Tax Deadline Extension
The spread of novel coronavirus, or COVID-19, has resulted in the closing of many of United Way’s Volunteer Income Tax Assistance sites across the region. Today the IRS announced that it is extending the federal tax deadline by 90 days, making the due date file a tax return July 15, 2020. Earlier this week the IRS extended the deadline to pay federal tax to July 15, 2020.
What this means for your federal taxes:
- The deadline to file federal taxes is now July 15, 2020.
- Those who owe on their federal taxes will have until July 15, 2020 to pay.
- Eligibility includes anyone who owes up to $1 million.
- This applies to all individual returns including self-employed individuals.
- This also applies to any entity that is not a C-Corporation, such as trusts or estates.
- Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief. It will be automatically provided to all qualifying taxpayers.
- Filers who do not owe money to the IRS and are due a refund are not penalized if they file after the deadline of July 15, 2020.
- Taxpayers have a three year window of opportunity to claim a refund. If taxpayers do not file a return within three years, this money becomes property of the U.S. Treasury. The deadline to file a 2016 tax return has been extended. Taxpayers are required to properly address, mail and ensure the return is postmarked by the July 15, 2020 deadline.
What this means for your Virginia state taxes:
- The deadline to file state taxes for the state of Virginia remains May 1, 2020.
- Those who owe on their state taxes will have until June 1, 2020 to make a full payment of the amount they owe.
- Any income tax payments due between April 1 and June 1 can be paid as late as June 1 without penalty.
- All households automatically get an extension until November 1 to file a state tax return.
- This year all late penalties will be waived, provided you pay 90% of what you owe.
- Virginia law prevents the Department of Taxation from waiving interest. The governor is proposing a change to this law when the General Assembly returns on April 22, to waive interest until June 1.
- For more information from the state of Virginia, go here.
While many of United Way’s Volunteer Income Tax Assistance sites have been shut down due to COVID-19, we are committed to offering free tax preparation services through our VITA program in a way that accessible, safe and in accordance with public health recommendations. We will share more information as soon as it is available.
Meanwhile, we also offer direct access to multiple free software programs that allow individuals and families to file their own taxes online. Visit yourunitedway.org/tax/online-tax-prep for more information.