Four Things to Know About the New Tax Filing Deadline
In light of the COVID-19 pandemic, the IRS has taken the unusual step of extending the tax filing and payment deadline until July 15, 2020. To take advantage of the extended deadline, there are four key points that you need to keep in mind.
1. You Don’t Have to File Paperwork to Get the Extension
This year’s tax deadline is different from a traditional extension in a couple of ways. First, the extension is automatic, so you don’t have to do anything if you are delayed in submitting your 2019 tax returns. Unlike a conventional extension that only gives you extra time to file but not to pay, this year’s federal tax deadline extension also gives you until July 15, 2020, to pay without incurring interest or penalties.
2. You Can Still Take Advantage of Individual Retirement Account and Health Care Savings Account Contributions
If you have not maxed out your IRA contribution limit for 2019, you can still add to your savings and take advantage of the tax benefits when you file your 2019 return. The deadline for making HSA and IRA contributions for the 2019 tax year has also been changed to July 15, 2020. It is important to note that the extension does not apply to 401(k) contributions.
3. The Federal Tax Deadline Extension Does Not Apply to State Income Taxes
State tax filing deadlines vary. While many states have extended their filing deadlines, some states have not. The deadline in North Carolina has been extended to July 15. If you are required to file in another state, you should consult Scott Boyar, CPA or another tax professional or contact the applicable state tax agency to verify that state’s filing requirements.
4. You May Want to File Sooner Rather Than Later
The federal tax filing and payment deadline was extended for several reasons:
- Many tax preparation businesses and services have been canceled or inaccessible because of the COVID-19 pandemic.
- Taxpayers may not be able to access all of their records or have computer access to file their taxes electronically because of quarantine measures and stay-at-home orders.
- The extension allows more time to pay for taxpayers who owe money and are unable to pay at this time because of the economic impact of the pandemic.
If you will be receiving a refund, however, it is to your advantage to file your taxes as soon as possible so that you can get the money owed to you.
Social Distancing Tax Returns with Scott Boyar, CPA
Our office is open and accepting new clients. If you need help filing your taxes or have questions about how the COVID-19 pandemic affects your tax filing and payment obligations, we can help:
- we can send you a secure link that you can use to upload your tax information;
- you can send your information to us using a tracking service; or
- you can drop off your information in the box in our lobby.
Once your return is complete, we can send it to you electronically or through the mail. We are also happy to arrange a telephone meeting to discuss your return.
Scott Boyar, CPA is a Charlotte tax accountant with extensive experience helping clients with a wide range of tax preparation needs. Contact the office at 704-527-2725 for more information or to schedule an appointment.