Several weeks ago, the IRS extended our personal income tax filing deadline from April 15 to May 17, 2021. Because a few other deadlines are synonymous with the date to file personal taxes, we have been waiting for confirmation that these additional deadlines would be extended, as well.
As of yesterday, we now have confirmation that IRA and other savings plan contribution deadlines have also been extended. Below is what you need to know.
Personal income tax filing deadline is extended, with exclusions.
Most individuals now have until May 17, 2021 to file your (and pay, if you owe) personal income tax return.
Please note, this provision is not all-inclusive. For example, if you are a freelancer, a sole proprietor, or an S-corp making quarterly, estimated income tax payments, that payment for your 2021 installment is still due on April 15. These estimated tax payments include income not typically subject to withholding (self-employment income, alimony, capital gains, etc.). Because calculating this payment depends on your 2020 return results, you face penalties if you delay preparing and filing your return past April 15. Please consult with your tax professional for proper guidance if you have not already prepared and/or filed your 2020 return.
The date to make contributions to IRAs, HSAs, and ESAs is extended.
The date to make contributions to traditional and Roth IRAs and other savings plans has been extended from April 15 to May 17, 2021.
This includes Coverdell education savings accounts, health savings accounts and Archer medical savings accounts. Provided you make a contribution before the new May 17 deadline, you can earmark it to count towards your 2020 income tax liability.
Deadline to claim a refund on your 2017 federal income tax return is extended.
If you are due a refund on your federal tax return, the IRS gives you 3 years from the tax filing deadline date to claim that refund. If you don’t claim funds owed to you within the 3-year time frame, Uncle Sam takes ownership of them.
If you are owed a refund on your 2017 taxes that were due to be filed by April 15, 2018, you would have had to file for that refund by April 15, 2021 to receive it. But the IRS extended that deadline to May 17, 2021.
Advanta IRA is committed to providing the most up-to-date information to help our clients and others stay abreast of important changes that affect their self-directed IRAs and other savings plans. This article was written for informational purposes only. We do not provide tax, legal, or investing advice. Please contact your CPA or tax professional to determine how these changes affect you.