Would the IRS consider postponing Tax Day this year? A request has been made. Sarah Tew /
If the idea to get your Federal income tax returns filed before the April 15 deadline stress you out, you may find comfort in knowing that the The IRS could grant a request to extend the filing date a few months. A committee of the House of Representatives argued with the IRS on February 18 for an automatic extension of the file submission deadline (without people needing to file for an extension ) would offer taxpayers much needed relief from the financial fallout of COVID-19 Pandemic . Tax season is also shorter this year, having started on February 12 instead of the end of January as usual, leaving less time for people to file a return.
Because of the coronavirus, which has caused widespread job losses and pushed millions of people into poverty, The IRS has pushed the deadline for filing federal tax returns in 2020 to July 15, to give taxpayers more time to file.
Extend the the tax filing deadline could affect more than your federal income tax return. With the Congress binding missing stimulus payments from this year's tax returns, and in some cases, probably using your 2020 income for determine the amount of a third stimulus check , the extension of the federal tax filing deadline could havea significant impact on your financial situation. Here's what we know about this year's Tax Day, and how getting it back could affect you.
What exactly has the House asked the IRS to do about this year's tax deadline?
On February 18, the House Ways and Means Committee sent a letter to the IRS urging the agency to delay the production deadline of your tax return this year beyond April 15 .
The letter did not suggest a specific new deadline for filing federal taxes, but it did point out that the IRS had extended the deadline for 2019 taxes by three months, to the 15th. July, due to the coronavirus. The the committee urged the IRS to extend the tax filing period again this year, "to eliminate unnecessary anxiety for taxpayers and practitioners.
The IRS has not publicly responded to the committee's request. contacted the IRS for comment.
Watch this: Testing stimulus # 3: What you need to know 2:59
How would a new tax deadline affect the third round of dunning checks?
From the stimulus payments and your tax return is locked this year , pushing back the tax date would affect the third stimulus check .
First, Congress proposes that the IRS use information about your 2020 tax return , if processed, when it determines the amount you will receive from your third stimulus check . Specifically, the IRS would examine the AGI, or adjusted gross income , on your 2020 form to help you determine your payment, using a new stimulus control formula . But the agency doesscale would use your 2019 return if you had not yet filed your 2020 form. It could work in your favor if your 2019 income was less than your 2020 income. However, if your 2020 tax return was brings you a third, larger stimulus check , as if you have more dependents , you want to file a return as soon as possible, so the IRS will process your 2020 taxes before releasing your third stimulus check .
Extending the tax deadline would be gives you more time to file , but again that would also mean that you had to wait longer to receive any missing raise amount, and if there is a difference between your 2019 and 2020 fees, you will have to wait until 2021 tax season to claim it .
What a new tax deadlinee could mean your missing stimulus money
Your fed This year's general tax returns will also allow you to recover the money the IRS owes you from the first two stimulus checks . If you didn 't receive payment, or if you received less than you had, eligible to receive , you can claim this money on vos federal tax forms as a rebate credit when you file this year. That's fine for non-filers too - those who aren't normally required to file a tax return. If you wait to file your tax returns closer to a new later due date, you are also waiting to receive your money , which will be pooled in your tax return .
Congress has tied your taxes and your stimulus check. Sarah Tew /
If the IRS extends the filing deadline, could you delay paying your taxes as well?
If you file a tax extension , this gives you more time to complete and send your documents to the IRS. But that doesn't allow you to pay the taxes you owe. Whether it's April 15 or later, the IRS expects you to pay by the filing deadline or you will also be responsible for paying interest accrued over the amount plus a late payment penalty.
Would your state's tax due date also change with the new deadline?
Last year, all states that collect personal income tax changed their reporting deadlines to July 15, 2020, the federal tax deadline, according to the American Institute of CPA . If the IRS extends the filing deadline again this year, we expect states to follow suit.
For more details on taxes this year, we detail the difference between a tax refund and a tax return , how tax season is different in 2021 and three reasons to sign up for direct deposit when filing your taxes.