If you’re a procrastinator, much like the 50-million people who didn’t file their taxes in 2019 until April 15th, I have good news for you! The U.S. Department of Treasury and Internal Revenue Service (IRS) announced that the tax due date will extend from April 15th, 2021 to May 17th, 2021, giving everyone an extra month to gather their 2020 tax information.
Here’s what you need to know:
Why Did They Extend the Deadline?
2020 was an odd year for everyone: The Pentagon released 3 UFO videos, Murder Hornets were a problem, and we were introduced to a deadly coronavirus outbreak. Since 2020 was so overwhelming, bewildering, and difficult to navigate, the IRS decided to extend the tax deadline. IRS Commissioner, Chuck Rettig, made a statement regarding the extension:
“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”.
Who Qualifies for the Extension?
Individual taxpayers, businesses, trusts, estates, and more may file their taxes by May 17th, 2021. This extension is automatic; therefore, you don’t have to worry about filling out extra extension forms.
Please note that this extension only applies to your federal taxes. Most states still have their normal tax deadlines in place. Therefore, it’s wise to check with your state before you wait to file.
What if I Need More Time?
If you still need more time to fill out your tax return beyond the May 17th deadline, you may have the opportunity to file by October 15th, 2021. You must fill out Form 4868 with your tax professional or use your tax software. If you choose to extend your tax return, please keep in mind that you still have to pay your federal income tax by May 17th, 2021. If you miss the May deadline, you may have to pay interest and/or extra penalties.
What’s the Quickest Way to Get Your Refund?
First, you’re going to want to file your taxes as soon as possible. When doing that, you will want to file it electronically with direct deposit in order to get your refund quickly.
Your Next Steps
If you haven’t filed your taxes yet, you may want to start the process soon. If you wait until the last minute, you may find that you have missing information or potentially don’t know how to fill out your tax forms. Therefore, it’s best to get started right away so you can get this off of your checklist.
If you need assistance, don’t be afraid to contact tax experts/local accountants. Most tax experts are completely available online, which alleviates the stress you may have regarding going into someone’s office.
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