Following the passage of the American Rescue Plan Act of 2021 (ARPA), the IRS issued nearly 90 million stimulus payments over the last few weeks and will issue more in the months to come.
A portion of the bill included a retroactive change – making the first $10,200 of unemployment benefits received in 2020 tax-free.
Due to this update, on March 17th, the IRS has announced that the Federal Income Tax filing deadline for the 2020 tax year is extended from April 15, 2021 until May, 17th 2021 for individual tax payers.
How does this impact me?
- Individuals do not need to make a special election to qualify.
- The postponement is for individual tax payers including those who pay self-employment tax.
- Relief does not apply to estimated tax payments due on April 15, 2021. Payments are still due this date and there will be no waiver of penalties and interest for late payments.
- Individuals that fell victim to the winter storms in Texas, Oklahoma and Louisiana will not be impacted. These filers will have until June 15, 2021 to file and pay 2020 individual taxes.
- Maryland’s Comptroller has pushed back the state income tax filing deadline to July 15, 2021 due to a new tax form for flow through entities, and changes to existing tax forms for state and federal pandemic relief measures.
If you have questions regarding any of the information listed above or need assistance with a tax or accounting issue, please contact Clearview Group’s Director of Income Tax, Brian Haines.