As the coronavirus pandemic continues to upend daily life for millions of Americans, the IRS has issued additional guidance for taxpayers. From extended deadlines to stimulus checks, these are the changes we can expect:
Extended deadlines
The filing and payment deadline has been extended from April 15, 2020 to July 15, 2020. This extension is automatic, meaning taxpayers will not need to file any additional paperwork in order to take advantage of the new deadline. The extension also means that taxpayers who owe money on their 2019 returns will not need to submit payment until July 15th.
If you’ve already submitted your 2019 return, you can check the status of your federal refund online and the status of your CT refund by phone at (860) 297-5962.
Delayed estimated payments
Some taxpayers with large tax burdens may pre-pay their 2020 taxes in quarterly installments, also known as estimated payments. Due to the pandemic, estimated payment deadlines are as follows: payments originally due April 15, 2020 are now due July 15, 2020. Payments due after July are unaffected and should be submitted as usual.
Tax-free stimulus checks
Congress has passed a $2.2 Trillion stimulus package that includes direct payments to taxpayers. While payments will vary based on income, filing status, and number of dependents, most middle and working-class Americans can expect to receive a relief check in the next 2-3 weeks. This payment is being issued tax-free.
More time for IRA and HSA contributions
Have an IRA or HSA? You can continue to make 2019 tax year contributions to your account until the new July 15th deadline. However, this does not apply to 401(k) contributions, which are still limited to the usual April 15th deadline.
Sara McKinney
saractag@gmail.com
As Cowen Tax Advisory Group’s Digital Content Marketing Specialist, Sara provides in-house copywriting and manages the company’s electronic records system, email marketing, and blog.
