Don’t Forget About Tax Day!

If you’re like the rest of us, you’re accustomed to the drama of the news cycle lately. You’re hearing one rumor or speculation after another, especially with regard to topics like stimulus checks, economic conditions, and changes to your future income taxes. Since the IRS extended the deadline to file federal income tax returns until July 15, we’ve witnessed a bit of confusion over the topic.

You might have heard rumors that tax day will be extended yet again, but we can now report with confidence that that is not true. The IRS will not be extending the deadline again, regardless of what else happens with the pandemic and economic recovery. So, if you haven’t yet filed your 2019 tax return, make sure to do that by the deadline on July 15.

Also, July 15 is the deadline for the first and second quarter tax payments for 2020, if you pay that way.

But what if you still need more time? You can file a request for an extension, but you must also file that request by July 15. Submit Form 4868 by the deadline, and you won’t have to send in your income tax return until October 15.

Here’s one thing to remember about extensions: It’s only an extension on filing your tax return, not an extension on paying the taxes due. You must still estimate your expected taxes in good faith and submit a payment in that amount to the IRS. When you file your complete return later this year, you might owe a bit more or receive a refund, depending how the final numbers compare with your previous estimated payment.

If you have any more questions about financial planning at this time, give us a call to schedule a consultation. We can help guide you even when things seem uncertain.