Your 2020 income taxes are due on May 17. Here is everything you need to know:
- In 2021, the IRS has once again postponed the due date of income tax. Last year, the deadline was extended until July 15 due to the pandemic; This year, you will have until midnight on May 17 to submit your documentation.
That extra time can come in handy, since your taxes can be more complicated than usual, you may be embroiled in new and potentially thorny problems including unemployment insurance claims, income from stimulus checks, and changes of residence driven by a pandemic.
- When is my 2020 tax return due in 2021?
Although last year the IRS extended the deadline from April 15 to July 15, this year the agency has given us just one additional month: your 2020 tax return is due May 17, 2021. If you request an extension (and is approved), your last day to apply will be October 15, 2021.
However, there is a considerable warning: The IRS has said that the May 17 deadline does not apply to those making estimated payments, which were due on April 15. Although lawmakers introduced a new bill that would delay the due date of the first quarter estimated tax to May 17, it is unclear if there is enough time or political will to pass it.
- What happens if I miss the tax deadline?
If you don`t file your income taxes before midnight on May 17, what happens next depends on your situation. If you are owed a refund, there is no penalty for late filing, although this may be different for your state taxes. But if you owe the IRS, penalties and interest will start to accrue on any outstanding taxes owed in May. There is also a $330 fine for failure to file under the First Taxpayer Act of 2019.
It is better to file the return on time, even if you owe money and cannot pay at this time; In most cases, the late filing penalties are higher than the late tax penalties. If you can`t file your return on time, you can request an extension, which automatically delays the tax filing deadline to October 15 and protects you from penalties. In most states, taxpayers who are granted a federal extension to file the return automatically receive an equivalent extension to file their state income tax return.