What if I can’t pay my taxes on time?
Back in March, the IRS announced they would postpone the tax filing and payment deadline to July 15th, 2020 from April 15th as part of the Coronavirus Aid, Relief and Economic Security Act (CARES). 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 tomorrow, 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.
The good news is you still have time to put money towards your retirements savings.
In addition to pushing out the federal tax due date, the deadline to contribute to an individual retirement account (IRA) for the 2019 tax year was also extended to July 15, 2020. This is a great way to save for retirement that can save you tax money now or in the future. You can open an IRA at your bank, brokerage or credit union today in time for the deadline tomorrow.
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This article was written in July 2020 because the Coronavirus pandemic significantly changed the schedule for federal tax filings and payments. All dates in this article are specific to 2020 and do not apply to other tax years.