Recently, the IRS announced that the tax deadline has been extended to July 15, 2020 from the usual deadline of April 15th. Anyone filing a federal income tax return for the 2019 tax year is eligible for this extension. This is also true for your PA state taxes. If you live in a state other than Pennsylvania, you should check to see if your state’s deadline has also been extended. Amid the COVID-19 pandemic, this allows taxpayers a few benefits:
- Taxpayers can defer federal income tax payments to the July 15th deadline, without penalty or interest.
- Individuals who were planning to file for an extension can potentially forgo that process if they weren’t going to meet the April 15th deadline.
- Retirement savers have more time to make contributions to their individual retirement accounts for the 2019 tax year. This includes Traditional IRAs, Roth IRAs, and SEP IRAs.
It is important to remember that if you are sending in a contribution check that is intended for the 2019 tax year, to note this on the check and to let your advisor know so they can confirm it is properly recorded.
Even though the tax deadline was extended, if you’re expecting a tax refund and haven’t yet filed, there’s no need to wait until July. If you lost your source of income and need additional funds, your tax refund can help pad your finances. If your income source is stable, consider using some of your tax refund to boost local business and fuel the economy. At Fort Pitt, we typically recommend methods to save and maximize on tax refunds, but right now our community could use the support. You can also read this post which contains an important tax saving strategy. If you have the means, consider putting funds into local businesses and help sustain their business through these difficult times.
If you have additional questions, the IRS has a helpful FAQ resource.
Fort Pitt does not provide tax advice. We encourage you to contact your tax professional with any questions.