As a result of the fight against coronavirus, the IRS announced this week that individuals and business taxpayers can automatically delay the filing and payment of 2019 income and self-employment taxes from April 15th to July 15th.
All U.S. individual and business taxpayers automatically qualify for both the filing and payment deferral.
So, what does this mean?
- If your taxes weren’t going to be done by 4/15/20, you no longer have to file the Federal extension form or make payments by 4/15/20.
- If your taxes will be done soon and you expect a refund, consider filing soon to get your refund as soon as possible.
- If your taxes will be done sometime before 7/15/20 and you end up owing taxes, you have until 7/15/20 to file your returns and make the payment.
- If your taxes will not be done before 7/15/20, an extension form and payment should be filed by that date.
- 2020 estimated taxes due by 4/15/20 can be delayed until 7/15/20.
There is no need to rush through your taxes. Take the time now to work with your tax advisor to make sure you are capturing all of your legitimate tax deductions.
We expect many states to offer the same or similar tax deferral benefits. The American Institute of CPAs has put together a state-by-state list on Changing State Tax Deadlines that can be found here.
As you know, things are constantly evolving in this unprecedented time, so do keep in close contact with your tax advisor.
Unlike the coronavirus, stock market, or toilet paper supplies, which are mostly outside your control, your taxes are something you have some control over. 2020 is just beginning, and there are lots of things you can do now to minimize your taxes for this year.
In fact, if you are stuck at home practicing social distancing, put that time to good use by organizing your tax info from 2019. Spend some time to get your tax savings plan set up for 2020. Maybe read up on a good book on how to invest or how to save on taxes.
I know taxes are not the most exciting topic to learn about. However, if you can take a little bit of time to learn the rules, you could keep a lot more of your hard-earned money every single year.
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