money. Remember, you have until May 17 to pay your tax.
You can file an extension, however you will pay additional penalties and interest if you owe money and don’t send it in with your extension. You can request an extension until October 15, 2021, by filing Form 4868 through the IRS.
Does this filing delay apply to state taxes as well?
No. This new deadline is only for individual federal income taxes and returns. But we did see states push their deadlines last year due to the pandemic so this year might follow suit once again. Be sure to check with your state tax agencies to see if your deadline has changed. Maryland has already extended their income tax filing deadline to July 15.
What if you are expecting money back?
Although this new delay gives you more time to file your taxes, don’t wait! The quickest way to get your refund is to file electronically with direct deposit so the amount can go straight into your bank account. Your tax refund typically issued within 21 days through the e-file process. Using direct deposit can also help you receive any stimulus payments that you might have been eligible for that you did not receive already.
For more information, questions, or tax preparation help, feel free to reach out to us at 410-224-2600. We are a family-owned business that serves start-ups, small to medium-sized businesses, women-owned businesses, individuals, high net worth families, millennials and more! Don’t forget we’re also now offering virtual appointments. Book yours today: https://go.oncehub.com/EmeraldFinancialPartners