2019 Taxes Are Finally Due this Week: Here's What You Need to Know About the Extended Deadline

After being extended for months due to COVID-19, federal taxes for 2019 are finally due this week, on July 15th. Most state taxes are also due this week. Despite the ongoing crisis, the IRS has made it clear they are not considering a further extension of the filing deadline. So if you haven't filed yet, you need to do so this week. What do you need to know about this odd tax season? Let’s dive in.

You Can Ask for an Extension, but Whatever You Owe is Still Due Now

As usual, you can ask for an extension to file your full return until October 15th. However, to do so you need to estimate your tax liability, and any taxes you owe are still due on July 15th. The extension just gives you extra time to prepare your full return. You can fill out the form to request an extension here.

If you cannot pay your full taxes right now, you can apply for a payment plan, delay in collection or offer in compromise (settling your taxes for less than the full amount) from the IRS here.

File Online, the IRS is Backed Up With Paper Returns

If you haven’t filed yet and plan on filing your full return this week, you’ll want to do so online. The IRS is dealing with a massive backup of paper returns, since employees were working from home for months and the agency was bogged down with processing stimulus payments.

The backlog of paper returns is estimated to be over 4.7 million. The IRS has requested that remaining filers utilize online filing in order to guarantee receiving your refund in a reasonable time frame; you can select direct deposit for your refund to further speed up the process. You can file your taxes online for free here or utilize platforms like TurboTax.

You Might Get a Bigger Return This Year

Normally, the IRS is given a 45-day grace period to send out refunds before they need to pay interest on them. But this year, partially due to the extended deadline, the IRS will pay interest on all refunds for taxpayers who file by July 15th—no matter when they file or when they receive their refund. Interest will be paid from April 15th onward, and the interest rate for all filers who receive their refund between now and September 30th will be 3%. That’s higher interest than is accrued by almost any savings account! You can track your refund status with the IRS here.

You Still Have Time to Deposit to An IRA

This year, all deposits to a traditional IRA up until July 15th are either fully or partially deductible from your 2019 taxes, depending on your income and whether you have a spouse that is covered by a workplace retirement account. Those under 50 can save up to $6000 to deduct per year, and those over are permitted to save up to $7000. If you haven’t hit your limit for this year yet, you still have a couple of days to deposit.

Coronavirus has brought changes to every facet of our lives, including tax season. But in spite of the pandemic, taxes still have to be filed, and the deadline is coming up fast. If you haven’t filed yet for 2019, make sure you do so (or request an extension) this week, and take advantage of any deductions you can, including deposits to an IRA account.

Thanks for staying informed; we are committed to providing our users as much information as we can as they navigate this pandemic.