COVID-19 has led to major changes in our lives. We are changing how we work, educate ourselves and shop. We are changing how we socialize and buy our groceries. Now, according to a recent announcement from the United States Department of Treasury, we are also able to change how we do our taxes.
What has changed?
Treasury Secretary Steven Mnuchin recently announced the government has decided to provide an extension to the federal tax payment deadline. Instead of the regular annual April 15 due date for your tax bill, the agency has pushed tax payments for 2019 returns back 90 days. Mr. Mnuchin also stated the government would not charge interest or penalties for those who choose to take advantage of this extension period.
In addition to the filing extension, the government is also allowing individuals to defer up to $1 million in tax liability.
What if I am not ready to file my taxes?
Those who cannot file their taxes by the April 15 deadline still have options. Taxpayers can request a six-month extension from the Internal Revenue Service (IRS).
Are there any other changes likely to happen in the near future?
Lawmakers are also considering postponing the estimated quarterly tax payments due from self-employed workers and businesses. The IRS generally requires these taxpayers to make their first quarterly payment of the year on April 15 as well.
In short: individuals should plan on filing their taxes on April 15 but can hang on to their money. The bill is not due until July.