Here’s how Taxpayers Can get Ready to File their 2021 Taxes

taxpayers have not started already, they should consider beginning the process of gathering tax documents and scheduling a tax filing appointment in order to ensure that their tax filing experience goes smoothly.

Here are some ways individuals can prepare in advanced:

Check your withholdings ASAP! Taxpayers should review their withholdings from the prior year to see if they were withholding enough during the year or if they should prepare to expect a tax balance with the IRS. For individuals who are still unsure if they had enough federal taxes taken out, they should review the following:

  • You received a smaller refund than expected after filing your 2019 taxes last year.
  • Owed an unexpected tax bill last year.
  • Experienced personal or financial changes that might change your tax liability.

To avoid any tax time surprises for future years, taxpayers can utilize the Tax Withholding Estimator to perform a quick paycheck or pension income checkup. Doing this in advance, can help taxpayers avoid owing a tax liability.

Gather and store all tax documents for at least three years

Whether you store your documents electronically or keep physical paper statements, having an organized recordkeeping system is vital to filing an accurate tax return. Taxpayers should have the following tax documents on hand:

  • 2019 tax return.
  • Form W-2 from employers.
  • Form 1099 from banks and other payers.
  • Forms 1095-A from the marketplace for those claiming the premium tax credit.
  • Form 1099-NEC, Nonemployee Compensation.
  • Notice 1444, Your Economic Impact Payment.

Verify your mailing and email address

In order to ensure all tax forms get sent to a taxpayer on time, people should double-check and confirm with their employer(s) and bank that their current mailing and email addresses are still correct.

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.

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Did your State Tax Filing Deadline Change? Here’s what You need to Know.

The IRS just announced that they will be extending the federal tax deadline from April 15 to May 17. This will allow taxpayers additional time to file their tax return during the ongoing pandemic and give the IRS some breathing room to also distribute the third round of stimulus checks to qualifying individuals. Although the federal tax deadline has been extended, taxpayers should be aware that state tax extensions may differ. Here are all the updated state tax deadlines you should be aware of.

Tax Extensions By State

As of now, 35 states have issued their guidance on state tax extension deadlines to May 17, 2021:

Arkansas recently announced that it will waive requirements for a written request for an extension to file an individual income tax return for the duration of the emergency. The state of Arkansas will also extend the tax filing and payment deadlines to May 17, 2021. The Arkansas tax extension will also apply to 2020 S corporation, fiduciary and estate, partnership, and composite returns.

California will extend its state tax filing deadlines and payment due date for individuals to May 17, 2021. Taxpayers should be aware that the California tax extension does not apply to estimated tax payments due April 15, 2021.

Connecticut has extended its state tax filing deadline for individuals to May 17, 2021. The Connecticut tax extension aligns with the new federal deadline.

Colorado has announced that 2020 individual income tax payment and filing deadline has been extended to May 17, 2021. Although the Colorado tax deadline has been extended, penalties and interest will be assessed if a payment is made after the tax deadline. The Colorado tax extension does not apply to estimated payments for the 2021 income tax year that are due on April 15, 2021.

The District of Columbia income tax returns have been extended until May 17, 2021. The state filing deadline also applies to all D20, D-30, D-40, standalone Schedule H, D-41, D-41, D-40B and D-65 tax filers and combined return filers. Taxpayers should be aware that The District of Columbia  tax extension does not apply to estimated tax payments due on April 15, 2021.

Delaware has extended its deadline to May 17, 20201 for both income tax returns and composite returns. The Delaware tax deadline extension does not extend to estimated payments for the 2021 tax year and will remain on April 30, 2021.

Georgia will extend the 2020 state individual tax filing payment deadline to May 17, 2021. The Georgia tax extension will not apply to estimated tax payments due on April 15, 2021.

Idaho recently introduced legislation to extend its tax filing deadline to May 17, 2021 to allow individuals more time to file their income tax returns. A decision on if an Idaho deadline extension will be granted is expected to be made on or after April 6, 2021.

Illinois 2020 state tax filing and payment deadline for individuals has been extended to May 17, 2021. The Illinois tax extension will not apply to 2021 estimated tax payments due on April 15, 2021.

Indiana announced that individual tax returns and payments originally due by April 15, 2021 will be extended to May 17, 2021.

Kansas has extended its tax filing, payment deadline for individual returns, and 2020 fiduciary income returns, to May 17, 2021. 2021 Kansas estimated tax payments will still be due April 15, 2021.

Kentucky the 2020 state tax filing and payment deadline for individuals has been extended to May 17, 2021. Taxpayers are reminded that the Kentucky tax extension does not apply to 2021 estimated tax payments due April 15, 2021.

Massachusetts will allow individuals additional time to file and pay their taxes by extending the tax deadline to May 17, 2021. The Massachusetts tax extension deadline will not apply to 2021 estimated tax payments.

Maine has announced that the state tax and payment deadline for Main 2020 individual income taxes has been extended to May 17, 2021.

Michigan has extended the state tax filing deadline and payment deadline to May 17, 2021. The first quarter estimates for tax year 2021 remain due on April 15, 2021.

Minnesota will allow individuals to file their state taxes and make their payments without having to worry about penalties and interest accruing up until May 17, 2021. This grace period does not apply to individuals who need to pay their 2021 estimated tax payments.

Mississippi will allow 2020 individual income tax returns to be filed until May 17, 2021. It is recommended to pay any tax due on or before May 17, 2021 to avoid and penalties or interest.

Missouri announced its 2020 tax deadline extension and payment deadline from April 15, 2021 to May 17, 2021. The Missouri tax extension does not apply to estimated tax deadlines that will be due on April 15, 2021.

Montana has extended both its filing and payment deadlines for 2020 individual income tax returns to May 17, 2021. Taxpayers are reminded that quarterly estimated payments for 2021 income taxes have not changed.

Nebraska announced that its state tax extensions will apply to both 2020 state individual tax filing and payment deadlines. Individuals will have until May 17, 2021. First quarter estimates for the 2021 tax year will remain on April 15, 2021.

North Carolina announced its state tax extension deadline for taxpayers to file their 2020 individual income taxes has been moved to May 17, 2021. Penalties will not be assessed for individuals who file and pay their taxes after April 15, 2021. Payments made after this date will cause individuals to accrue interest. The North Carolina tax extension does not apply to trust taxes such as sales and use or withholding taxes. Estimated tax payments are still due on April 15, 2021.

North Dakota will allow individuals to file their states tax return and pay any related tax up until May 17, 2021. Penalties and interest will be waived until May 17, 2021.

New Jersey 2020 state deadline extensions for income tax filing and payment have been extended from April 15, 2021 to May 17, 2021. The extended New Jersey tax deadline does not apply to estimated tax payments for the 2021 tax year and are due on April 15, 2021.

New Mexico tax deadline extension for filing and paying 2020 personal income taxes has been extended until May 17, 2021.

New York has extended its 2020 personal income tax returns and any related payments until May 17, 2021. Any 2020 personal income tax returns and related payments of tax that was previously due on April 15, 2021 will not be subject to any failure-to-file, failure-to-pay, late-payments, or underpayment penalties or interest if filed and paid by May 17, 2021. The New York state tax extension does not apply to estimated tax payments for the 2021 tax year are due on April 15, 2021.

Ohio will extend its state tax deadline to file and pay 2020 individual income and school district taxes to May 17, 2021. 2021 estimated tax payment due dates have not been extended.

Oregon automatically extended its state tax extensions for 2020 income tax filing and payment due date for individuals from April 15, 2021 to May 17, 2021. Penalties and interest will begin to accrue an any unpaid balance beginning May 18, 2021.

Pennsylvania has announced its state tax extension for taxpayers to file and pay their 2020 personal income taxes will be May 17, 2021. 2021 estimated tax payment due dates were not extended. 

Rhode Island will allow individuals to file and pay their 2020 individual income taxes up until May 17, 2021. The Rhode Island tax filing extension does not apply to estimated tax payments for the 2021 tax year that are due on April 15, 2021.

South Carolina announced its state tax extension for filing and paying 2020 personal income taxes until May 17, 2021. This South Carolina tax extension does not apply to estimated tax payments for the 2021 tax year that are due on April 15, 2021.

Tennessee extended its due date for filing and paying the Hall income tax from April 15, 2021 to May 17, 2021. Franchise and excise tax have been extended to May 17, 2021 for individuals who file a franchise and excise tax return using Schedule J2, Computation of Net Earnings for a Single Member LLC Filing as an Individual. Both interest and late-filing penalties will not be applied to payments made and returns filed on or before May 17, 2021. Estimated tax payment due dates have not been extended.

Utah announced its tax deadline extension for filing and paying 2020 personal income taxes until May 17, 2021. The new Utah tax deadline does not apply to estimated tax payments for the 2021 tax year and are due April 15, 2021. Taxpayers are reminded that interest and penalties will not accrue if payment requirements are met by May 17, 2021.

Virginia has extended its state tax filing deadline for individuals to May 17, 2021. This relief does not apply to estimated tax payments for 2021 tax year that are due on April 15, 2021.

Vermont announced its tax extension for 2020 personal income tax filing and payment due date to May 17, 2021. Interest and penalties can be avoided if payment requirements have been met by May 17, 2021.

West Virginia will allow 2020 individual income tax returns to be filed until May 17, 2021. It is recommended to pay any tax due on or before May 17, 2021 to avoid and penalties or interest.

Wisconsin announced its state tax extensions for 2020 personal income tax filing and payment. Taxpayers are expected to file and meet any payment requirements by May 17, 2021 in order to avoid penalties and interest.

Texas, Oklahoma, and Louisiana state tax deadlines extended due to winter storms

The IRS recently announced that they will be providing tax relief to the victims of the winter storms in Texas, Oklahoma, and Louisiana. These states will have until June 15, 2021 to file their individual and business tax returns and make any tax payments. The May 17 tax filing deadline and payment extension relief does not apply to these three states. 

For additional information on your state’s tax deadline, you can visit the Federation of Tax Administrators website.

To learn more about the new tax filing deadline, click here.

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