Federal Tax and Cost Deadlines for People (Together with Self-employed) Prolonged to Might 17 | 2021

Yesterday (March 17, 2021), the Inside Income Service (IRS) and Treasury Division pushed again the tax submitting deadline by a month. Earnings taxes and funds will now be due Might 17 as an alternative of April 15.

(The knowledge on this article was supplied by the IRS, nevertheless, it’s best to all the time discuss with your tax advisor earlier than making any determination relating to taxes.)

“This continues to be a troublesome time for many individuals, and the IRS desires to proceed to do all the pieces attainable to assist taxpayers navigate the weird circumstances associated to the pandemic, whereas additionally engaged on vital tax administration obligations, Even with the brand new deadline, we urge taxpayers to contemplate submitting as quickly as attainable, particularly those that are owed refunds. Submitting electronically with direct deposit is the quickest solution to get refunds, and it might assist some taxpayers extra rapidly obtain any remaining stimulus funds they might be entitled to.”

IRS Commissioner Chuck Rettig

  • Particular person taxpayers may postpone federal earnings tax funds for the 2020 tax yr due on April 15, 2021, to Might 17, 2021, with out penalties and curiosity, whatever the quantity owed.
  • This postponement applies to particular person taxpayers, together with people who pay self-employment tax. Penalties, curiosity and additions to tax will start to accrue on any remaining unpaid balances as of Might 17, 2021. Particular person taxpayers will routinely keep away from curiosity and penalties on the taxes paid by Might 17.
  • Particular person taxpayers don’t must file any varieties or name the IRS to qualify for this automated federal tax submitting and fee aid.
  • Particular person taxpayers who want extra time to file past the Might 17 deadline can request a submitting extension till Oct. 15 by submitting Type 4868 by means of their tax skilled, tax software program or utilizing the Free File hyperlink on IRS.gov.
  • Submitting Type 4868 provides taxpayers till October 15 to file their 2020 tax return however doesn’t grant an extension of time to pay taxes due. Taxpayers ought to pay their federal earnings tax due by Might 17, 2021, to keep away from curiosity and penalties.

The IRS urges taxpayers who’re due a refund to file as quickly as attainable. Most tax refunds related to e-filed returns are issued inside 21 days.

This aid doesn’t apply to estimated tax funds which are due on April 15, 2021. These funds are nonetheless due on April 15. Taxes should be paid as taxpayers earn or obtain earnings throughout the yr, both by means of withholding or estimated tax funds.

Normally, estimated tax funds are made quarterly to the IRS by individuals whose earnings isn’t topic to earnings tax withholding, together with self-employment earnings, curiosity, dividends, alimony or rental earnings. Most taxpayers routinely have their taxes withheld from their paychecks and submitted to the IRS by their employer.

State tax returns

State submitting and fee deadlines
differ and should not all the time the identical because the federal submitting deadline.

The federal tax submitting deadline postponement to Might 17, 2021, solely applies to particular person federal earnings returns and tax (together with tax on self-employment earnings) funds in any other case due April 15, 2021, not state tax funds or deposits or funds of another kind of federal tax. Taxpayers additionally might want to file earnings tax returns in 42 states plus the District of Columbia. State submitting and fee deadlines differ and should not all the time the identical because the federal submitting deadline.

The IRS urges taxpayers to test with their state tax companies for these particulars.

Credit score: GettyImages

Source link