March 23, 2020
The IRS has extended the deadline for filing your 2019 income taxes. Learn more about this important change.
The Treasury Department and IRS have officially extended the deadline for filing your 2019 tax return to July 15, 2020, in response to the COVID-19 outbreak.
If you’re expecting to receive a refund, you should still consider filing your taxes ahead of the new deadline. However, for those with a large tax liability, the new deadline may provide some extra time to develop a thoughtful strategy for paying the taxes due.
Do I still need to file taxes by April 15, 2020?
No – the new deadline for filing your taxes is July 15. However, if you’re expecting to receive a refund, you should consider filing sooner.
Does this apply to state income tax payment deadlines?
Not necessarily. The extension is for federal income tax purposes only, not state income tax. Please consult your tax professional for more details about your state’s policies, which may adjust as COVID-19 updates unfold.
What if I pay estimated quarterly tax payments?
This delay applies to you, too. You will have a payment deadline of July 15 instead of April 15.
What do I need to do to elect the deferral?
No special election needs to be made if you decide to delay. Any interest or penalty from the IRS from April 15 to July 15 will be waived. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020.
Does this mean I can make 2019 IRA contributions until July 15?
Yes. Per IRS publication 590-A: “Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions.” The due date for filing the 2019 return is now July 15, 2020, so you have until that date to make 2019 IRA contributions.
How can I learn more about this change?
The IRS has established a special section on their website to help taxpayers stay up to date with COVID-19-related changes. Visit irs.gov/coronavirus to explore related resources, and reach out to your tax professional and financial advisor with any questions you have about your specific tax situation and financial plan.
Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, Raymond James Financial Advisors are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
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