21.5 C
New York
Sunday, June 13, 2021

The Tax Filing Deadline Was Delayed to May 17. Here’s What to Know.

“They hear Tax Day is moved to May 17, so a lot of people will go to their preparer on April 30,” Mr. Stewart mentioned. “Unfortunately, the first-quarter estimated payment is late.”

The convention and different teams representing tax professionals had urged the federal government to postpone the estimated tax deadline as effectively. In congressional committee testimony in March, the I.R.S. commissioner, Charles P. Rettig, mentioned the estimated tax deadline hadn’t been modified as a result of it will, in impact, be giving “a break” on curiosity and penalties to rich individuals, who would make investments the money as a substitute of paying the federal government.

But individuals who file estimated taxes additionally embrace sole proprietors and employees within the gig financial system with modest incomes, accountants say. Many individuals who lost jobs within the pandemic switched to work delivering meals and groceries ordered by cellular apps, mentioned Melanie Lauridsen, senior supervisor for tax coverage and advocacy on the American Institute of Certified Public Accountants.

“That’s where the need is,” Ms. Lauridsen mentioned.

The disconnect between the submitting and estimated tax deadlines means tax preparers are pushed to get returns achieved by the normal deadline anyway. “It’s putting a tremendous amount of stress on tax preparers,” mentioned Rhonda Collins, director of tax content material and authorities relations with the National Association of Tax Professionals.

In basic, filers should estimate what they owe and spherical up to cut back the danger of underpaying. “It feels like it’s very much a guesstimate,” Ms. Collins mentioned.

Should you incur a penalty whenever you file your tax return subsequent year, you may request an abatement. Often, the I.R.S. is lenient with first-time errors, she mentioned, particularly when there are extenuating circumstances.

It’s additionally vital to maintain observe of your revenue in 2021, tax professionals say. Many individuals had decrease incomes than normal throughout 2020 due to the pandemic, and will see them rise in 2021 if the pandemic wanes as anticipated and the financial system expands. If your revenue is popping out to be increased than anticipated, you could want to enhance the quantities of your estimated funds later within the year.

Latest news

Related news

LEAVE A REPLY

Please enter your comment!
Please enter your name here