Recognizing that the current tax season continues to be a tough time for many people due to the unusual circumstances related to the COVID pandemic, the IRS announced last week that the tax deadline for individual taxpayers was automatically extended from April 15, 2021 to May 17, 2021. This extension is for individual returns only. Individual taxpayers can postpone the individual federal income tax filing and 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 relief, however, does not apply to the first quarter estimated tax payments that continue to be due on April 15, 2021.
The extended deadline above applies to federal returns only, and you will want to pay attention to what your state does regarding their respective tax deadlines. Some states, including Maryland, have announced that they are postponing their tax deadlines as well. Maryland has announced an extension of the tax income filing deadline for individuals, pass-through entities, fiduciary, and corporate income tax returns that would have been due March 15 or April 15, 2021. This extension includes the deadline for the first and second quarter estimated payments that are now due to be paid by July 15. Just like last year, no interest or penalties will be assessed if returns are filed, and taxes owed are paid by the new deadline of July 15, 2021. The Maryland tax deadline has also been revised for sales and use tax returns for sales taking place in March, April and May of 2021 which are now be due to be filed and paid by July 15, 2021.
The May 17 deadline does help a bit if you end up owing taxes, however, if you think you are going to get a refund, filing earlier, rather than waiting, will help you get your money faster. As always, you should reach out to your tax advisor if you have questions regarding the specifics of your tax situation.
