Business, Chicago News and Media

IRS Announced Federal Tax Filing and Payment Deadline Extension

What is the federal tax deadline? (Click here for state tax deadlines)

The federal tax filing deadline has been extended to May 17, 2021.  

The IRS has also extended the federal tax deadline to June 15, 2021 for residents of Texas, Oklahoma and Louisiana due to severe storms.  You can learn more about the tax relief available here: Texas Relief, Oklahoma Tax Relief, and Louisiana Tax Relief.

Taxpayers are encouraged to file their taxes now to get their refund ASAP. 

While you now have more time to file, the sooner you do it, the sooner you will get your refund! And we know money in your pocket is more important now than ever. 

Most people receive a tax refund each year and last year the average amount was close to $3,000, for many, their largest paycheck of the year. During times like this, a $3,000 refund is much needed money. 

Also, if you didn’t get a stimulus payment or only received a partial stimulus payment, claiming the Recovery Rebate Credit by filing a tax return is the only way to get your additional money. For families that haven’t received their first and second stimulus payments this could be up to an additional $1,800 per taxpayer. 

So here is what you need to know about the tax deadline extension announcement:

  • Do I need to file an extension to file past April 15?  No, you do not need to take any action. The May 17 extension applies to all taxpayers automatically.
  • Will the extension of the tax deadline delay my tax refund? No, the IRS expects to continue to process refunds as normal but encourages all taxpayers to file now.
  • Will the deadline for my state taxes also be extended? That depends on your state. Many may conform to the new May 17 tax deadline, but it will take some time for states to make that decision. To find out the deadline in your state, see below.
  • Does this extension apply to 2021 quarterly estimated tax payments? No, this extension does not apply to first and second quarter 2021 estimated income tax payment deadlines. Those remain April 15, 2021 and June 15, 2021. 

Does the extended deadline mean I have more time to pay? Does the extended deadline allow me to pay my balance due before May 17th?

The extension of the federal tax filing deadline also applies to 2020 tax payments. 

Taxpayers that owe money can defer federal tax payments for Tax Year 2020, interest free and penalty free until May 17. This deferment applies to all individual taxpayers. These taxpayers can defer tax year 2020 federal tax payments regardless of the amount owed until the new deadline. This only applies to individual 1040 tax returns, not business tax filings.

Deferment of federal tax payments means that if you owe money on your federal taxes, you will get more time to pay what you owe. 

  • How do I know if I qualify for the extended payment deadline? And do I need to file an extension to get it? Any individual taxpayer with a Federal Tax Payment related to their 2020 taxes can defer their tax payment, free of penalties and interest.
  • What do I do if I already filed my taxes and scheduled my payment for April 15? We are waiting for guidance from the IRS on what you need to do to change your scheduled payment date. Stay tuned.
  • What if I need more time past the May 17 deadline to pay? If you need additional time, beyond May 17, you will need to file an extension. An extension will give you until October 15, 2021 to file your taxes, but you will still need to pay any taxes owed by May 17. Payments after May 17 will be subject to penalties and interest. The IRS also has installment plans available, you can find out more here

Continue to check back here for the most up to date tax deadline information and related changes as we await final IRS guidance.

Read the story from where it originally appeared

Disclaimer: “The views/contents expressed in this article are the sole responsibility of the author(s) and do not necessarily reflect those of sankofaonline.com. sankofaonline.com will not be responsible or liable for any inaccurate or incorrect statements contained in this article. Our site offers content for informational purposes only. Sankofaonline.com does not provide medical advice, diagnosis, treatment. Always consult with a physician or healthcare professional.”

Leave a Comment

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.