For most people, the holidays are one of the busiest and most stressful times of the year. For tax professionals, that honor goes to this time of year instead: tax season. Tax professionals don’t get a monopoly on being stressed, though. This is why so many people procrastinate about doing their taxes instead of just getting them done. If one of the things stressing you out about taxes is the looming deadline, here’s some good news (that, granted, will allow you to procrastinate more). Both the federal deadline and the state tax deadline in Maryland have been extended. Read on to learn what it all means.
Why Is It Being Extended?
The tax deadline this year is being extended due to the continuing COVID-19 pandemic. This public health crisis has impacted businesses and individuals drastically, and many people find themselves in unfamiliar tax waters. If you’ve received unemployment for the first time or the stimulus checks increased your total income more than expected, your tax circumstances could be different than they’ve ever been—use this extra time to find and speak to a professional.
When Is It Extended To?
The normal filing deadline for taxes is April 15th. This year, that deadline has been extended by one month to May 17th, 2021. This means that you have until mid-May to file your tax return, but it also means you have that additional month to get your funds in order if you or your business owes taxes. If you plan to file for an extension, that form is still due on April 15th, and it could give you an additional 6 months to file (this extension doesn’t apply to payments, there will still be fees and penalties if you don’t make your payment by this year’s deadline.
Additionally, the state of Maryland has extended state tax deadline. While that deadline is usually the same as the federal deadline, this year, it is extended to July 15, 2021.
How Could This Benefit You?
The biggest benefit to you is that it gives you more time to prepare for tax day and get all your paperwork in order. An additional benefit is that the change also pushes back the deadline to contribute to your IRA for 2020, assuming you haven’t maxed out your contributions already (there is a limit to how much you can contribute each year, currently $6000 if you’re under 50 and $7000 if you’re over 50).
Contact Bowman & Company CPA Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services aim at decreasing your taxes and increasing your net worth through responsible, timely, and accurate recordkeeping. We offer our services to clients throughout the Washington, D.C. metropolitan area including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.