Tax deadline postponed: Why you should still file as soon as you can
Tax day officially has been moved to July 15 from April 15. But not all Americans should wait to file.
In a pair of tweets on Friday, Treasury Secretary Steven Mnuchin announced that the president was extending the tax deadline by three months for all Americans and businesses as the country and its citizens focus their efforts on the coronavirus pandemic.
The new deadline comes after the White House earlier this week said that taxpayers could defer any tax payments — up to $1 million per individual — for 90 days, interest free and penalty free.
States, which set their own tax filing deadlines, may not follow the deadline extension, so check with your state’s tax authority for guidance.
It’s also unclear if taxpayers can file for an additional tax extension like in more normal times. Typically, you can file for an extension to Oct. 15, but you’re still required to pay any tax liability you owe.
Why you should still file your taxes now
While the deadline extension comes as some relief for weary Americans who may be wrapped up in their own coronavirus response, those who are expecting a refund may not want to postpone their taxes, tax experts and Mnuchin said.
About 76.2 million Americans have already filed their taxes, with nearly 59.2 million receiving a refund of just under $3,000 apiece. That’s just over half of the 111.8 million taxpayers who received a refund last year.
That refund could be especially helpful for taxpayers who are hunkered down and can’t go to work as much of American life is shut down to battle the spread of the illness.
It’s also not entirely clear how the coronavirus could impact the Internal Revenue Service, said Logan Allec, a certified public accountant and owner of the website Money Done Right.
“Although the government is rapidly ramping up its response to the coronavirus crisis, it's possible that the situation could worsen and that refunds could be significantly delayed,” Allec said. “So if you like cash in your bank account rather than in the government's coffers during an unprecedented time like this, file your return ASAP and get that refund if you're expecting one.”
Janna is an editor for Yahoo Money and Cashay, a new personal finance website. Follow her on Twitter @JannaHerron.
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