Don’t worry, you’ve still got plenty of time to US Treasury and IRS announced on March 17 they’re to May 17 in order to “help taxpayers navigate the unusual circumstances related to the pandemic.”if you haven’t yet. The
The IRS starteda bit later this year, giving taxpayers fewer days to prepare and file their taxes than in previous years. The IRS is currently immersed in tax season with processing returns and , while also at the same time. However, the extension will give the agency, as well as individuals, more time to prepare and process tax forms.
The IRS is also dealing with claims forthis year, which are linked to taxes. Plus, could be used to determine how much money you’ll get in a . In addition to that, the IRS will have to start preparing for the , which are for — assuming they have . Here’s what you need to know about this year’s Tax Day and how moving it back could affect you in more ways than one.
Does the new IRS May 17 tax deadline delay mean I can wait to pay my taxes, too?
Yes, without penalty. According to the IRS, “individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed.”
If you need time beyond May 17, you can, which gives you more time to complete and send in your paperwork to the IRS. The IRS said individual taxpayers do not need to file forms or call the IRS to qualify for the extension.
The new extension doesn’t get you off the hook for estimated tax payments, however. The IRS said the May 17 deadline does not apply to those who make estimated payments, which are still due on April 15.
According to Barry Melancon, president and CEO of AICPA, a professional organization for certified public accountants, the postponement doesn’t go far enough. “This IRS extension does not extend to the millions of small business owners and individuals who pay estimated taxes,” he said. “This selective decision by the IRS unfortunately creates more bureaucracy and confusion and is out of sync with real world stresses that taxpayers, tax practitioners and small businesses are dealing with.”
Does the new tax deadline affect the third stimulus checks?
Since stimulus payments and, pushing back the tax date could affect the .
First, the IRS uses, if processed, when it determines the amount you’d get in your . Specifically, the IRS looks at the , on your 2020 form to help figure out your payment, using a . But the tax agency will use your 2019 return if your 2020 taxes haven’t been accepted by the time your payment is sent. That could work in your favor if your income from 2019 was lower than your income from 2020. However, if your 2020 tax return would , like if you , you’d want to file as soon as possible, so the IRS processes your 2020 taxes before releasing .
Postponing the tax deadline, but again, it means you have to any missing stimulus money, and if there’s a difference between your 2019 and 2020 taxes, you’d have to wait .
What a new tax deadline could mean for any missing stimulus money
Your federal tax returns this year are also how you’ll recover any money the IRS owes you from the first two. If you either didn’t get a payment or got less than you were , you can as a rebate credit when you file this year. — those who aren’t normally required to file a tax return. If you wait to file your taxes closer to a new, later due date, you’re also , which will be bundled .
Will my state’s tax deadline be the same as the new federal deadline?
Last year, all states that collect personal income tax shifted their filing deadlines to around July 15, 2020, which was the federal tax deadline, according to the American Institute of CPAs. Since the IRS postponed the filing deadline again this year, we expect states to follow — and some already have.
For more details on taxes this year, we spell out the, and when you file your taxes.