COVID-19 & Tax Season: The IRS Has Extended The 2021 Tax Filing Deadline
2021 Deadline Extension
The IRS has announced that the tax filing deadline for 2020 will be pushed back one month, until May 17, 2021.
There will no late penalties or fees for tax returns filed up through May 17, 2021 - regardless of how much you may owe. To receive your refund in a timely manner, the IRS recommends filing electronically and setting up a direct deposit.
Why Was the Deadline Extended?
According to a statement released by the IRS, "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."1
The American Rescue Plan Act passed in early March promised eligible Americans $1,400 stimulus payments. The timing of this legislation is tricky, as it fell right in the middle of tax season - many Americans have already filed, while many others haven’t. Because the stimulus payments were designed to be tax credits, any missing payments were initially meant to be resolved when a tax return was filed. If you are concerned about receiving your stimulus payment, your CPA can answer any questions you may have regarding that process.
Georgia Taxes Also Delayed
As per the Georgia Department of Revenue, the Georgia Individual Income Tax due date is extended to May 17, 20212
Texas, Oklahoma & Louisiana
Several southern states faced severe weather towards the end of February, causing mass power outages, food shortages, destruction to homes and more. In response to the natural disaster, the IRS extended the tax deadline to June 15.1 This extension is for Texas, Oklahoma & Louisiana residents only. If you live in these states, your local and state tax deadlines may have been extended as well.
If you haven’t already, get in touch with your financial advisor or CPA to review the necessary paperwork for the 2020 tax year.
Please check with your state of residence to verify that they have also delayed their tax filing in accordance with the Federal changes. Each state is not required to follow the Federal timeline, but in general they look to accommodate when able.
The commentary is informational in nature and not intended to imply a specific strategy or course of action. Investment advice and recommendations are only provided according to each individual’s personal circumstances. Chancellor Wealth Management is an investment advisor firm registered pursuant to the laws of the state of Georgia. The firm is also registered to conduct business in the states of South Carolina and Texas. Copyright © 2021 Chancellor Wealth Management, All rights reserved. This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.