The Covid-19 pandemic has caused a lot of upheaval in our lives, including financially. Many people have been laid off from their jobs or had to reduce their hours. Businesses are struggling. On top of all that, it is nearly April 15th, the usual deadline to file your taxes. Thankfully, the Internal Revenue Service (IRS) has given us a bit of a reprieve during this uncertain time. The federal tax deadline has been postponed to July 15th to accommodate the many individuals and businesses that need more time to file their tax returns.
We know there are many questions taxpayers may have about taxes being postponed, so here we have addressed a few issues people may be wondering about.
No Action Needed
You do not need to do anything in order to take advantage of this postponement. While the IRS is still encouraging everyone to file their taxes now – especially those who will be receiving a tax refund, you are automatically eligible for this postponement to July and will not receive any penalties or interest for waiting until then.
Request a Further Extension
Should you still need more time to file your taxes, you can request an extension until October 15. You still need to pay your taxes by July 15, but the extension to October gives you more time to actually file them.
Check Your State’s Tax Policy
Many states, including New York, are following the federal decision to postpone tax day. However, make sure to check your own state’s policy and discuss with your accountant before making any decisions about your state taxes.
Contribute to Your IRA
As taxes are postponed, it also extends the amount of time you have to contribute to your IRA for 2019. That means that if you haven’t yet reached your contribution limit, you have more time to do so.
Tax refunds will remain on schedule based on when you file your taxes. So if you file taxes today, you should receive your tax refund within 21 days. The same is true if you file anytime between now and July 15.
New York City Businesses
Businesses in New York City are able to apply for a waiver of penalties accrued between March 16 and April 25 for being late on taxes administered by the Department of Finance. If you file for an extension or for a fee-removal using paper, label the top of your paper with the words “Covid 19” to indicate the reason for the request.
At Desantis, Kiefer, Shall, & Sarcone, we are here to help you with all of your tax and financial questions, especially during this uncertain time. We know there are many financial complexities facing individuals and businesses, and we are here to help you manage your accounts, file your taxes, and handle other financial issues as they arise. Together, we can work to make sure you are financially healthy, even during difficult times.