The US Treasury has announced taxpayer relief for federal tax in response to COVID-19. Here is the , , and a . Below is my brief summary for most taxpayers.
- The standard deadline for filing your individual federal income tax returns remains April 15, 2020. It has not changed.
- If you’re getting a tax refund, you should try to file right away. Might as well get your money sooner, as this relief won’t help you if you don’t owe money.
- The deadline for tax payments if you owe money has been postponed by 90 days. If you owe money on your return, instead of April 15, 2020, you now have until July 15th, 2020. Penalties and interest that you would otherwise have accrued will be waived. This applies on up to $1 million in tax owed.
- Filing a tax extension can help. If you can’t make the filing deadline of 4/15, you should file for a . This extends your tax filing deadline, which means you can also take advantage of the tax payment postponement. Late filing penalties are quite significant.
- 2020 1st quarter estimated tax payments due April 15th are also now due July 15th. This can be confusing as the 2nd quarter deadline is still currently June 15th. This may help many self-employed workers whose income is hard to predict right now.
Check your state tax situation as well. The American Institute of CPAs has a handy list of .
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