The IRS has announced that the federal income tax filing deadline for individuals for the 2020 tax year is extended from April 15, 2021, until Monday, May 17, 2021.
However, as of March 22, there remain meaningful reasons why individual taxpayers should still work to complete and file their returns by April 15, 2021.
This relief does not apply to estimated tax payments that are due on April 15. These payments are still due on that date. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, if your income is not subject to income tax withholding, estimated tax payments are made quarterly to the IRS.
Also, the federal tax filing deadline postponement to May 17, 2021 only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021. It does not apply to state tax payments or deposits or payments of any other type of federal tax.
Michigan and Indiana have extended their deadlines to May 17; however, the first quarter estimated payments in both states are still due April 15. To date, not all other states have yet extended their filing deadline. The IRS and state tax authorities will likely be issuing additional guidance. Please check with your Kruggel Lawton advisor or your state tax authority for more information.
If Kruggel Lawton is assisting with your individual tax return, we urge you to provide us your information so that we may complete your return by 4/15/21. This will help ensure you will have a 1st quarter estimated payment (still due on April 15) and/or to be able to file your state return by the applicable due date.