Tax Deadlines Extended to July 15, 2020

Patrick Cote |

By: Susan Powers

In March, the Treasury Department and Internal Revenue Service announced the deadline to file and pay taxes is automatically extended from April 15, 2020, to July 15, 2020 in an effort to give taxpayers more time to deal with their taxes amid the coronavirus outbreak.

 

How it works

  • Defer federal income tax payments without penalties and interest, regardless of the amount owed

  • Applies to all taxpayers, including individuals, trusts and estates, corporations and those who pay self-employment tax

  • No need to file any additional forms or call the IRS to qualify 

  • Also applies to estimated tax payments for the first quarter 2020, however, second quarter 2020 payments are still due by June 15

  • Most of the states that have an income tax follow the federal tax deadline

 

Required Minimum Distributions (RMDs)

RMDs are now waived for 2020 for:

  • any account owner who is 72 or older in 2020

  • any account owner who turned 70 ½ in 2019 and delayed taking his or her delayed RMDs by April 1, 2020

  • all beneficiaries of inherited IRAs for decedents who died prior to 2020 

 

Other considerations for IRAs and HSA accounts

You have until the July 15, 2020, tax deadline to contribute to your IRA, either Roth or traditional, and your HSA for the 2019 tax year.

  • The 2019 maximum contribution amount for either type of IRA is $6,000 — or $7,000 if you’re age 50 or older

  • The 2019 limits for HSAs are $3,500 for an individual HSA owner and $7,000 for a family

 

As your financial advisor, we will work closely with your tax professional to better understand and present all of your options to you.