Tax Filing Deadlines in 2020: What You Need to Know
The year 2020 has been unprecedented, with the COVID-19 pandemic leading to widespread changes in daily life, including tax filing deadlines. If you're wondering, "Are taxes being delayed in 2020?" the short answer is yes, but it's important to understand the specifics to ensure you're in compliance with the law.
Federal Tax Deadline Extension
In March 2020, the IRS announced an extension of the federal income tax filing deadline from April 15 to July 15 due to the COVID-19 outbreak. This extension applied to all individuals, including those who pay self-employment tax. However, it's crucial to note that this extension was automatic, and taxpayers did not need to file any forms or call the IRS to qualify.
Additionally, the IRS also extended the deadline for estimated tax payments due on April 15 to July 15. This means that any individual, trust, or estate that has a tax payment due on April 15 now has until July 15 to make that payment without incurring penalties and interest.
State Tax Deadline Changes
While the federal tax deadline was extended, not all states followed suit. Some states, like California and New Jersey, extended their deadlines to match the federal extension, while others, such as Maryland and Virginia, kept their deadlines at the original April 15 date. It's essential to check with your state's department of revenue to understand your specific tax filing and payment deadlines.
States That Extended Tax Deadlines
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Georgia
- Indiana
- Louisiana
- Maryland
- Massachusetts
- Michigan
- New Jersey
- New Mexico
- New York
- North Carolina
- Pennsylvania
- Rhode Island
- South Carolina
- Virginia
- Wisconsin
States That Did Not Extend Tax Deadlines
- Alabama
- Arizona
- Arkansas
- Florida
- Hawaii
- Idaho
- Illinois
- Iowa
- Kansas
- Kentucky
- Maine
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- North Dakota
- Ohio
- Oklahoma
- Oregon
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Washington
- West Virginia
- Wyoming
Tax Payment Plans and Penalties
If you're unable to pay your taxes by the extended deadline, the IRS offers payment plans to help you pay off your tax debt over time. However, it's essential to note that interest and penalties will still accrue on any unpaid balance. To avoid these additional costs, it's best to pay as much as you can by the deadline and set up a payment plan for the remaining balance.
If you fail to pay your taxes by the deadline, the IRS may charge a failure-to-pay penalty of 0.5% of your unpaid tax balance for each month or part of a month that the tax remains unpaid. Additionally, the IRS may charge a failure-to-file penalty if you don't file your tax return by the deadline. The failure-to-file penalty is more severe, with a maximum penalty of 25% of your unpaid tax balance.
Filing and Payment Deadlines for 2021
As of now, the IRS has not announced any changes to the 2021 tax filing and payment deadlines. The federal income tax filing deadline for most individuals is April 15, 2021, and the estimated tax payment deadline is also April 15, 2021. However, it's essential to stay informed about any potential changes to these deadlines, especially as the COVID-19 pandemic continues to evolve.
In conclusion, while tax deadlines were extended in 2020 due to the COVID-19 pandemic, it's crucial to understand the specific changes that apply to your situation. Be sure to check with your state's department of revenue and the IRS to ensure you're in compliance with all tax filing and payment deadlines. If you have any questions or need assistance with your taxes, consider consulting a tax professional for personalized advice.
