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Tax Day is now May 17.


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If you had been already feeling the stress to file your federal taxes by April 15, the IRS is prepared to offer you a break for if you want to file your tax varieties this yr. On Wednesday, the US Treasury and IRS mentioned they are going to transfer the deadline to file your taxes out to May 17, “to help taxpayers navigate the unusual circumstances related to the pandemic.”

Tax season already began a bit of later than typical this yr, making the time to put together and file shorter than in earlier years. The House of Representatives has been requesting since February that the IRS  prolong the submitting deadline, with the company hip-deep in tax season, processing tax returns and sending out stimulus funds.

And including to the IRS plate, your lacking stimulus funds are linked to your taxes, and your 2020 revenue could possibly be used to decide how a lot cash you may get in a third stimulus check, plus it may have an effect on if you’d obtain a cost. Here’s what you want to find out about this yr’s Tax Day and how transferring it again may have an effect on you in additional methods than one.

With the new IRS May 17 tax deadline, does that delay me from paying my taxes, too?

Yes, with out penalty. According to the IRS, “Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed.”

If you want time past May 17, you file a tax extension, which supplies you extra time to full and ship in your paperwork to the IRS.

But that does not get you off the hook for estimated tax funds. The IRS mentioned the month-long extension doesn’t apply to these estimated funds, that are nonetheless due on April 15.

The IRS mentioned particular person taxpayers don’t want to file varieties or name the IRS to qualify for the extension.

Does the new tax deadline have an effect on the third spherical of stimulus checks?

Since stimulus funds and your tax return are interlocked this yr, pushing again the tax date may have an effect on the third stimulus check.

First, the IRS makes use of information on your 2020 tax return, if processed, when it determines the quantity you’d get in your third stimulus check. Specifically, the IRS appears at the AGI, or adjusted gross revenue, on your 2020 kind to assist work out your cost, utilizing a new stimulus check method. But the tax company will use your 2019 return if your 2020 taxes have not been accepted by the time a new invoice is handed. That may work in your favor if your revenue from 2019 was decrease than your revenue from 2020. However, if your 2020 tax return would carry you a bigger third stimulus check, like for those who have extra dependents, you’d need to file as quickly as doable, so the IRS processes your 2020 taxes earlier than releasing your third stimulus check.

Postponing the tax deadline offers you extra time to file, however once more, it means you may have to wait longer to obtain any lacking stimulus cash, and if there is a distinction between your 2019 and 2020 taxes, you’d have to wait till tax season 2021 to declare it.


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Stimulus check 3: How a lot cash you may get



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What a new tax deadline may imply for your lacking stimulus funds

Your federal tax returns this yr are additionally how you may get better any cash the IRS owes you from the first two stimulus checks. If you both did not get a cost or obtained lower than you had been eligible to obtain, you’ll be able to declare that cash on your federal tax varieties as a rebate credit score if you file this yr. That goes for nonfilers, too — those that aren’t usually required to file a tax return. If you wait to file your taxes nearer to a new, later due date, you are additionally ready to obtain your cash, which shall be bundled into your tax return.

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Congress tied your taxes and stimulus check cash collectively.


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Would my state’s tax due date be the identical as the new federal deadline?

Last yr, all states that acquire private revenue tax shifted their submitting deadlines to round the July 15, 2020, federal tax deadline, in accordance to the American Institute of CPAs. If the IRS postpones the submitting deadline once more this yr, we anticipate states to comply with.

For extra particulars on taxes this yr, we spell out the difference between a tax refund and a tax returnhow tax season is totally different in 2021 and three causes to join direct deposit if you file your taxes.

The editorial content material on this web page relies solely on goal, unbiased assessments by our writers and will not be influenced by promoting or partnerships. It has not been offered or commissioned by any third occasion. However, we might obtain compensation if you click on on hyperlinks to services or products provided by our companions.

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