The 2021 Tax Deadline Extension: Everything You Need To Know
OVERVIEW
In response to the Coronavirus pandemic, the Treasury and IRS issued new instructions that call for a tax deadline extension, moving the customary April 15 deadline to May 17, 2021. Read more to learn about the relevant details and how they impact your situation.
For information on the third coronavirus relief package, please visit our American Rescue Plan: What Does it Mean for You and a Third Stimulus Check blog post.
Will The Irs Tax Deadline Be Extended
The IRS did not return Money’s request for comment. But current IRS Commissioner Chuck Rettig said in February there were no plans to extend the deadline, adding that it “it creates a lot of confusion for taxpayers” and “backs up” the IRS.
Bill Smith, a managing director for CBIZ MHM’s National Tax Office, points to Rettig’s remarks as evidence the date won’t be moved. He also says this year’s filing season doesn’t pose the same problems as last year’s did.
“There’s a lot going on, but don’t expect them to put off the April 15 filing deadline,” Smith adds.
Regardless, if you need more time to do your taxes, you can always request an extension. This typically delays your filing deadline to Oct. 15. But remember: If you owe the government money, you still have to pay on time.
This story has been updated to reflect that President Joe Biden signed the American Rescue Plan into law.
Free File Fillable Forms
Free File Fillable Forms is a sister service of IRS Free File it’s open to all taxpayers, including those who made more than $73,000 in 2021. Like IRS Free File, it’s a completely free online-filing option.
A seasonal program, Free File Fillable Forms is open every year from roughly mid-January to mid-October. It’s an online repository of every and any form you’ll need for a federal return. Once you’re finished with your work, you may electronically sign the return, and submit it via the site.
Free File Fillable Forms definitely has its limitations: It doesn’t give advice it doesn’t do state returns it doesn’t allow you to do federal returns for anything but the current tax year it doesn’t let you do revisions once you’ve filed and, as the IRS cautions, it doesn’t do an “extensive” math check on your numbers.
The site is currently closed but should open again soon for the 2022 tax year.
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When Are State Taxes Due
Of the 41 states that levy income tax, most are adhering to the April 18 deadline. There are some exceptions.
| State | |
| Louisiana | May 15 |
Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — have no state income taxes.
Check with your state department of revenue for the most current information and deadlines.
Free File To Stay Open Until Nov 17 To Help Refund Filers Eligible For Stimulus Child Tax Credit Eitc
Starting this week, the Internal Revenue Service is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits depending on their personal and family situation. The special reminder letters, which will be arriving in mailboxes over the next few weeks, are being sent to people who appear to qualify for the Child Tax Credit, Recovery Rebate Credit or Earned Income Tax Credit but haven’t yet filed a 2021 return to claim them. The letter, printed in both English and Spanish, provides a brief overview of each of these three credits.
These and other tax benefits were expanded under last year’s American Rescue Plan Act and other recent legislation. Even so, the only way to get the valuable benefits is to file a 2021 tax return.
Often, individuals and families can get these expanded tax benefits, even if they have little or no income from a job, business or other source. This means that many people who don’t normally need to file a tax return should do so this year, even if they haven’t been required to file in recent years.
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Retirement Account Due Dates
If you’re trying to save money for retirement, you might have another due date to worry about today. First, self-employed people who requested a tax filing extension before April 18 must set up or make 2021 contributions to a Simplified Employee Pension IRA by the end of the day.
Retirement savers who contributed too much to a traditional or Roth IRA for 2021 also have until the end of today to fix their mistake. If you asked to extend the due date for your tax return, today is the last day to withdraw any excess 2021 IRA contributions . If you make it in time, you can avoid the IRS’s 6% excessive-contribution penalty.
Tax Day For Individuals Extended To May 1: Treasury Irs Extend Filing And Payment Deadline
IR-2021-59, March 17, 2021
WASHINGTON The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.
“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. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”
Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
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Tax Deadlines: April To June
- :Deadline for employees who earned more than $20 in tip income in March to report this income to their employers.
- : Deadline for household employers who paid $2,300 or more in wages in 2021 to file Schedule H for Form 1040.
- : All individuals must file their 2021 personal tax returns, or Form 1040 or Form 1040-SR by this date. This is also the deadline to request an automatic extension for an extra six months to file your return, and for payment of any tax due.
- : Deadline for filing 2021 personal tax returns if you live in Maine or Massachusetts.
- May 10, 2022: Deadline for employees who earned more than $20 in tip income in April to report this income to their employers.
- : Deadline for employees who earned more than $20 in tip income in May to report this income to their employers.
- :Deadline for second-quarter estimated tax payments for the 2021 tax year.
- :Deadline for U.S. citizens living abroad to file individual tax returns or file Form 4868 for an automatic four-month extension.
Can I File An Extension
As in past years, you can request an extension if you need more time to prepare and file your 2021 return. Before the April 18, 2022, deadline, you must fill out and submit Form 4868, the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. At the time you file Form 4868, you must also pay the estimated income tax you owe to avoid penalties and interest, the IRS says.
Generally, taxpayers are granted an automatic six-month extension to file, or two months if theyre out of the country, in which case the extension also applies to payment of taxes owed.
To qualify for an extension, you must file Form 4868 before April 18, 2022. You will not be notified unless your request is denied.
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When Are 2023 Tax Extensions Due
You have right up until tax day to file for an extension. For individuals, that means you can still file for a tax extension right on April 18, 2023. The same goes for businesses: S corps and partnerships can still get an extension on March 15, and the last day for C corps to file for an extension is April 18.
What Deadlines Mean For Taxpayers In Those States
Taxpayers who live in states with earlier filing deadlines than federal Tax Day may not get to take advantage of the federal extension, said Ryan Losi, a CPA with Piascik based in Richmond, Virginia.
“A lot of states, their starting point is the federal AGI,” Losi said, referring to adjusted gross income calculated on an IRS Form 1040. That’s usually why federal returns are due before, or at the same time, as state returns, he added.
“To do the state you’ve got to do your federal anyway,” said Losi.
Of course, the states with earlier filing dates could still push back their deadlines to match or come after the May 17 federal Tax Day.
Still, taxpayers should keep these different deadlines in mind and work to prepare their returns sooner rather than later. Beyond the misaligned tax filing dates in some states, the IRS extension didn’t apply to quarterly estimated tax payments, generally made by those with self-employment income, interest, dividends, alimony or rental income. The first quarterly payment is still due April 15.
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There’s also confusion around whether the May 17 federal deadline also applies to individual retirement account or health savings account contributions for 2020. Last year, when the tax-filing season was also extended due to the Covid-19 pandemic, almost all deadlines were pushed back to the same day , 2020.
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Individual Tax Returns Due
This is the deadline to file Individual tax returns . If your income is below $66,000 for the tax year, you can e-file for free using IRS Free File. If your income was above that, you can use the IRSâ free, fillable forms.
If youâre a sole proprietor filing Schedule C on your personal tax returns, the April 18, 2023 deadline applies to you too.
April 18 is also the deadline to file for an extension to file your individual tax return.
Time To Make Contributions To Iras And Health Savings Accounts Extended To May 17
In extending the deadline to file Form 1040 series returns to May 17, the IRS is automatically postponing to the same date the time for individuals to make 2020 contributions to their individual retirement arrangements , health savings accounts , Archer Medical Savings Accounts , and Coverdell education savings accounts . This postponement also automatically postpones to May 17, 2021, the time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. Notice 2021-21 also postpones the due date for Form 5498 series returns related to these accounts to June 30, 2021.
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Should I File My Taxes Early
If you have all your paperwork in order and you’re getting a refund, then it makes sense to file as soon as possible, said Joe Burhmann, senior financial planning consultant at eMoney Advisor. “From a planning perspective, the IRS likes that.” If you owe money, though, you might want to wait a bit.
“It gives you a bit more time to hold onto your money,” Burhmann said. “And it gives you time to figure out how to pay whether that means getting a loan, putting it on credit cards or something else.”
Even if you’re not filing immediately, you should prepare your taxes as soon as possible.
“Knowledge is always a good thing to have,” Burhmann said. “Make sure you’ve gotten your 1099 and know what you’re going to be dealing with.”
Max Out Your 401 By Dec 31
Contributions to a traditional 401 reduce your total taxable income for the year.
For example, lets say you make $65,000 a year and put $19,500 into your 401. Instead of paying income taxes on the entire $65,000 you earned, youll only owe taxes on $45,500 of your salary. In other words, saving for the future lets you shield $19,500 from taxes . Many employers offer to match a portion of what you save, meaning that if you contribute enough to your account, you’ll also nab some free money.
» MORE:Estimate your tax bill with our free tax calculator
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The Tax Deadline Has Been Extended But You May Not Want To Wait
Season to pay Tax, Budget, and Tax planning concept. Business woman wear glasses calculating annual … tax and using mobile phone. Calendar 2021 and personal income tax form placed on home office desk.
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For the second year in a row, you have additional time to file your federal taxes. On March 17th, the Treasury Department and Internal Revenue Service announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021 to May 17, 2021. This is to help taxpayers navigate the unusual circumstances related to the pandemic. In the announcement, IRS Commissioner Chuck Rettig stated “Even with the new deadline, we urge taxpayers to consider filing as soon as possible. Just because the filing date has been pushed back does not mean that is the right move for you.
th is still a relevant deadline to many taxpayers. The moving of the federal deadline for filing does not mean everything due on April 15th moved. Estimated tax payments are still due on April 15th. While 41 states moved their deadline last year to line up with the federal date, some states m ay still have April 15th as their 2020 deadline. Check with your states tax administrator to verify when your state return is due.
Deadline To Furnish Extended
IRS Notice 2020-76 automatically extends the deadline for furnishing the 2020 Form 1095-C to employees. Employers subject to the ACA employer shared responsibility mandate must furnish a completed 2020 Form 1095-C to employees no later than March 2, 2021 this is an extension from the original January 31, 2021. Due to this automatic extension, the IRS will not grant additional time to furnish forms to employees.
Employers who file information returns electronically to the IRS must file the 2020 Forms 1094 and 1095 by March 31, 2021. If filing paper forms, the deadline for the 2020 forms is February 28, 2021.
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How To File Your Tax Return Electronically
You might want to e-file your late return if you haven’t missed that deadline as well. Many taxpayers can e-file at IRS Free File if their AGIs were under $73,000 in 2021. Some other rules can apply as well, imposed by the individual software providers that participate in the Free File Alliance.
The IRS will accept e-filed returns until November. It will announce the exact November cutoff date sometime in October 2022.
How To File A Tax Extension
If you need even more time to complete your 2022 federal returns you can request an extension to by filing Form 4868 through your tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until October 16th, 2023 to file their 2022 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by April 17, 2023, to avoid interest and penalties.
If you mail in your return, it must be postmarked on or before April 17, 2023, or sooner. Heres a tax refund schedule to give you an idea of when to expect your refund after youve filed. Its also important to note that the income tax refund schedule remains unchanged. This serves as an incentive for people to still file sooner rather than later.
When you file your federal extension you typically do not have to file anything else with your state. Most states give you an automatic 6-month extension if you do not file your taxes on time. You should check with your state to be sure, though.
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When Can I Expect My Refund
Once the IRS begins accepting returns, the agency says taxpayers who file electronically and are due a refund can expect it within 21 days — if they choose direct deposit and there are no issues with their return. By law, the agency cannot issue refunds involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February, in order to help prevent fraudulent refunds from being issued.
Estimated Tax Payment Due April 15
Notice 2021-21, issued today does not alter the April 15, 2021, deadline for estimated tax payments these payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn’t subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.
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