The IRS has extended the federal tax-filing deadline due to the ongoing pandemic. Here's how the new date affects your taxes and stimulus check.
The Internal Revenue Service and the Treasury Department announced that the tax filing deadline will be pushed back a month, with income taxes and payments due on May 17 instead of April 15.
The postponement comes as the IRS battles a huge backlog that has prevented it from fully processing nearly 24 million tax filings from individuals and companies since the start of the fiscal year.
“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig in a statement.
Taxpayers should also postpone paying any money owed to the IRS until May 17. If taxpayers still need more time to file their returns, they can file Form 4868 to request an extension (but not for taxes owed) until Oct. 15.
The extended deadline only applies to federal income tax returns and taxes, so taxpayers should check to see if their state tax due dates have changed. Not all states observe the federal government's filing deadline.
The deadline for estimated quarterly payments is still April 15.
The IRS will issue more information about the extended filing season in the coming days, according to the tax collector.
The agency was tasked with sending another round of stimulus payments while also processing tax returns and refunds following the passage of the $1.9 trillion American Rescue Plan, which meant the agency was tasked with sending another round of stimulus payments while also processing tax returns and refunds.
President Joe Biden signed the latest coronavirus relief bill into law on March 11, right in the middle of tax season, adding a number of changes to an already complicated filing season for many.
For filers with an adjusted gross income of less than $150,000 in 2020, the first $10,200 of unemployment income, or $20,400 for married couples filing jointly, is tax-free (for both singles and couples).
The income tax credit was also increased to $3,000 per year for children aged 6 to 17 and $3,600 per year for those under the age of 6. As early as this summer, parents could begin receiving a monthly portion of the credit.
Accountants are also waiting for IRS guidance on a number of issues that will affect this tax season. IRS Commissioner Charles Rettig will testify at a House Ways and Means Oversight Subcommittee hearing on the 2021 tax-filing season.
Aside from the tax changes brought about by the latest Covid bill, filing a tax return is especially important this year because it's the only way to recoup stimulus payments you may have been eligible for but didn't receive.
If your circumstances have changed, or if you are a non-filer, you must file a tax return with the IRS and claim the recovery rebate credit to receive the economic impact payments you are owed, as well as to ensure that the IRS has your information on file for any future payments.
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