In the midst of these uncertain times, the government has made some changes to this year’s tax filing, payment, and IRA contribution deadlines, so we want to take this opportunity to outline these changes for you.
As you may have seen or heard, the filing and payment deadline for 2019 federal income tax is now July 15. You now have until this date to file your federal taxes and make your payments, if any, without accruing penalties or interest.
If you were planning to file on extension, you have until July 15 to request that extension and pay what you estimate will be your tax liability. Your return will be due, as always, on October 15.
If you will be making federal estimated tax payments for 2020, the first payment that is typically due on April 15 is now also delayed until July 15. However, the second payment due on June 15 has not been moved, so please do keep this in mind when making your estimated payments.
Please note that these changes apply to federal taxes. Not all states have made final decisions on their tax filing deadlines, so it’s best to consult with a tax advisor on whether or not your state has followed the IRS in delaying filing. (For example, New Jersey is still deciding whether to mirror the IRS changes.)
Since these filing deadlines also correspond with IRA contribution deadlines, those have also been pushed back to July 15. You now have until that date to make traditional, Roth, and SEP IRA contributions.
If you plan on making traditional or Roth IRA contributions between April 15 and July 15, please make sure to specify if the contribution is meant for 2019 or 2020 so that we can ensure it is coded for the correct year at the custodian.
We also want to take this time to review the possibility that RMDs for this year will be waived. The stimulus package just passed by the Senate and now before the House of Representatives includes a provision for waiving RMDs for 2020. While this plan has not yet passed and this stipulation needs some further clarification, we are monitoring it closely and will be sure to notify our affected clients as soon as possible if their RMD is no longer necessary.
As always, we do encourage you to reach out to tax professionals with any questions regarding filing, but we are also here to assist you at any time.
We hope you and your families are all staying safe.