What You Need to Know About the Extended Tax Filing Deadline for 2020

What You Need to Know About the Extended Tax Filing Deadline for 2020

Due to the social and economic stress that the Coronavirus (COVID-19) has brought upon our country, all taxpayers now have until July 15 to file and pay your 2019 taxes. Here’s how to plan accordingly.

What Exactly Does the New Tax Filing Extension Include?

The U.S. government has extended the deadline for filing federal income tax from April 15 to July 15, 2020, giving Americans an extra 90 days. The July 15 deadline is for FILING AND PAYING federal income tax (you do not need to still file by April 15). The extension applies to individuals, trusts, and corporations.

Penalty fees and interest due on any remaining unpaid balances will begin to accrue on July 16, 2020. You can avoid interest and penalties by paying your taxes by the July 15 deadline.

Do I need to do anything to receive the July 15 extension? No, there is nothing you need to do. The new July 15 deadline for filing and paying federal income tax is automatic.

Should I Still Try to File as Quickly as I Can?

If you can file your tax returns before the July 15 deadline, you should. This is especially true if you are owed a tax refund. However, if you do not believe you will be ready to file early, simply file before or on the new July 15 deadline. If you do not think you can file before or on July 15, you can request an extension to file your tax returns. If extended, S-corps and partnerships are still due September 15, and C-corps and personal returns are still due on October 15^th. You will need to file Form 4868 through your tax professional, tax filing software, or by using the IRS’s Free File option. For more information about requesting an extension, go here.

What About State Taxes?

The July 15, 2020 tax filing deadline applies only to federal income returns and taxes (including self-employment income tax), which would normally be due by April 15, 2020. Though previously the extension did not apply to any California state taxes, California conformed to the Federal  deadline of July 15 also. Taxpayers will still need to file for state taxes in 42 states, including the District of Columbia. Deadlines for filing and paying state taxes vary in each state and are not always the same as the federal filing due date. Check with your state tax agency for details about paying state taxes in your state, and visit this page for more information.

A few states have already extended their tax filing deadline, and experts suspect that many more will follow suit. California’s new tax filing deadline is now June 15, 2020.

If you have any questions about filing and paying for your federal income taxes or state taxes for 2020, contact your local tax experts at Paul Anderson, CPA, Bookkeeping and tax services in San Diego. Whether you need assistance filing for individual federal income taxes or filing for your small business, you will find the answers you need at the full-service tax preparation offices of Paul Anderson, CPA. You don’t need to allow the Coronavirus to cause disruptions or potential penalties with filing your owed taxes.