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Scaled Down Fireworks and Taxes Make For A Strange July Combination

Scaled Down Fireworks and Taxes Make For A Strange July Combination

The Treasury Department and Internal Revenue Service said enough is enough to us procrastinators this week by announcing they’d stick with the tax filing deadline of July 15.

Well, sort of. The agencies are still encouraging people to file for an automatic extension to Oct. 15, if they cannot meet the July 15 deadline.

Earlier this year, the IRS postponed the tax-filing deadline from April 15 because of disruptions caused by the coronavirus pandemic. Most states, including Ohio, West Virginia and Pennsylvania, extended their tax filing deadlines to July 15 as well. As such, the seemingly never-ending tax season is coming to a head.

Those expecting to have to pay 2019 taxes should check their payment options.

“The IRS understands that those affected by the coronavirus may not be able to pay their balances in full by July 15, but we have many payment options to help taxpayers,” said the IRS Commissioner. “These easy-to-use payment options are available on IRS.gov, and most can be done automatically without reaching out to an IRS representative.”

The due date for 2019 individual income tax returns, along with that year’s tax payment, are just two of the items pushed into July. For example, people who pay quarterly estimated taxes – for instance, independent contractors – were also given until July 15 to cover amounts due for the first and second quarters of 2020. Ordinarily, those deadlines would have been April 15 and June 15, respectively.

Just as filers have more time to turn in last year’s tax returns, they also have extra time to top off their IRAs. Savers have until July 15 to save up to $6,000 in their individual retirement account ($7,000 if you’re 50 and over) and have the contribution count for 2019.

If you were in a high-deductible health plan, you also have extra time (until July 15) to stash more money into a health savings account on a pretax basis.

So, for those of us who waited, enjoy the grand finale at a safe distance on Saturday, July 4, and then get busy.

Happy filing and best of luck!

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