The IRS extended the federal tax deadline. State returns are due here
Tax season could be a little more complicated for filers in certain states.
The latest move by the IRS to extend the filing season from April 15 to May 17 only applies to federal income tax returns. This deadline does not always coincide with the due dates for state income taxes.
Most states have followed the IRS and moved the deadline for income tax returns to May 17th. However, a handful of states still have different deadlines that affect millions of taxpayers.
Hawaii, Iowa, Maryland, and Oklahoma have state income tax deadlines that differ from the May 17 federal filing date. And the deadline in Arizona could change soon.
Hawaii taxpayers have less time to prepare and file their state tax returns – the state deadline is April 30th. In 2019, there were 1.1 million taxpayers in Hawaii, according to IRS data.
Others do not have to file their state taxes until the federal deadline has expired. Maryland’s state tax day is July 15 and Oklahoma is June 15. That’s good news for Maryland’s nearly 5 million taxpayers and Oklahoma’s nearly 3 million, according to 2019 IRS data.
Iowa’s nearly 2.5 million taxpayers will also be given more time. On Monday, the Iowa Department of the Treasury extended the state filing period to June 1. Idaho also updated its tax day to meet the May 17 federal deadline.
And other states can still postpone their filing dates. The state income tax deadline is currently under review in Arizona, where the Arizona Treasury Department is considering a bill that will be in line with the federal May 17th due date.
Some taxpayers in some other states have even more time to file both state and state income taxes. Those affected by severe winter storms in Texas, Oklahoma, and Louisiana have until June 15 to file their taxes, according to the Federal Emergency Management’s disaster statements agency.
What deadlines mean for taxpayers in these states
Taxpayers living in states with filing deadlines before Federal Tax Day may not be able to take advantage of federal extension, said Ryan Losi, CPA at Piascik in Richmond, Virginia.
“Many states, their starting point is the federal AGI,” Losi said, referring to the adjusted gross income that was calculated on an IRS Form 1040 added.
“To do the state [return] You have to make your covenant [return] anyway, “said Losi.
Of course, states with earlier filing dates could still move their deadlines to adjust or come after federal tax day on May 17th.
Still, taxpayers should take these different deadlines into account and work to prepare their tax returns sooner rather than later. Aside from misaligned tax return data in some states, the IRS extension did not apply to quarterly estimated tax payments typically made by self-employed people, interest, dividends, alimony, or rental income. The first quarterly payment is due on April 15th.
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There is also uncertainty as to whether the May 17 deadline will also apply to contributions to the individual retirement account or the health savings account for 2020. Last year, when the tax return season was also extended due to the Covid-19 pandemic, almost all deadlines were postponed to the same day – July 15, 2020.
However, so far, the IRS has not provided guidance on whether taxpayers will have more time to contribute to HSAs or IRAs, meaning some may want to make those contributions before April 15th.
“I would reasonably expect all of these things – HSAs, IRAs, amended tax returns from 2017 that would have an April 15th deadline – all of these things eventually to be pushed back to May 17th,” said Adam Markowitz, a registered agent with Howard Markowitz PA CPA in Leesburg, Florida. “I don’t know what that will look like.”
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