
Some good news during our stay-at-home time. Spring is upon us, bringing longer days, warmer temperatures, cheerful blooms … and a welcome extension of the annual tax deadline.
This historic pushback has moved the filing date from April 15, 2020, to July 15, 2020 — giving you some additional breathing room to complete your tax return. The new deadline applies to all taxpayers, regardless of how much you owe or if you’re receiving a refund.
Before you file, we’ve got some things you should keep in mind as the new deadline approaches, as well as some tools, information, and resources to help you gather all the information you need. With these in your tax arsenal, you’ll be well-prepared to hit the new due date.
Why did the deadline change?
Many do their own taxes, either via paper returns or online tax prep software. In these situations, there is minimal risk of spreading COVID-19 associated with the filing process. But you might not be able to complete the process on your own or have easy access to a computer. And some free tax preparation services like Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE), are held in public spaces that aren’t currently accessible.
The extension gives you extra time to access the technology (or documents) you need or until social distancing orders are lifted so you can meet with a professional tax preparer.
Bonus: The additional three months are helpful if you need extra time to gather all your financial records and set aside money to pay your tax bill.
Get return ready
Just because you have extra time to do your taxes, doesn’t mean you necessarily should take advantage of the extended time frame. You can still file your return any time before July 15.
More good news: Taxpayers don’t have to file any additional forms or contact the IRS to qualify for this federal tax filing and payment extension; you’re automatically pre-qualified for the extension. But that doesn’t necessarily mean you should rest on your laurels. The three-month extension could quickly evaporate if you’re not prepared.
These three steps will help you get through the process:
Organize your documents: Whether you’ve elected to receive your tax documents electronically, or you’re working with old-school paperwork, start a system to collect and organize all of your records. It can be as simple as a physical file or a digital folder where you collect everything you’ll need to file your taxes.
The paperwork you need to complete your taxes can be a hard-to-remember jumble of numbers and letters, including the two most common forms: W-2s and 1099s. Depending on your employment situation, you will need one or both:
- W-2 Forms from all employers you (and your spouse, if filing a joint return) worked for during the past tax year.
- 1099 Forms if you (or your spouse) completed contract work and earned more than $600.
You might have other 1099 forms, like 1099-INT, 1099-OID, or 1099-DIV, and are for different types of investment income (including interest income, dividend income, proceeds from the sale of bonds or stocks, and income from foreign investments).
Decide how you’re going to prepare your return: In a way, how you complete your return can be a choose-your-own-adventure experience. All of the usual options are still available, despite the extended deadline.
For example, you could grab a calculator and do everything with pencil and paper. If numbers aren’t your favorite but you don’t want to spend a lot of money filing your taxes, using tax preparation software could be a good option for you. This technology will walk you through the process and help you ID possible deductions and credits that apply to your specific situation.
If DIY is not your thing, you have a particularly complicated tax situation, or you just can’t think of calculating your taxes while juggling WFH and taking care of your kids, hiring a pro could be the best option for you.
Finalize your taxes: Once you’re ready to file (on July 15 or before), you can do so electronically or through the mail. Take note: The combination of filing electronically and electing to receive a refund via direct deposit is the fastest way to get your cash back. To set up direct deposit, all you need to do is provide your bank’s routing number and your account number. (You can also pay your tax bill via electronic transfer, too.)
Filing your taxes can be a stressful endeavor. The extension of this year’s tax deadline is some good news that everyone needs right now.
How are you filing your taxes this year? Tell us in the comments.
Comment on this article
Comments
Natasha on May 8, 2020 at 7:27pm
Great & informative but does not help if IRS has not distributed funds .....still waiting .
D C. on May 15, 2020 at 1:26pm
Thank you for your irs tax info. It was very informative and a good reminder for your clients. You are keeping us informed of the changes that are affecting us.
Ally on May 15, 2020 at 1:28pm
Thanks for reading! We’re happy to hear you enjoyed the article.
Jane B. on May 15, 2020 at 6:10pm
It would be good to let people know about the dates for paying estimated taxes. I think the April 15 deadline is extended but not the June 15 deadline. Strange!
CJ L. on May 15, 2020 at 8:34pm
Why doesn't this article relay the deadlines for 1st quarter estimated and 2nd quarter estimated taxes.
Sheila S. on May 15, 2020 at 9:16pm
My husband and I for years typically have our taxes prepared by volunteers of AARP as even more so now unable to afford the expensive of regular preparation. Please advise!! Thank you, Sheila Sprague
Albert H. on May 15, 2020 at 9:19pm
That was an informative good read!
Ally on May 15, 2020 at 9:21pm
Thanks for reading, Albert.
Mc on May 15, 2020 at 10:44pm
If you owe money to FED or STATE has that deadline been extended to pay it off?
Brian on May 16, 2020 at 11:19pm
You article fails to mention that for those who must pay quarterly Estimated Tax, the deadlines for paying your 2020 Fed Estimated Taxes normally due 4/15/2020 and 6/15/2020 have also been extended to 7/15/2020. as well as any 2019 taxes due. I my state of Ohio, these deadliness are also extended for 2019 OH taxes owed and for the 1st and 2nd 2020 OH Estimated Tax payments.
Daniel H. on May 21, 2020 at 3:55am
very informative and direct. Keep it coming. Thanks
Ally on May 21, 2020 at 9:23am
Thanks for the comment, Daniel.
Molly on July 11, 2020 at 5:42pm
This is great information for people that do not understand their taxes. Thank You
Ally on July 11, 2020 at 8:01pm
Thanks for the comment, Molly. We’re happy to hear you found this article helpful. 😊