New year, new tax guidelines. You now have an extra month to file your 2020 taxes
The IRS has pushed the original April 15 deadline to file your taxes this year to May 17. The push back in the deadline came in response to tax provisions in the latest Covid relief package and is intended to give both individual filers and tax preparers, and even the IRS, more time to sort through the changes.
Two exceptions to the extended federal filing deadline exist:
- The April 15 deadline will not be extended for those who pay estimated taxes, including many small businesses. Their payments will still be due on April 15.
- The federal deadline for residents living in Texas, Oklahoma, and Louisiana has been extended to June 15 due to the extremity of the February storms.
You may be eligible for an automatic five-month extension to file your federal taxes as long as you submit your request to the IRS by May 17.
Each individual state will still be able to set their own deadlines. Many states have chosen to also extend their filing deadlines to May 17 to match the federal deadline. The following states have done so: Alabama, Arkansas, California, Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, West Virginia and Wisconsin.
Maryland has extended their deadline to July 15, Hawaii to April 20, Delaware and Iowa to April 30, and DC to July 15.
The remaining states will keep the original filing date of April 15.
Stimulus payments are tax-free. Those who did not receive the first two rounds of payments will be able to receive the money via their federal tax return as long as they claim the refundable Recovery Rebate Credit.
More information regarding the newest tax provisions can be accessed here.
Filing your taxes can be a headache, especially when having to keep track of the many changes still being made to the process due to Covid. Resourcing Edge is here to help make the process a little easier for you. Contact one of our HR Professionals today for additional information.