Does it seem like planning for your finances is tricky right now? Amongst all of the constant news of COVID-19, you may be feeling uneasy about your financial situation.
One recent announcement is that the United States has officially pushed Tax Day back 90 days this year from April 15, 2020 to July 15, 2020. Steven Mnuchin, the US Treasury Secretary, originally announced that tax payments would be delayed by 90 days. On March 20, 2020, he announced that not only will payments be delayed, but Tax Day will be moved to July 15, as well. Generally, your taxes need to be filed and paid by April 15.
“We are moving Tax Day from April 15 to July 15,” he tweeted. “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
While the deadline has been extended, Mnuchin stresses that those who are expecting a refund should still file as soon as possible, as many Americans are needing the extra income right now. “I encourage all taxpayers who may have tax refunds to file now to get your money.”
The economic impact of COVID-19 has the potential to be one of the most severe downturns that many have seen. However, the US government is trying to alleviate some of the potential losses by introducing a massive stimulus package to help Americans and business owners that include physical checks and extending paid sick leave.
You may also be wondering how this new deadline affects your IRA contributions for the 2019 tax year. When it was announced that the Treasury Department extended the tax payment date but not the filing date, your IRA contributions still needed to meet the April 15, 2020 deadline. Now that they have extended the filing date, American citizens have until July 15, 2020 to contribute to their IRAs. Though there is much turmoil in the global economy right now, Investment News stresses that this is a good thing.
“This will be extremely helpful. Many people make prior year IRA contributions at the last minute even in normal times. Given the current dire circumstances, it might be tough to get those checks into IRAs if advisers’ offices are either closed or working with skeleton crews.”
Note that these new deadlines apply to federal tax filings only. States are able to set their own deadlines, so make sure to check with your state’s laws and deadlines. For instance, California has extended the deadline to file and pay their state taxes until June 15, 2020. It’s also important to keep in mind that taxpayers are still able to request a six-month extension to file their returns. This is the same as any other tax year.
Planning for your finances right now may seem trickier than ever, but it’s important to keep a level head, stay up-to-date on announcements, and save as much as possible right now. While it’s impossible to predict what this rapid-changing economy will look like in one, two, even six months from now, you can make good decisions to help your financial future.
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