As you may already know, the IRS has extended the 2020 Federal tax returns filing date until May 17, 2021. The IRS has also extended the date for individual taxpayers and self-employed to pay tax payments without penalties and interest through IR-2021-59. However, this relief only applies to 2020 tax payments, not estimated tax payments for 2021 due by April 15, 2021.
What does this mean if you haven’t already filed your tax return? It is strongly recommended individuals delay filing until the new due date rather than filing by the previous date of April 15, 2021.
The Maryland RELIEF Act
In Maryland, the Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and
Families (RELIEF) Act was recently signed, prompting the recommendation to delay affected Maryland tax returns. As part of the Relief Act, they have changed the state income tax filing deadline to July 15, 2021, giving Marylanders even more time to file than the Federal government.
- Direct stimulus payments
- Unemployment grants for UI recipients
- Income tax exemption on unemployment benefits
- Grants and loans to small businesses
As the state is still revising filing forms, the Maryland comptroller strongly recommends delaying filing until the revised forms become available.
If you owe income taxes to any other state, be sure to check if that state has changed the filing deadline. As you can see by Maryland’s more extended deadline, not all states follow the federal government’s tax filing deadline. Some states may still expect filers to submit completed returns and payments due by April 15, 2021.
Federal Income Tax Filing Extension
With the postponement of federal income tax filing and payments extended to May 17, 2021, we also strongly encourage delaying filing the Federal portion. Fortunately for tax filers who have already filed, the IRS will not require any extension forms.
If an extension beyond May 17, 2021, is needed, you must file IRS Form 4868 to request an extension until October 15, 2021. This extension does not include payments made for 2020 taxes due. All taxes for 2020 are due no later than May 17, 2021 or will be subject to penalties and interest.
Preparing Your Tax Returns
With so many changes to federal and state income taxes, it’s best to wait until closer to the May and June deadlines to file. This gives the IRS and Maryland Comptroller time to adjust forms and create the new forms required in the various Acts.
For our current customers, we will prepare your tax return so you can see the outcome. If you haven’t filed yet and are considering having a CPA file for you, consider JStevens Accounting in Annapolis, Maryland. We still have some availability to file individual tax returns by the new extended due date.
You might need bookkeeping services or want an accountant for your personal or business needs. JStevens Accounting team is available to provide the level of care you expect from an accounting firm. We can act as an advisor, and we also offer payroll and HR services for businesses.
Contact us today to find out JStevens Accounting can make a difference in your personal and professional finances.