Dear M&M: With everything going on I heard there are new dates on when you are supposed to file taxes. Do you know about any new deadlines to file 2020 income taxes?
Dear Bill: Last year, Americans got a bit of a breather from their annual tax bill, as the Internal Revenue Service pushed back the time to file by three months because of the pandemic.
This year, though, it looks like things are back to normal. In 2021, the date or Tax Day is Thursday, April 15, 2021. This is the tax deadline to file your federal income tax return.
Do I have to file my taxes by April 15? No, but there’s a catch. If you request a tax extension by April 15, 2021, your tax return will be due on Oct. 15, 2021.
However, your tax bill will still be due on April 15, 2021. Getting a tax extension provides more time to file your tax return, but it does not provide more time to pay your taxes. Don’t forget about your state tax return.
Most states synch their income tax return deadline with the federal tax due date – but there are some states that have different deadlines. Check with the state tax agency where you live to find out when your state tax return is due.
In Arizona, the filing extension can provide an additional six months after the original due date of April 15, 2021 to October 15, 2021 just like the Federal dates to file and pay. To avoid penalty and late fees you have to submit taxes owed by April 15th even if you submitted an extension to file. They have a 90% rule if you pay at least 90% of the taxes due you probably won’t be charged any penalties or late fees.
Source: IRS and Arizona Department of Revenue
ASK M&M is prepared and submitted by Mark Schmitt, director of the Small Business Development Center at Cochise College; and Mignonne Hollis, executive director at the Arizona Economic Development Foundation. To ask your questions: Call the Small Business Development Center (SBDC) at Cochise College (520) 515-5478 or email firstname.lastname@example.org or contact the Arizona Regional’ Economic Development Foundation at (520) 458-6948 or email email@example.com; www.aredf.org.