Tax day 2021 deadline: The last day you can file and how to get an extension

March 15, 2021 0 By boss

[ad_1]

gettyimages-1090495926

Getty Images

It’s officially tax season. On Feb. 12, the IRS began accepting 2020 income tax returns — and the deadline for those returns is coming in four weeks. Though there remains a possibility that Tax Day could be once again be postponed — a Congressional committee has now asked the IRS twice for a nationwide extension — the chances are increasingly slight. That means that the last day to file on time will again be the traditional (and oft-dreaded) date of April 15. 

So, the clock is ticking for all of us — including the millions of taxpayers that will be facing an array of new, and potentially complicated, tax issues. They include unemployment insurance claimsstimulus check income and questions about eligibility for the home office deduction, just to name a few. 


Now playing:
Watch this:

Your tax questions answered in 3 minutes



3:29

That noted, the best thing you can do is to start now. (This advice applies every year.) Filing early means a quicker turnaround on your refund and getting any missing stimulus money faster

Though the deadline to file your 2020 taxes is April 15, you can ask for more time by filing for an extension with the IRS. We’ve got all of the details about how to do that below.

Read more: Best tax software for 2021

Can I file my income taxes sooner than April 15?

Yes. And the sooner you file, the faster you will get your refund — if one is owed. Most refunds are issued within three weeks — though this year, with the IRS still working through a backlog of stimulus payments, it might take longer. The agency began accepting returns on Feb. 12, 2021. 

Read more: When will you get your tax refund? Possible dates and how to track it

What happens if I miss the deadline?

There’s an important distinction between filing late and paying late. If you need more time to prepare your tax return, you can request an extension from the IRS using Form 4868. If approved, you’ll get an extra six months, making Oct. 15 the deadline for your tax paperwork this year. 

But here’s a big, hairy note of caution: Even if you’re approved for the extension, you still have to pay your estimated taxes by April 15 in order to avoid penalties. (Here’s what you need to know about estimating your tax bill.) According to the IRS, the late payment penalty is “0.5% of the tax owed after the due date, for each month or part of a month the tax remains unpaid, up to 25%.” That’s just to start; if you fail to pay for an extended amount of time, the fines increase. And there is a “failure-to-file” penalty as well. 

But the IRS may waive the penalty if you can show “reasonable cause for the failure to pay on time.”

Can I request an extension for my business?

Yes. According to the IRS, businesses can file Form 7004 to request a deferral until April 15. But pretty much the same rules apply as with an individual; the business still needs to pay its estimated taxes by April 15 but can wait until Oct. 15 to file the return. 

Can I file for an extension for my state tax return?

Maybe. The rules vary from state to state, so you’ll need to check with your state tax agency to learn about your specific options for an extension. 


If you need help filing your state or federal taxes, there are plenty of good tax-preparation services to choose from — or you can always file your taxes for free

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

[ad_2]

Source link