Tax Filing: Update on Deadlines
The IRS has extended the federal income tax filing due date for individuals to May 17, 2021. That means individuals, married filing jointly, married filing single and heads of households, including those who pay self-employment tax, can postpone federal income tax payments for the 2020 tax year originally due on April 15 to May 17, without penalties and interest, regardless of the amount owed. You aren’t required to file any forms for this federal extension.
2021 Estimated Taxes Owed Still Due April 15
This relief does not apply to 2021 estimated tax payments that are due on April 15. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn’t subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.
Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868, however taxpayers should pay any federal income tax due by May 17 to avoid interest and penalties.
Some States Extending Filing Deadline
As of this writing, many states have extended their filing deadline to May 17 to align with the federal filing deadline since you typically file your federal return first, and more states are expected to follow. The IRS urges taxpayers to check with their state tax agencies for those details.
Consult With Your Wealth Team
If you have questions about your specific tax situation, consider consulting with your wealth advisor and tax professional. At Mariner Wealth Advisors, our tax team is in-house, so you can reach out directly to your tax professional or coordinate your tax strategy with your wealth advisor. Your team is here to provide proactive tax strategies to help minimize your tax burden.
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