It is clear that the pandemic is still impacting our lives in many different ways, to assist with the hardships that many are still experiencing, the IRS has made the decision to extend tax day for individuals until May 17, 2021.
Why Extend the 1040 deadline?
Extending the deadline seems to provide relief to all parties. Individuals will have additional time to gather the information needed to complete their tax returns. The IRS also has a lot on its plates right now, with millions of stimulus checks to distribute under the American Rescue Plan, in addition to processing millions of tax returns and refunds this spring.
The main takeaway here is that Americans now have more time to file their taxes, for many that are having a difficult time financially this will come as a relief. The delay from April 15 to May 17 allows for about a month of additional time.
Does this Apply to Tax Payments and State Taxes?
Yes, in addition to more time to file their tax returns, individuals that have to make a tax payment to the IRS will have until May 17, 2021, to do so. They can delay these payments without any repercussions like penalties or interest. This applies to both individuals and self-employed individuals.
As for state taxes, there may not necessarily be any additional time to file. This decision is left up to the discretion of each state. Be sure to check with your state to see if they have made any changes to their tax deadlines for individuals.
Can I still File an 1040 Extension?
Yes. The extension from April 15 to May 17 is completely automatic and requires no additional paperwork on your part. However, if you need more than the additional month to complete your filing, you still have the option to file a Form 4868 extension. This provides an additional 5 months to file, bringing your extended deadline out to October 15, 2021.
Remember, this additional time that you are granted by filing Form 4868 does not apply to your tax payment. You will need to make your payment to the IRS on May 17, 2021, even if you file an extension.
What about States Affected by Disasters?
There are a few exceptions to the new May 17 tax deadline, this includes the many individuals in states that have recently been affected by natural disasters. Individuals in the states of Texas, Louisiana, and Oklahoma have been given until June 15, 2021, to complete their tax returns and make tax payments. This extension will remain in effect.
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