Due to the COVID-19 pandemic, the federal and state tax deadlines have been extended to July 15. You do not have to file a request for this extension. The deadline for the first quarterly payment for those filing estimated taxes has also been extended to July 15 with no penalties or interest.
AARP has suspended tax preparations until further notice because of the COVID-19 outbreak. AARP states, “We will continue to assess whether we can open again in some or all sites for the remainder of the (extended) tax season. Check the web page periodically or call 1-888-227-7669 for updates about the status of Tax-Aide sites. Those with tax appointments at Seniors in the Park will be called when and if tax preparers will be returning. Those filing Homestead only, have the option of filing with their 2020 tax return next year.
Reasons why you might consider filing soon in spite of the deadline:
- One of the most common reasons to file taxes early is to receive a faster tax refund. Currently IRS indicates they are still processing most refunds within 21 days. Who knows what delays might occur later if COVID-19 gets a lot worse. Filing your return electronically with direct deposit into your bank account is the fastest way to get your refund.
- If you have already completed your tax return, you should still send it in as soon as possible but can delay submitting payment until the new July 15 deadline, according to Ben Riley, CPA on kiplinger.com. By filing your completed 1040 earlier, you will have more time to make and plan for the potential financial moves necessary to arrange your payment. It also allows the IRS to review your tax return and agree to your tax liability. In the event you made an erroneous tax deduction, claimed a tax credit you should not have, or made an arithmetic mistake, you will have more time to prepare in the event IRS disagrees with the information stated on your return.
- By delaying filing, there could be greater potential for identity fraud. By allowing scammers more time to file a return and claim a refund on “your” behalf, the opportunity to defraud you of your refund is greater.
Can you wait until July 15 to make 2019 contributions to your IRA or HSA? As of March 21, the Treasury has not provided guidance on whether there will be a deadline extension for making contributions to your health savings account or individual retirement accounts.