Helpful miscellaneous articles
regarding our retirement plan and planning.
Like you, I review my retirement nestegg and plan from time to
time. Recently, I went though some
continued education for some credentials I maintain and it occurred to me that
we all could use a review about these issues.
So with your help, we will share and post articles and info that may be
helpful and of interest to many of you in this section.
Federal IRS has moved this year’s
2020 tax filing deadline to May 17th. Most states have moved theirs inline.
Tax Day for individuals extended to May 17th :
Treasury, IRS extend filing and payment deadline
IR-2021-59, March 17, 2021
WASHINGTON — The Treasury Department and
Internal Revenue Service announced today that the federal income tax filing due
date for individuals for the 2020 tax year will be automatically extended from
April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in
the coming days.
"This continues to be a tough time for
many people, and the IRS wants to continue to do everything possible to help
taxpayers navigate the unusual circumstances related to the pandemic, while
also working on important tax administration responsibilities," said IRS
Commissioner Chuck Rettig. "Even with the new deadline, we urge taxpayers
to consider filing as soon as possible, especially those who are owed refunds.
Filing electronically with direct deposit is the quickest way to get refunds,
and it can help some taxpayers more quickly receive any remaining stimulus
payments they may be entitled to."
Individual taxpayers can also postpone federal
income tax payments for the 2020 tax year due on April 15, 2021, to May 17,
2021, without penalties and interest, regardless of the amount owed. This
postponement applies to individual taxpayers, including individuals who pay
self-employment tax. Penalties, interest and additions to tax will begin to
accrue on any remaining unpaid balances as of May 17, 2021. Individual
taxpayers will automatically avoid interest and penalties on the taxes paid by
May 17.
Individual taxpayers do not need to file any
forms or call the IRS to qualify for this automatic federal tax filing and
payment relief. Individual taxpayers who need additional time to file beyond
the May 17 deadline can request a filing extension until Oct. 15 by
filing Form 4868 through their tax
professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until
October 15 to file their 2020 tax return but does not grant an extension of
time to pay taxes due. Taxpayers should pay their federal income tax due by May
17, 2021, to avoid interest and penalties.
The IRS urges taxpayers who are due a refund
to file as soon as possible. Most tax refunds associated with e-filed returns
are issued within 21 days.
This relief does not apply to estimated tax
payments that are due on April 15, 2021. These payments are still due on April
15. Taxes must be paid as taxpayers earn or receive income during the year,
either through withholding or estimated tax payments. In general, estimated tax
payments are made quarterly to the IRS by people whose income isn't subject to
income tax withholding, including self-employment income, interest, dividends,
alimony or rental income. Most taxpayers automatically have their taxes
withheld from their paychecks and submitted to the IRS by their employer.
State
tax returns
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, not state tax payments or deposits or payments of any other type of
federal tax. Taxpayers also will need to file income tax returns in 42 states
plus the District of Columbia. State filing and payment deadlines vary and are
not always the same as the federal filing deadline. The IRS urges taxpayers to
check with their state tax agencies for those details.
Winter storm disaster relief for
Louisiana, Oklahoma and Texas
Earlier this year, following the disaster
declarations issued by the Federal Emergency Management Agency (FEMA), the IRS announced relief for victims of the February winter
storms in Texas, Oklahoma and Louisiana. These states have until June 15, 2021,
to file various individual and business tax returns and make tax payments. This
extension to May 17 does not affect the June deadline.
For more information about this disaster relief, visit the disaster relief page on
IRS.gov.
(As with any of these informative articles,
anyone who needs someone to talk to about
this
very subject contact me and I can direct you to a knowledgeable advisor).
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