Learn the details of the recently announced Coronavirus / COVID-19 tax extension.
Americans have a lot on their plate at the moment. But it’s also tax season, which can prove to be a trying time for everyone without the panic of a deadly virus spreading through the area. Fortunately, the government is providing an extension that can help.
Understanding the Coronavirus Tax Extension
The filing deadline for 2020 has been changed to July 15, 2020. The deadline to pay taxes you owe is also extended.
According to the IRS, if you are owed a refund, file as soon as you can, and you may be able to get your refund faster. If you owe money, though, you now have until July 15, 2020, to file and make the payments without penalty or interest.
Who is Eligible?
All individuals are eligible for the coronavirus tax extension. The good news is you don’t have to apply for it.
How do you Get the Extension?
There’s nothing you have to do. The extension is automatic.
If you can’t file your tax return for reasons other than you can’t pay the debt right now, you’ll need to file IRS Form 4868 to request an additional extension.
Other Facts you Should Understand
- This extension applies only to federal taxes - not state taxes. Check with your state legislature to see if your state has offered any extension. Keep in mind that this information changes daily, so check back often.
- The IRS is still processing tax returns and refunds. If you are expecting a refund, file your taxes as soon as possible to get your refund sooner.
- You can work out a payment plan in July once the extension ends if you find yourself in a difficult financial situation due to the coronavirus.
- If you can afford to pay your tax liability and it won’t jeopardize your ability to pay your regular bills, pay it. The tax liability isn’t going to go anywhere.
The Coronavirus tax extension is in place to help those (individuals and businesses) that would face financial issues if they paid their tax liability by April 15.
If you fall into this category, take the extensions and make sure you’re thinking about the next steps, especially if you can’t pay the liability by the 90-day extension.