It’s that time of the year again - Tax Season.
It’s a particularly difficult one this year because of the unfortunate events brought on by the COVID-19 pandemic.
Nonetheless, everyone is wondering what’s the tax filing deadline for 2020 and will it impact the IRA contribution deadline. We got you covered!
Here’s the good news: The IRS announced that the federal due date to file your 2020 tax return has been extended to May 17, 2021 and you do not need to file any special form to take advantage of the extension.
This extension applies to individual taxpayers and those who pay self-employment tax. The extension is penalty and interest-free, regardless of what you owe! If you need additional time beyond the May 17 deadline to file your taxes, you can request an extension until Oct. 15 by filing Form 4868. Consult with your tax professional or tax preparers if you need the additional extension.
The IRA contribution deadline will also be extended to May 17. The IRS has stated that they will provide more details in the coming days.
If you are expecting a 2020 income tax refund, the IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.
Here’s the bad news: If you are making estimated tax payments, you still need to do it quickly. The April 15, filing and payment deadlines still apply.
State Income Taxes Due Date
Although the IRS extended the federal tax deadline, this does not mean that your state taxes have been extended. Check with your state tax agencies to verify when these are due.