Do I still need to file my tax return by April 15?
No. The IRS postponed the income tax filing deadline to July 15, allowing taxpayers more time to prepare their tax returns, since COVID-19 may make that more difficult.
If I owe, do I need to pay all my income tax due by April 15?
No. Under normal circumstances, if you apply for an extension to file your tax return, you still must pay your tax liability in full by April 15. However, since the IRS postponed the April 15 due date to July 15, you do not have to pay the income tax due until July 15. Also, no penalty and interest will be assessed during that time. The government is trying to make sure that people have more liquidity in the short term to manage financial costs associated with COVID-19.
What if I am self-employed and pay self-employment tax?
The postponement applies to self-employment tax as well as income tax. You do not have to pay any self-employment tax due until July 15.
What if I pay estimated tax?
If you pay estimated tax, your first required payment for 2020 is due April 15 under ordinary circumstances. However, the April 15 payment due date for estimated tax has also been postponed to July 15.
What if I am expecting a refund?
If you are expecting a refund, you should probably still file your income tax return as soon as you can. Filing sooner rather than later will start the process of getting your overpaid tax back to you so you can use it as needed.
When is the last day I can make an IRA contribution?
Because the due date of your income tax return was postponed to July 15, you have until July 15 to make an IRA contribution for 2019. The IRA contribution deadline is tied to the due date of your income tax return, and the government purposefully postponed that date to allow you more time to decide whether to make an IRA contribution for 2019.
Does the IRS tax filing and payment postponement apply to state and local income tax obligations?
No. Each state can establish its own rules and may or may not follow the IRS approach.
Congress is working on legislation that may provide more financial flexibility to manage COVID-19-related costs. While that legislation is subject to negotiation and change, there are several proposed provisions of interest, such as: