Tax Filing Deadline Extended

Soon after publishing our last blog post, the Internal Revenue Service announced a new deadline for filing FEDERAL taxes. Individuals now have until May 17, 2021 to submit returns. Then this week, the IRS made another announcement stating that the May 17 deadline also applies to contributions to IRAs and Health Savings Accounts.

But what about STATE taxes? As soon as I heard about the IRS decision, I reached out to our friends at the Indiana Department of Revenue to find out if Hoosiers could expect the same change for their STATE returns. The following comes from DOR’s Tax Talk blog, published on March 24.

Last week, the Internal Revenue Service (IRS) extended the individual filing and payment deadline to May 17, 2021. The question you have been waiting for has been answered! Yes, DOR is also extending the individual income tax filing and payment deadlines to align with the IRS.

To make tax filing simple and easy we knew aligning with the IRS deadline was the best thing do to. However, with the extended deadline, we still encourage you to file as soon as possible and choose electronic filing for the fastest service.

What does this mean for you?

Individual tax returns and payments, originally due by April 15, 2021, are now due on or before May 17, 2021. Returns included are:

• IT-40
• IT-40PNR
• IT-40RNR
• SC-40
• IT-9

All other tax return filing and payment due dates, including the deadline for first quarter estimated tax payments, remain unchanged.

Additional information

If you are unable to file by the new May 17, 2021, deadline you can file an extension directly with DOR or with the IRS. If the IRS extension is granted, the Indiana extension is automatically granted. A timely filed extension moves the federal tax filing deadline to October 15, 2021, and the Indiana filing deadline to November 15, 2021.

Reminder: the extension only shifts the filing deadline and not the payment deadline. Ninety percent of the taxes owed are still required to be paid by May 17, 2021, to avoid penalties.
Other helpful information including the latest forms, FAQs and tax tips for people who collected unemployment in 2020 is available on DOR’s website.

I encourage you to read the previous MoneyWise Matters post, published on March 17. It tackles other major changes that could influence your tax filing, including a new retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. We’re still waiting for more information from the IRS about this change. On March 12, the IRS announced that it is reviewing implantation plans for the American Rescue Plan. If you have already filed, the IRS asks that you NOT file amended returns at this time. If you haven’t filed yet, the IRS “will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return.”

We’ll keep you posted about any and all changes created by the most recent stimulus bill and any future legislation that could impact your financial life. Please follow us on Facebook and Twitter for the timeliest updates.