Changes to U.S. tax filings
Your quick guide to what’s different in 2021—and what’s stayed the same.
- May 17 is the new deadline for U.S. taxpayers to file their 2020 U.S. income tax returns and pay their U.S. income taxes due.
- Individuals affected by the early February storms in Texas, Oklahoma and Louisiana have until June 15 to file their U.S. income tax returns and pay their income taxes due.
- This information is current as of March 30, 2021. The IRS may provide additional guidance in the coming days, and this article will be updated as new information is released. Be sure to speak with your tax advisors before taking any action.
Relief for individual U.S. taxpayers: the IRS will allow individuals (including those who pay self-employment tax) to defer filing 2020 U.S. income tax returns and paying 2020 U.S. income taxes due until May 17 without interest or penalties. Individual taxpayers may go on extension until October 15, but interest and penalties for any underpayment of 2020 U.S. income tax liability will begin to accrue as of May 18. If you expect to receive a U.S. income tax refund, you should file as soon as possible, so that your refund can be issued; you will not receive a refund until your return is filed.
In addition, individuals can defer making 2020 contributions to IRAs, health savings accounts, medical savings accounts and Coverdell accounts until May 17.
Relief for victims of early February winter storms: Individuals in Texas, Oklahoma and Louisiana affected by the early February storms have until June 15 to file their U.S. income tax returns, pay U.S. income taxes due, and make April 2021 estimated quarterly tax payments. In addition, they have until June 15, not May 17, to make 2020 IRA contributions.
What stayed the same?
2021 estimated quarterly tax payments: Except for those affected by the February winter storms as described earlier, April payments remain due on April 15, 2021; they may not be deferred until May 17.
Tax deadline for non-individual taxpayers: The U.S. income tax filing and payment deadline deferrals do not apply to trusts, estates, partnerships, corporations and other non-individual taxpayers.
State income tax return filings and tax payments: State and municipal taxes are not automatically affected by the IRS’ deadline changes. Some jurisdictions, such as New York and New Jersey, have already announced that they would generally extend filing and payment deadlines to conform to the IRS changes. In all cases, however, you should check with your state or local governments, or your tax advisor.
SEP-IRA setup: The IRS has not yet explained whether the U.S. income tax filing and tax payment deadline extensions also apply to the deadline to set up a SEP-IRA for 2020. You should not delay setting one up past the normal deadline without first speaking with your tax advisor.
We’re here to help
We expect the IRS to issue additional guidance on this tax deferral announcement and to address a number of open questions, so be sure to check in with your tax advisor to understand how this relief applies to you. In partnership with you and your tax advisors, your J.P. Morgan team can help you identify the right solution for your long-term goals.
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