Tax Deadline Extension: What Is Extended For 2021
The IRS gave residents and businesses of Texas, Oklahoma and Louisiana extra time because a severe mid-February winter storm left millions without power and water.
On March 17, 2021, the IRS officially extended the federal income tax filing deadline from April 15 to May 17. That means taxpayers who owe money dont need to file a tax return until this date, and if they owe money they dont need to make payments until then.
This extension applies to all filers, including individuals, businesses, trusts, estates and more. It applies regardless of the amount you might owe, and payments will not incur additional penalties or interest up until May 17. This extension is automatic, meaning taxpayers do not need to file any additional forms to take advantage of it.
The May 17 extension could provide some significant benefits for taxpayers looking to save for retirement through an IRA. Thats because the normal April 15 income tax deadline is also the IRA contribution deadline. In turn, the new May 17 due date would simultaneously push back the 2019 IRA contribution deadline.
For reference, the 2020 standard IRA contribution limit is still $6,000, or $7,000 if you are 50 or older. If youve already maxed out your contribution for the 2020 tax year, you can contribute toward the 2021 tax year, for which the limit is also $6,000.
This extension does not apply to 401 retirement savings accounts.
Tax Filing Season Begins Jan 24 Irs Outlines Refund Timing And What To Expect In Advance Of April 18 Tax Deadline
IR-2022-08, January 10, 2022
WASHINGTON The Internal Revenue Service announced that the nation’s tax season will start on Monday, January 24, 2022, when the tax agency will begin accepting and processing 2021 tax year returns.
The January 24 start date for individual tax return filers allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly. Updated programming helps ensure that eligible people can claim the proper amount of the Child Tax Credit after comparing their 2021 advance credits and claim any remaining stimulus money as a Recovery Rebate Credit when they file their 2021 tax return.
“Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop these past several months to prepare,” said IRS Commissioner Chuck Rettig. “The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays. Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year. And we urge extra attention to those who received an Economic Impact Payment or an advance Child Tax Credit last year. People should make sure they report the correct amount on their tax return to avoid delays.”
Can I File For An Extension For My State Tax Return
Maybe. The rules vary from state to state, so you’ll need to check with your state tax agency to learn about your specific options for an extension.
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Cbdt Grants Further Relaxation In Electronic Filing Of Income Tax Forms 15ca/15cb
In view of the difficulties reported by taxpayers in electronic filing of Income Tax Forms 15CA/15CB on the portal www.incometax.gov.in, it had earlier been decided by CBDT that taxpayers could submit Forms 15CA/15CB in manual format to the authorized dealer till July 15, 2021. It has now been decided to extend the aforesaid date to August 15, 2021.
How Do I File Taxes
You can file online yourself, potentially for free, or visit a tax professional.
If your adjusted gross income was less than $72,000 in 2020, you might qualify to file your federal return, and maybe your state return, at no cost through one of the IRS partners, regardless of how complicated your tax situation is. Also, most active duty military qualify for free filing. Check out your options here.
If your income exceeds $72,000, or you’re not interested in the platforms offered in partnership with the IRS, check out our list of the best tax software to use this year.
After filing out the required forms, your tax preparer will calculate whether you owe additional income tax or you’re getting a refund. If you don’t pay what you owe by May 17, penalties may apply.
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Federal Income Tax Deadline In 2022
Circle April 18, 2022, on your calendar because thats the one general date by which most filers need to get returns into the IRS. While taxes are typically due on April 15, this years Tax Day falls on Emancipation Day, a legal holiday observed in Washington D.C. As a result, most filers will have until the next business day, April 18, to submit their tax returns.
However, you may have a different deadline if you filed for an extension or if you are a corporation. Heres a rundown of all the deadlines you need to keep track of.
Given fluid tax filing rules its important to ensure your investments are protected. A financial advisor can help you make sure your tax filings dont unnecessarily hurt your assets.
Can I Claim A Tax Credit For Any Charitable Organization I Choose
A taxpayer can only claim a tax credit for donations made to certified charities from the list for the year in which the donation was made. For example, donations made during 2020 must be to a charity shown on the 2020 QCO or QFCO list. To confirm certified qualifying charities and more information on QCO and QFCO tax credits, visit .
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Irs: Tax Due Deadline 2021
The change in the tax deadline was made because of the coronavirus pandemic and the devastating impact this has had on businesses and on individuals.
“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,” the IRS Commissioner Chuck Rettig said when the tax deadline change was announced in March.
“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.”
When Is The Tax Extension Deadline
If youll need more time to figure out your taxes, the IRS allows anyone to file a free extension request that will push your due date out to Oct. 15. However, youll still be required to pay any taxes you owe by May 17 , and that money will be due when you file your extension request. This option simply gives you more time to get your forms in order to make sure youre maximizing your refund.
Filing an extension requires submitting Form 4868 and paying any taxes owed, but the IRS provides a list of free software to make the process easy.
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Tax Day : Whens The Last Day To File Taxes
Last year, the deadline for filing your federal income tax return was pushed back from April 15 to July 15 because of the COVID-19 pandemic. This year, the IRS extended the due date again this time to May 17. In addition to giving taxpayers more time to file their 2020 federal income tax returns, the extension gives the tax agency more time to adjust its computer systems and forms to account for tax changes made by the recently enacted American Rescue Plan Act most notably, the $10,200 exemption for unemployment compensation received in 2020.
If youre a victim of the February winter storms in Texas, Oklahoma, or Louisiana, you can wait until June 15, 2021, to file your 2020 federal income tax return. Moving the general filing deadline from April 15 to May 17 doesnt affect these disaster-related extensions. If there are other natural disasters between now and May 17, other Americans could have their filing deadline pushed back even further, too.
If you have a federal tax refund coming, you could get paid in as little as three weeks. In the past, the IRS has issued over 90% of refunds in less than 21 days. To speed up the refund process, e-file your 2020 tax return and select the direct deposit payment method. Thats the fastest way. Paper returns and checks slow things down considerably.
What If I Need More Time
Don’t let a looming tax deadline force you to rush through the tax filing process and make a mistake on your return. Simply request an extension.
Just keep in mind, the tax extension gives you more time to file your return, not more time to pay the tax you owe. You’ll need to estimate the amount you owe and make your payment by the tax filing deadline.
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All You Need To Know Is Yourself
Answer simple questions about your life and TurboTax Free Edition will take care of the rest.
Estimate your tax refund andwhere you stand
Know how much to withhold from your paycheck to get
Estimate your self-employment tax and eliminate
Know which dependents credits and deductions
Estimate capital gains, losses, and taxes for cryptocurrency sales
See which education credits and deductions you qualify for
The above article is intended to provide generalized financial information designed to educate a broad segment of the public it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
File Electronically And Choose Direct Deposit
To speed refunds, the IRS urges taxpayers to file electronically with direct deposit information as soon as they have everything they need to file an accurate return. If the return includes errors or is incomplete, it may require further review that may slow the tax refund. Having all information available when preparing the 2021 tax return can reduce errors and avoid delays in processing.
Most individual taxpayers file IRS Form 1040 or Form 1040-SR once they receive Forms W-2 and other earnings information from their employers, issuers like state agencies and payers. The IRS has incorporated recent changes to the tax laws into the forms and instructions and shared the updates with its partners who develop the software used by individuals and tax professionals to prepare and file their returns. Forms 1040 and 1040-SR and the associated instructions are available now on IRS.gov. For the latest IRS forms and instructions, visit the IRS website at IRS.gov/forms .
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How Do I Cancel The Payment And Schedule It For A Later Date
Payments can be canceled until 5:00 pm on the business day prior to the requested withdrawal date. Payments that can be canceled include payments made through e-filed returns and payments made on AZTaxes.gov.
Payment through vendor: If the payment was scheduled through an electronic filing program, visit www.AZTaxes.gov, select Cancel a Payment, and select Efile as the Payment Type. Data required is SSN, filing status, tax year and payment amount.
Payment by individual: If the payment was scheduled on AZTaxes.gov, select Cancel a Payment, then select the Payment type. A confirmation number is required. For payments by paper, ADOR will process the check when it is received and does not hold it for processing at later dates. For paper checks, remember to include the following:
- Tax ID
- Tax Period
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.
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Did Arizona Conform To The American Rescue Plan Of 2021
On April 14, 2021, Governor Ducey signed Senate Bill 1752, which conformed to the definition of federal adjusted gross income , including federal changes made during 2020 as well as through the 2021 American Rescue Plan. The American Rescue Plan of 2021 included a subtraction from federal adjusted gross income of up to $10,200 in unemployment income per person for the 2020 tax year.
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.
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Do Not Risk Having Your Benefits And Credits Interrupted
Doing taxes on time is the best way to ensure your entitlement to benefits and credits, like the Canada child benefit , the Old Age Security pension payments, and the goods and services tax/harmonized sales tax credit, are not interrupted. Even if you owe tax, dont risk having your benefits and credits interrupted by not filing. If you cannot pay your balance owing, the CRA can work with you on a payment arrangement.
Pay What You Can Without Compromising Basic Necessities
If youre not able to pay the full amount of the taxes you owe by the tax filing deadline, the IRS will charge you interest on the outstanding balance. The interest rate is subject to change each quarter and is calculated by adding 3 percentage points to the federal short-term interest rate.
Paying as much as you can by the deadline is your best strategy. The more you pay towards your balance before its late, the less youll have to pay in accrued interest and penalties.
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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?
If you request a tax extension by April 18, you can have until October 17 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.
Contribute To Or Open An Ira By Tax Day
Contributions to a traditional IRA can be tax-deductible. You have until the April 18, 2022, tax deadline to contribute to an IRA, either Roth or traditional, for the 2021 tax year. The maximum contribution amount for either type of IRA is $6,000 or $7,000 if you’re age 50 or older. See all the rules here.
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Quarterly Vs Annual Payments
Wondering if your business should pay taxes quarterly or annually? If your business has employees, youll need to file Form 941 every three months. You will also need to pay a quarterly tax if your business sells specified goods, like gasoline or alcohol, that require an excise sales tax.
If your business doesnt fall under those categories, figure on paying at the usual tax time. But if youre worried about having a large sum of cash on hand to make a lump-sum annual payment, consider paying quarterly instead. Additionally, freelancers are required to pay estimated quarterly taxes and to file an end-of year tax return.
All quarterly estimated tax payments for individuals, S corporations, and C corporations, should be made on the following schedule:
C Corporations will make their final estimated quarterly tax payment on December 15, 2022. Individuals and other types of corporations can wait until January 2023 to file their fourth quarterly payment for the 2022 tax year.