Important Due Dates For Filing Your 2020 Tax Return And Making Payments
The Balance / Catherine Song
The Internal Revenue Service typically begins processing tax returns in late January, but the first day to file 2020 tax returns was pushed back to February 12, 2021 because of pandemic-related issues.
The deadline for filing a personal 2020 income tax return was extended to May 17, 2021. This also extends the deadline for any money owed without incurring a late fee or interest penalties. It does not affect estimated quarterly tax payments that are due on April 15, 2021, for business owners and those who file as independent workers.
What If You Miss A Deadline
Missing a tax filing deadline isnt the end of the world, but you should be aware that the IRS begins to assess fines and penalties on the first day of tax delinquency. If you can file but do not have sufficient funds to pay the tax, file promptly anywaythis will avoid potentially costly fines and penalties for late filing. Often you can work out an installment arrangement to address the unpaid balance. Interest penalties on installment payments will be assessed, but these are far less than the penalties for late filing or non-filing.
Similarly, if you miss an estimated quarterly tax payment filing deadline, file as soon as you can. There may still be a penalty, but paying as promptly as possible can help minimize the penalty .
Of course, things are different if you missed a tax filing and you are owed a refund because you overpaid your taxes. Usually there is no penalty for filing a late return, however you will want to file nevertheless so that you can collect your refund. Barring unusual circumstances, you will have three years to file a return and collect your refund. After three years, any money owed to you goes to the U.S. Treasury.
Greenback Team Is Here To Help
The Greenback Team is fortunate to be a 100% remote team distributed around the world 11 countries and 12 states to be exact. And as many of us are expats ourselves, were here to keep you up-to-date and help you navigate all the changes related to your taxes.
We currently recommend that you file your expat taxes as soon as possible, particularly if you think you may be owed a refund. If you do owe taxes, you can file now and hold off on making a payment until the new extended deadline. Planning ahead will help you manage finances and reduce stress during this uncertain time.
Events and circumstances have been changing rapidly, and it is best to stay on top of taxes to take advantage of potential benefits coming your way. Were here to answer any questions you may have during this confusing time, especially regarding US tax deadline in 2021 for citizens living abroad. Please get in touch with us today.
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Dealing With Economic Uncertainty
- The coronavirus pandemic has pushed millions into unemployment and the economy into a recession. Financial advisors can help navigate these troubled times. To simplify the search, use SmartAssets free tool. It will match you with financial advisors in your area in just 5 minutes. If youre ready to find an advisor, get started now.
- There are certain personal finance fundamentals that you need to get in order, ideally before a recession hits. Heres how to prepare for a recession.
- Extending the tax deadline isnt the only thing the government is doing to take the economic pressure off Americans. Learn what relief is available to you.
When Are Taxes Due In Your State
Be sure to find out when your local Tax Day is. Most taxpayers face state income taxes, and most of the states that have an income tax follow the federal tax deadline. Ask your state’s tax department: When are taxes due?
Yes. For 2021, Tax Day was originally April 15, but as part of the government’s ongoing coronavirus response, Tax Day was moved to May 17.
No. The tax deadline in 2021 is May 17. If you need to make an estimated tax payment for the first quarter, that payment was due on April 15, though.
If you request a tax extension by May 17, you can have until October 15 to file your taxes.
However, getting a tax extension only gives you more time to file the paperwork it does not give you more time to pay.
If you can’t pay your tax bill when it’s due, the IRS offers installment plans that will let you pay over time. You can apply for one on the IRS website.
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What Doesnt The Tax Deadline Extension Apply To
Remember that the federal governments May 17 income tax deadline extension only applies to your federal taxes. Most states have left their normal tax deadlines in place, but five states have later tax filing deadlines.
Find your state governments tax agency website on the Federation of Tax Administrators list to learn more.
|2021 State Income Tax Deadlines|
|Wyoming||No state return necessary|
If you need even more time to complete your 2020 federal returns you can request an extension to Oct. 15 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 Oct. 15 to file their 2021 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.
If you mail in your return, it must be postmarked May 17 or sooner. Heres a tax refund schedule to give you an idea when to expect your refund after youve filed. If you cannot file your tax return by the deadline, you need to file for a tax extension by May 17, 2021.
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.
Individual Tax Returns Due
For 2021, the individual tax return date has been moved from April 15 to May 17. 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.
May 17 is also the deadline to file for an extension to file your individual tax return.
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Tax Due Date Update Ador Extends Income Tax Deadline To May 17 2021
The State of Arizona has announced it has moved the deadline for filing and paying state individual income taxes from April 15 to May 17, 2021. Additionally, the deadline for first quarter tax year 2021 individual estimated tax payments remains April 15, 2021.
This follows the Treasury Secretary announcement that the Internal Revenue Service has moved the deadline for 2020 federal individual income tax returns to May 17, 2021.
The extended deadline only includes individual tax returns. The extended deadline also includes Form 140PTC and Form 140ET.
The new deadline means taxpayers who file and pay after the previous April 15 deadline will not be assessed late filing or late payment penalties.
Taxpayers anticipating that they will need more time beyond the new May 17 deadline to file state individual income taxes should consider filing for an extension by submitting Arizona Form 204 by May 17. Taxpayers do not need to submit Arizona Form 204 if they have already received a federal extension from the IRS.
Additionally, the Arizona Department of Revenue advises taxpayers they now have until May 17 to contribute to certified qualifying charitable organizations, qualifying foster care charitable organizations, school tuition organizations, and public schools to claim the tax credits on their 2020 individual income tax return.
Individuals should ensure to file accurate tax returns. Here are some key tips:
Accountants Concerned About Decision Not To Extend The Deadline
Ball says hes concerned about the CRAs decision to stick with the April 30 deadline this year.
The U.S. announced in March it would extend its federal folding and payment deadline from April 15 to May 17. And in Canada, Revenue Quebec said it will not start charging interest or imposing penalties until May 31, 2021.
Weve been discussing with the federal government for several months now, Ball says. But so far, Ottawa isnt budging.
Extending filing deadlines this year would risk interrupting essential credit and benefit payments for millions of Canadians payments on which thousands of Canadians rely, the CRA told Global News in an emailed statement.
The agency also said it is monitoring the impact of the COVID-19 pandemic across the country and has expanded payment arrangement options.
Still, Ball says many professional tax-fillers are under tremendous strain this year. On one hand, tax pros are facing an onslaught of new, pandemic-related tax and benefits provisions. The federal wage and rent subsidy programs for businesses, for example, require monthly applications, which is resulting in extraordinary workloads for many accountants, according to Ball.
On the other hand, some of the small and medium-sized accounting firms are facing staff shortages due to sickness, personal issues and stress, he says.
We were really hoping that the government would make an announcement to give people more time.
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Providing Additional Income Support To Canadians
The Government of Canada has indicated from the outset that there would be no penalties or interest in cases where CERB needs to be repaid. However, we recognize that, for some individuals, repaying the CERB could present a significant financial hardship. For this reason, we will give Canadians more time and flexibility to repay based on their ability to pay. We will work with impacted individuals on a case-by-case basis. There is no deadline to repay COVID-19 emergency benefit payments.
If you mistakenly received COVID-19 emergency benefit payments, or your situation has changed since you first applied for one of these benefits, you can repay the CRA via My Account, online banking, or mail.
Newly announced on February 9, 2021, targeted interest relief is being provided to Canadians who received COVID-related income support benefits. Once individuals have filed their 2020 income tax and benefit return, they will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022.
Self-employed individuals who applied for the CERB and would have qualified based on their gross income will not be required to repay the benefit, provided they also met all other eligibility requirements. The same approach will apply whether the individual applied through the CRA or Service Canada.
Afsp Deadline Postponed To May 17
Tax preparers interested in voluntarily participating in the Annual Filing Season Program for calendar-year 2021 now have until May 17, 2021 to file their application with the Internal Revenue Service. The normal due date is April 15.
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The 2021 Tax Deadline Extension: Everything You Need To Know
In response to the Coronavirus pandemic, the Treasury and IRS issued new guidance that calls 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.
Contribute To Your Health Savings Account
This medical account, available to individuals who have a high-deductible health plan, provides a tax-saving way to pay for out-of-pocket costs. You have until the May 17, 2021, tax deadline to contribute to an HSA for the 2020 tax year. The 2020 limits were $3,550 for an individual HSA owner and $7,100 for a family. For 2021, the individual coverage contribution limit is $3,600 and the family coverage limit is $7,200. If you’re 55 or older, you can put an extra $1,000 in your HSA.
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The States That Pushed Back Tax Deadlines To May 17
There are 35 states that have extended 2020 tax filing and payment deadlines to May 17, 2021, according to a list compiled by the American Institute of Certified Public Accountants. In most cases, the grace period does not include individual 2021 estimated tax payments. Click on your state for more detailed information.
Whats The Deadline To Pay Your Taxes
If youâre sending your return in via snail mail, the IRS considers your return âon timeâ if itâs addressed correctly, has enough postage, and is in the mail before the end of business on your filing deadline.
Otherwise, you can e-file your return before midnight on your tax filing deadline day.
If youâre self-employed, your business probably pays taxes in four sums throughout the year, rather than on one day. These are called estimated tax payments. The due date for these 2021 payments are April 15, June 15, September 15, and January 15 .
If youâd rather have someone else handle your bookkeeping and federal income tax filing, check out Bench.
Weâll set you up with a dedicated team of bookkeepers and a tax team to provide year round tax advice and file your taxes for you. With these teams, youâll have a tax planning session to ensure you are more prepared for next year. Weâll take both headachesâbookkeeping and taxesâoff your hands, for good.
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Is Unemployment Compensation Taxable In Arizona
Taxpayers should have received a Form 1099-G from the Arizona Department of Economic Security that they will need in order to prepare their 2020 federal income tax return. The amount of unemployment compensation is reported on the federal income tax return. The American Rescue Plan of 2021 includes a subtraction from federal adjusted gross income of up to $10,200 in unemployment income per person for the 2020 tax year.
If You Are A Sole Proprietor
With the extension, the tax extension deadline for filing your return . The department of revenue is extending the filing and payment deadline for hall income. The irs extended the tax deadline for 2021 from april 15 to may 17 for all individuals. If you are an individual or business that successfully extended your tax filing to october 15, 2021, you now have until january 3, 2022 to file. 2020 income tax deadline extension. This form must be postmarked on or before may 17, 2021 . The individual income tax payment and filing deadline has been extended by 32 days to may 17, 2021, without penalties and . That means taxpayers who owe . For most small businesses, this year’s tax deadline is march 15, 2021. It’s that time of year again: In order for an extension to be valid, at least 80% of the tax liability must be on account on april 15, 2021 through payments, withholding, and credits. If you are a sole proprietor . Businesses are putting together their tax filing and payment plans for 2021.
The individual income tax payment and filing deadline has been extended by 32 days to may 17, 2021, without penalties and . For most small businesses, this year’s tax deadline is march 15, 2021. With the extension, the tax extension deadline for filing your return .
It’s that time of year again: The department of revenue is extending the filing and payment deadline for hall income. For most small businesses, this year’s tax deadline is march 15, 2021.
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Tax Filing Season Begins Feb 12 Irs Outlines Steps To Speed Refunds During Pandemic
IR-2021-16, January 15, 2021
WASHINGTON The Internal Revenue Service announced that the nation’s tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.
The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.
This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.
To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners. These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting February 12.
Last year’s average tax refund was more than $2,500. More than 150 million tax returns are expected to be filed this year, with the vast majority before the Thursday, April 15 deadline.
Irs Postpones April 15 Deadline
The IRS announced on Wednesday that it is postponing the deadline for all individual tax returns. Returns otherwise due April 15 will not have to be filed until May 17 this year. The IRS says it will issue formal guidance in the near future.
The postponement applies only to individual taxpayers, who can postpone their federal income tax returns and income tax payment due on April 15 until May 17, 2021. They do not have to file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to qualify for this postponement.
The IRS says taxpayers who request an extension using Form 4868 will, as usual, have until Oct. 15 to file their returns, but their tax payments will be due May 17.
No interest, penalty, or addition to tax for failure to file a federal income tax return or to pay federal income taxes will accrue between April 15, 2021, and May 17, 2021, for any return or payment postponed by the announcement.
The postponement does not apply to estimated income tax payments due April 15, 2021, for 2021 tax years. The postponement, as announced on Wednesday, does not apply to any other type of federal tax or to any federal information returns.
This marks the second year in a row that the April 15 deadline has been postponed. Last year, federal tax filing and payment deadlines were postponed to July 15 due to the COVID-19 pandemic.
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