It comes around every year. No, it’s not the holiday season. It’s tax season, a time that might not invoke a lot of cheer but it’s still very important to your financial health. Check out this list of important dates for the 2020 tax year and mark your calendars.
Individual Income Tax Returns
You probably know the date by heart: April 15. That’s typically the date when your individual tax return is due, but not this year. As Kiplinger notes, the IRS has extended the date to May 17, 2021.
Last year, the IRS pushed the deadline to June 15 because of the coronavirus pandemic. File your individual tax return for the 2020 year before May 17 or request an extension. If the IRS approves your request for a filing extension, your deadline would shift to October 15, 2021.
State-Specific Tax Extensions
For the 2020 tax year, taxpayers in Oklahoma, Texas, and Louisiana now have until June 15, 2021, to file various personal and business tax returns. This extension affects all 77 counties in Oklahoma, all 254 counties in Texas, and all 64 parishes in Louisiana. The IRS extended the deadline as a result of winter storms that devastated both states in February 2021.
This extension covers individual and business returns for 2020 that would have been due April 15, 2021, and various 2020 business returns that would have been due March 15. Furthermore, the extension delays until June 15, 2021, the payment deadline for estimated taxes that would have been due April 15, 2021.
Estimated Tax Payments (IRS Form 1040)
If you’re required to make estimated tax payments (you’re self-employed, for instance), here are the deadlines you need to know in 2021:
- Income earned January 1 to March 31, 2021—deadline is April 15, 2021.
- Income earned April 1 to May 31, 2021—deadline is June 15, 2021.
- Income earned June 1 to August 31—deadline is September 15, 2021.
- Income earned September 1 to December 31, 2021—deadline is January 15, 2022.
The final deadline for making estimated tax payments for the 2020 tax year was January 15, 2021.
If you don’t pay enough estimated tax by the due date for each income period, the IRS may charge a penalty—even if you’re supposed to receive a refund.
Partnerships and S Corporation Tax Returns
If your business is considered a partnership or an S corporation, you must submit your tax return by March 15 or on the 15th day of the third month after the end of your organization’s tax year. A partnership must fill out Form 1065, which helps produce a Schedule K-1 earnings statement for each partner. S corporations must complete Form 1120S to generate a Schedule K-1.
A partnership or S corporation can ask the IRS for a six-month extension by turning in Form 7004 along with a deposit equaling the amount of estimated tax that’s owed. If an extension is granted, the annual return would be due September 15, 2021, as would any interest and penalties.
C Corporation Tax Returns (IRS Form 1120)
C corporations are the most common legal structures for corporations in the U.S.
As with individual tax returns, C corporation tax returns are due April 15, 2021, for income earned in 2020. A C corporation can request a six-month filing extension by submitting Form 7004 and depositing the amount of estimated tax that’s owed. If the IRS approves the extension, October 15, 2021, would become the new filing deadline. At that point, any penalties, interest, and remaining tax must be paid.
- $6,000 if you’re under age 50
- $7,000 if you’re 50 or older
- your taxable compensation for the year if the compensation was less than either $6,000 or $7,000, depending on your age
The IRA contribution limit for people under 50 climbed to $6,000 in 2019, from $5,500 in 2018. The over-50 limit went from $6,500 to $7,000.
Staying on Top of Tax Changes
To keep up with tax changes this year and beyond, visit the IRS website. Other tax resources to check out include the TurboTax blog, Forbes Advisor, Kiplinger.com, the Tax Policy Center’s TaxVox blog, and the Tax Foundation’s blog.
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