COVID-19 Fallout: Taxpayers Now Get Until July 15 To File Taxes

Taxpayers are getting a helping hand from the federal government to ease the pain and disruption caused by the coronavirus pandemic.

Filing and Paying Taxes

The Internal Revenue Service confirmed it has moved the deadline for filing individual tax returns for tax year 2019 from April 15 to July 15.

The deadline for paying taxes, without penalty and interest for most (but not all) cases, has also been extended to July 15.

The new extension applies to individuals, corporations, estates and trusts, regardless of the amount of taxes owed (the previous caps on the amount of taxes owed has been removed).

Refunds

If you have already filed your taxes, that’s fine. If you are due a refund, you should receive it as scheduled. The Treasury urges anyone who may be due a refund to file as quickly as possible, as that cash inflow can help cover some of the financial dislocation caused by the coronavirus crisis.

IRA and Other Contributions

The new filing delay extends the April 15 deadline to July 15 for 2019 contributions to Individual Retirement Accounts, Roth IRAs and Health Savings Accounts, according to tax expert Ed Slott, founder of IRAhelp.com, and other tax specialists. Slott says the IRA contribution deadline extends automatically to coincide with the new tax filing deadline.

Check with your tax preparer to confirm contribution deadlines for other types of small business retirement accounts, to ensure they have been extended.

Required Minimum Distributions

Proposals have already been floated in Congress to waive Required Minimum Distribution (RMD) withdrawals for 2020, similar to what was done in 2009. However, nothing has been approved yet as of this writing.

“I intend to write my congresswoman and senators requesting a waiver from RMD’s this year,” wrote one reader to financial columnist Michelle Singletary. “I don’t want to liquidate assets at distress prices.”

We’ll bring you updates as they occur.

Quarterly Estimates

Payment of quarterly estimates has also been delayed. As of now, you can delay your first estimate, due April 15, until July 15. Check with your tax preparer to see if subsequent estimated tax filing dates (normally June, September and January), have been extended.

State Taxes

One last wrinkle: if you live in a state that has state income taxes, check with state tax officials to ensure that state filing deadlines have also been extended to match federal deadlines.

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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