Tax Day Considerations
Covid-19 created financial challenges for many. Find out how it may affect your April 15 tax deadline.
Tax Day for most is April 15. Typically, there are no exceptions, unless the date falls on a weekend or holiday, in which case the deadline is the next day that isn’t a Saturday, Sunday, or holiday.
However, 2020 was unlike any year in recent history. With COVID-19 impacting last year’s tax-filing deadline — it shifted from April 15, 2020, to July 15, 2020 — many taxpayers have been asking what impact, if any, the pandemic will have on this year’s filing.
As of this writing (February 2021), the IRS began accepting tax filings on February 12, 2021, and the tax deadline remains April 15, 2021.
The IRS recommends filing for an extension as soon as you know that you’ll need one, as it will allow you time to fix and resubmit it prior to the April1 5 tax deadline if there are issues with your initial submission.
Q2 payment: June 15
Q3 payment: September 15
Q4 payment: January 15
If you earn tips, you will pay estimates monthly according to the following:
Unemployed in 2020? Read On
If you were unemployed in 2020 and received unemployment benefits, you should receive a Form 1099-G from the IRS. The IRS considers this money taxable income, and you must report it on your federal tax return. Depending on where you live, your state may also count unemployment benefits as taxable income.
If you received unemployment compensation by the federal or a state government, you should include this with your other income when you file your taxes.
For information and advice on preparing your tax returns, we recommend consulting a tax or financial professional.
Thanks for checking out the blog.
Joe Breslin, CFP®