The IRS is moving the tax-filing deadline to May 17 from April 15.
Turns out the new Biden Covid Relief package has pushed the IRS over the edge to moving the tax due date for 2021. Tax day 2021 will now be May 17.
There are just enough changes to tax law in the new package that the IRS figures implementing the changes, publishing the updated tax forms and guidance, and then getting filed is going to be too tight for many taxpayers this year.
The new tax deadline 2021 on May 17 is basically a one-month extension from the standard April 15th deadline, except May 15 is on a Saturday, so the new tax deadline for 2021 is Monday, May 15, 2021.
Tax Deadline 2021
Of course, the IRS is spinning this as them helping taxpaying Americans. It helps the IRS too, but either way, many taxpayers will take it.
The new tax deadline for 2021 is forth both filing and paying federal income taxes, unlike a typical tax extension. As always, taxpayers can get a free, no-questions asked, extension to October 15 by filing Form 4688, but that only changes the date of filing. Taxpayers still owe taxes due on May 17. Form 4688 is now due by May 17th as well, so you get a bit longer to see if you want to file an extension.
Tax software like TurboTax is already being updated with the new tax provisions while the new guidance, forms, and instructions come from the IRS. Be sure if you are using TaxCut, TaxAct, H&R Block, Credit Karma Tax, or TaxSlayer that you let the software update before you get too far into your taxes.
What Tax Changes To Look For in 2021 From Covid Bill?
The change that will effect the most people in the new Covid relief law is making the first $10,200 of any unemployment income tax-free. Previously, that income would have counted as taxable income and led many taxpayers who thought they were getting a refund into paying instead.
When Are My State Taxes Due 2021?
The IRS doesn’t actually control when your states’ income taxes are due, so technically, this tax due date change does not affect any state’s tax deadline. However, many state’s updated their tax filing deadline in 2020 to match the federal income tax due date. This only makes sense, since many states rely on the federal income tax filing for at least part of their income taxes.
For example, the State of Colorado tax forms require specific numbers from your federal income tax forms in order to fill out your Colorado income taxes. Without the completed IRS Form 1040, you cannot complete you Colorado Form DR 0104.
As noted on the official Colorado Department of Revenue website for taxes, federal income tax changes enacted after December 31, 2020 are not automatically incorporated into Colorado’s state income taxes. So, unemployment benefits for 2020 are technically still taxable for the purposes of Colorado taxes. — The Governor and legislature will likely pass some sort of law to both not seem like jerks, and because it would likely cause lots of mistakes on Colorado tax filings.
California has already officially moved its payment and filing deadline to May 17th, 2021. Expect most states to follow suit.
2020 Tax-Filing Date Change
The IRS gave taxpayers until July 15, 2020 for filing last year’s taxes because of things shutting down for the first time due to Covid. Like this year, Covid relief contained several tax changes that needed implementing as well as giving tax filers and tax preparers more time.
Last year, the Colorado Department of Revenue enacted an emergency rule to move the Colorado state income taxes due date to July 15, 2020 to correspond with the change in the federal income tax filing date.
Expect a similar emergency rule to be enacted this year. Colorado income tax deadline officially moved to May 17 to match the federal income tax deadline.