Extended filing deadline for Individual returns (form 1040)
The IRS had extended the filing deadline for individual income tax returns (form 1040) ONLY to May 17, 2021. Tax payments can be made up to the May 17th filing date for returns with amounts due with NO penalty.
This does NOT include estimated tax payments – those first payments are still due on April 15th 2021.
Taxpayers will still need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines can vary and aren’t always the same as the Federal tax deadline. The IRS is asking taxpayers to check with their State. Connecticut is following the Federal filing dates.
Corporate, Estate and Trust Tax Returns will still need to be filed by April 15 – any other entities, returns and taxes that are normally due in April have NOT been extended.
Stimulus third round and 2019 returns.
Many taxpayers are still waiting for issues involving their 2019 tax returns to be resolved. The IRS has indicated that the backup in processing some 2019 returns may not get cleared up until sometime this summer especially those who had to file a paper return due to identity theft issues or the returns that were pulled for manual review. This may delay the issuing of the third round of stimulus payments if a 2020 return has not yet been filed.
The latest stimulus package reduced the phase out from the previous payments sent out. This third round of payments are reduced with AGI (Adjusted Gross Income) between $150,000 and $160,000 for joint filers with anything over the $160,000 not qualifying for any funds from the third round of stimulus. Single filers are reduced between $75,000 and $80,000 with no funds being received on AGI’s of over $80,000.
Also included in the stimulus bill is the exemption of $10,200 of unemployment for any taxpayers with an AGI less than $150,000. On a joint return that’s $10,200 per spouse with a joint AGI of less than $150,000. The IRS has not come out with final clarification on how they will handle this but did indicate that anyone who has already filed their 2020 returns to NOT file an amended return, they will automatically adjust the amounts and refund the tax.