The IRS has extended the April 15 tax filing and payment deadline to May 17 amid rising unemployment numbers to give taxpayers more time to file and settle bills, as filing also critical to receiving stimulus checks and tax credits.
The IRS Extends Tax Filing Date Until May 17
The Internal Revenue Service has extended the annual tax filing date of April 15, moving the deadline to May 17. In addition, the extended deadline also will delay payment of any money owed to the IRS until May 17, CNBC reported. Taxpayers who need further time to file their returns can also request an extension until October 15 without penalty, by filing form 4868. However, while filing can be extended, it does not extend payments owed past May 17.
No Extension for Estimated Payments to IRS, State Taxes
Even though the filing and payment deadline has been extended to May 17, it does not apply to those taxpayers who make estimated quarterly payments – those are still due on April 15.
The IRS extension to May 17 only applies to federal income taxes and returns. Taxpayers need to check on due dates for the state in which they live, as not all states follow the same filing deadline as the federal government.
Tax Changes From Latest Relief Bill
The latest stimulus package, the $1.9 trillion American Rescue Plan, signed into law by President Joe Biden on March 11, added a number of changes to the tax laws.
Among the changes are:
Expansion of the child tax credit to $3,000 annually for children ages 6 to 17 and $3,600 per year for those under 6.
The first $10,200 of unemployment income, or $20,400 for married couples filing jointly, tax-free for filers with 2020 adjusted gross income of less than $150,000 (for both singles and couples). By summer, parents could begin receiving a monthly portion of the credit.
New Jobless Claims Rise to 770,000
The latest unemployment numbers are in, showing 770,000 new weekly jobless claims by first-time filers as layoffs have increased.
This marks the 52nd straight week of new unemployment filings hovering above 695,000 despite declining infections, easing business restrictions and rising vaccinations, the New York Post reported.
The latest numbers bring the total unemployment numbers for the pandemic to nearly 81.9 million, which equals over half of the nation’s workforce.
Economist had predicted that filings would drop to 700,000 last week, according to Wrightson ICAP, which would have been the lowest since the pandemic caused the historic employment crisis a year ago, but instead, the numbers climbed beyond expectations.
Last week, President Joe Biden signed the $1.9 trillion American Rescue Plan, extending a $300-a-week supplement for standard jobless benefits in addition to unemployment compensation.
