Federal Tax Deadline is July 15, 2020 (That’s Soon)

We are taking a break from our favorite catchy quotes series for a couple of very important reminders.

Back in March, the IRS announced they would postpone the tax filing and payment deadline to July 15th (from April 15th) as part of the CARES (Coronavirus Aid, Relief and Economic Security) Act.  If you were expecting a refund, you probably already filed. But if you owed taxes and haven’t filed or paid yet, your deadline is near. State tax deadlines were not affected by this announcement, but many states did extend their own deadlines after the federal announcement. Check with your state tax authority for your requirements. 

If you can’t get your taxes filed by July 15, you can request an extension to push your due date back to October. But if you don’t pay any owed taxes by July 15, whether you file an extension or not, you may be assessed a penalty and possibly interest. The best way to request a filing extension is to electronically file Form 4868 through your tax professional, tax software, or using Free File on the IRS website.

In addition to pushing out the federal tax due date, the deadline to contribute to an IRA (individual retirement account) or HSA (Health Savings Account) for the 2019 tax year was also extended to July 15, 2020. These are both great tax efficient retirement vehicles and a great way to save for your future. You can open an IRA at banks, brokerages and credit unions. Check with your health plan for more info on your HSA.

If you have questions about any of these, please reach out to a coach.