New Stimulus Package Extends Federal Income Tax Deadlines for Individuals

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The federal government has extended the 2020 filing deadline for individual taxpayers from April 15th, 2021 to May 17th, 2021. The individual payment deadline has also been extended to May 17th, 2021. Taxpayers can now make payments by the May deadline without any penalties and interest accumulating, regardless of the amount owed. This deadline also applies to self-employment tax.

These extensions will automatically be applied to taxpayers and do not require any additional actions on the individual’s end. If an individual wishes to file an extension beyond the May 17th deadline, they can request an extension until October 15th, 2021 by contacting tax professionals, tax software or going to IRS.gov to file out Form 4868 to request this extension. Keep in mind, however, the October extension is for the filing of 2020 taxes, not tax payments. Any payments made after the May 17th deadline will begin to accrue penalties and interest.

For people who have estimated tax payments due on April 15, 2021, these will still need to be paid by that deadline. These tax payments are made quarterly to the IRS by those whose income isn’t subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income.

State Tax Returns

This extension only applies to federal income taxes and does not apply to state tax payments, deposits or payments of any other type of federal tax. Each state has its own deadline that is separate from the federal filing deadline. To find out about your state’s specific deadline, please check your state tax agencies for more information.

Taxpayers in Texas, Louisiana and Oklahoma Receiving Disaster Tax Relief

Any individuals receiving the disaster tax extension the government issued for June 15th, 2021 will still be able to file the various individual and business tax returns and make tax payments by the June deadline.

Although the deadline has been federally extended for taxpayers, the IRS still urges people who are owed returns to file as soon as possible. Tax returns that are filed electronically usually will be received 21 days after filing.

For more information about the IRS tax extension, visit their website to learn more.

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