|
|
Ted Phillips, The Del Ray CPA
(571) 312-1169
FAX (571) 227-7907
114 E. Randolph Avenue
Alexandria, VA 22301
|
|
|
|
IRS Extends (Some) Due Dates |
|
IMPORTANT DATES
April 15, 2021
First quarter 2021 estimated payments due
As of today: DC 2020 taxes still due
May 1, 2021
Virginia 2020 tax returns due
May 17, 2021
Federal and many state 2021 tax returns due
June 15, 2021
Second quarter 2021 estimated payments due
July 15, 2021
Maryland 2020 state tax returns due
|
ONE MORE QUESTION...
If we have not yet received your 2020 documents or if we are currently drafting your returns, please note:
Before completing your 2020 taxes, we will need to know if you received the first stimulus payment ($1,200 for most filers, sent in April/May of 2020) or the second stimulus payment ($600 for most filers, sent in January of 2021). If we have not asked already, please let us know on your Tax Questions or in a quick email if you received either or both. Thank you!
|
|
As many of you have read, on Wednesday evening the IRS officially announced that they are extending the deadline for 2020 federal tax returns from April 15th to Monday, May 17th, 2021.
While this is a small reprieve, that extension unfortunately did not change the April 15th due date for 2021 first quarter estimated payments. Thus, if you typically pay estimates, you will still need to pay the first quarter amount by April 15th. Furthermore, not all states have extended their filing deadline, including Virginia (due date remains May 1st). Here is a list of states that have provided updates to their usual deadline:
- Alabama - May 17
- California - May 17
- Colorado - May 17
- Illinois - May 17
- Kentucky - May 17
- Louisiana - June 15
- Maine - May 17
- Maryland - July 15
- Massachusetts - May 17
- North Carolina - May 17
- Pennsylvania - May 17
- South Carolina - May 17
- West Virginia - May 17
- Wisconsin - May 17
I have had several clients ask if the new due date means that I will not need to extend their returns. While we continue to work hard to file as many returns on time as possible, the lack of an extension on estimates and state returns means that our workload has not been eased very much. As soon as I have a good draft of your returns ready, I will be in touch with a list of any remaining items or wrap-up questions that need to be addressed before filing can be completed.
Thank you for your patience, and we will let you know if these deadlines change in the coming weeks.
|
ANOTHER ROUND OF STIMULUS PAYMENTS |
Some of you may have already received the latest stimulus payment to support Americans during the pandemic: last week, IRS began mailing and direct depositing payments to individuals. The payment dispersal will continue for at least the next several weeks, so it is quite possible that you qualify for a stimulus payment but will not receive one for some time. |
|
IRS has a payment tracker tool to get an idea of where your check is, but many taxpayers are finding that the tool does not have information for them yet, so it is best to allow a little more time.
This third check delivers $1,400 to individuals who make $75,000 or less annually ($2,800 to married couples making $150,000 or less). Above those income levels, the amount gradually decreases to zero for those with an AGI over $80,000 ($160,000 for couples). In most cases, your income is based on your 2020 tax returns, or your 2019 returns if we have not yet filed this year. Your federal returns are also where the IRS pulls your bank information from for direct depositing the stimulus; if you do not use direct deposit, you will likely receive a paper check or debit card.
At this point, we have no control over when or in what manner your stimulus check arrives.
|
|
In the same bill that established the third round of stimulus payments, Congress excluded $10,200 of unemployment paid from taxable income, so you will not need to pay taxes if you received this amount of unemployment in 2020. If you received more, that excess is still taxable.
Our software will update to reflect this new tax law. If your 2020 tax returns were already filed reporting your full amount of unemployment compensation, there is no need to amend your returns. The IRS will adjust your returns automatically to remove the first $10,200 of unemployment compensation from your taxable income.
|
|
|
|
Ted Phillips, The Del Ray CPA
(571) 312-1169 | FAX (571) 227-7907
|
|
|
|
|
|
|
