For the second year in a row, the U.S. Treasury Department and Internal Revenue Service extended the tax filing deadline for individuals, due to the COVID-19 pandemic.
The federal income tax filing deadline for individuals for the 2020 tax year is now May 17, 2021, rather than April 15, 2021. According to IRS Commissioner Chuck Rettig, the change was made because many people are still experiencing financial difficulties as a result of the pandemic, and the IRS wants to make sure it’s taking appropriate measures to help taxpayers get through these unusual and unprecedented financial circumstances.
Rettig mentioned that even with this new deadline, people are still encouraged to file as soon as possible, especially if they know they’re going to be owed tax refunds. The IRS also continues to recommend filing electronically with direct deposit as their preferred method of receiving payment, so they can get their refunds as soon as possible, along with any stimulus payments they are still owed.
Qualification
Individual taxpayers do not need to file any extra forms or call the IRS to qualify for the new deadline. However, if people still need time beyond the May 17 deadline, they can still request a filing extension that gives them until October 15 by filing Form 4868. Note that such an extension is only for turning in their 2020 tax return—it does not grant an extension for paying taxes owed to the government, meaning taxpayersfiling for an extension may need to make estimated payments by May 17 to avoid penalties. Keep in mind, though, that estimated tax payments due April 15, 2021 are still due by that day; there is no extension granted for those payments.
In addition, as alluded to above, individual taxpayers can postpone federal income tax payments due on April 15 to May 17. Again, there is no application or additional form required to qualify for this postponement; it automatically applies to all taxpayers.
Most people whofile their tax returns electronically will receive their refunds within 21 days.
Finally, the tax filing deadline postponement to May 17 only applies to individual federal income returns and tax payments due April 15, not state tax payments or deposits.
We recommend speaking to a tax preparation professional if you have not already to make sure your taxes are all in order for the 2020 tax season, especially given the financial challenges of the pandemic. Contact us at MCG Solutions for more information!