May 17 is the new IRS tax deadline – this is what you need to know

Last year, the pandemic asked the agency to extend the April 15 to July 15 deadline for a wide range of tax files, but this year’s easing is closer.

Here are answers to questions taxpayers are asking.

Do I have an extra month to pay my taxes?

Yes. The new deadline for May 17 is for both payments and the submission of returns.

To whom does the delay apply?

The delay applies to individuals who submit forms 1040 and 1040-SR. It does not affect deadlines for corporate, partnership or non-profit tax returns.

What about estimated tax payments in the first quarter?

The deferral does not apply to the estimated tax payments for the first quarter of 2021. The deadline for that remains April 15. After that date, interest and penalties on unpaid amounts apply.

Do I need to take any steps to apply the delay to me?

No. The extension is automatic for individual taxpayers. The agency says it is not necessary to call the IRS or submit a form to be eligible for this extension.

Does the May 17 deadline apply to contributions for 2020 traditional IRAs, Roth IRAs and HSAs?

It is still unclear, but it is. The IRS will provide guidance on this issue in the coming days, and this V&A will be updated.

Can I still get an extension to file my tax return for 2020?

Yes. The deadline to file the 2020 tax return remains October 15 for taxpayers who file Form 4868 to apply for automatic renewal. The deadline to submit this form is now May 17, not April 15.

Taxpayers who submit it will have until October 15 to complete their paperwork, but they must pay by May 17 what they owe. On the day, interest and fines start to apply.

I live in Louisiana, Texas or Oklahoma. Am I subject to the new deadline of May 17?

No. Due to emergency declarations related to the storms in February, a wide range of deadlines for individuals and businesses in these states have been delayed until June 15th.

What about state tax deadlines?

“We expect most states to meet their deadlines with the new federal deadlines,” said Mary Peterson, executive director of the Federation of Tax Administrators, a state tax group.

She adds that expansion will be difficult for countries that need to communicate changes to taxpayers and extend contracts to recode their processing systems. States are also trying to evaluate and respond to changes in the U.S. rescue plan signed on March 11.

I have already submitted my 2020 return and am planning an automatic withdrawal of my tax payment for April 15th. Will the IRS automatically postpone this payment until May 17?

No, but taxpayers can act to change the payment date.

Many files authorize an withdrawal of electronic funds as part of the filing of their tax returns. The IRS says these taxpayers can cancel their payment by contacting the U.S. Treasury Financial Agent at 1-888-353-4537. Requests for cancellation of payments must be made two working days before the scheduled payment date at 23:59 ET. Taxpayers must then reschedule the automatic payment or send a check to the IRS.

For those using IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS), both have instructions for canceling payments, which must be made two days before the payment date. Use the IRS Direct Pay feature to pay for IRS Direct Pay. For EFTPS, log in and click Cancel a tax payment.

Taxpayers planning an automatic payment by credit or debit card should contact the card company to change the date.

I received unemployment benefits last year, and the law was recently changed to exempt up to $ 10,200 from federal taxes. What should I do?

If you have already filed your tax return for 2020, the IRS strongly urges you not to file an amended return. The agency has not announced what steps they should take, but plans to do so soon.

For those who have not yet submitted their 2020 return, the IRS issued guidelines on March 16 that include a worksheet and instructions for claiming the exemption.

—Richard Rubin contributed to this article.

Write to Laura Saunders by [email protected]