The CARES Act and Your Taxes
As you most likely have heard, the Coronavirus Aid, Relief, and Economic Security Act (commonly known as the CARES Act) was signed into law on March 27, 2020. The CARES Act will provide some necessary relief to America’s families and businesses as we all manage the COVID-19 health crisis and economic turmoil. In addition, the CARES Act has given extended time for the filing and payment of income taxes and has changed some other important dates:
Individual Tax Returns Due for Tax Year 2019
The due date for filing tax returns and making tax payments is extended from April 15 to July 15.
Individual Tax Return Extension Form Due for Tax Year 2019
In 2020, you have some extra time to file for an extension. File your request for a tax extension by July 15 to push your tax deadline back to October 15, 2020.
1st Quarter 2020 Estimated Tax Payment Due
You'll get a three-month extension to make your first 2020 estimated tax payment. If you are self-employed or have other first-quarter income that requires you to pay quarterly estimated taxes, you have until the July 15, 2020 tax deadline.
Last Day to make a 2019 IRA Contribution
Your 2019 IRA contribution isn't due for an additional three months in 2020. If you haven't already funded your retirement account for 2019, do so by July 15, 2020. That's the deadline for a contribution to a traditional IRA, deductible or not, and a Roth IRA. However, if you have a Keogh or SEP and you get a filing extension to October 15, 2020, you can wait until then to put 2019 money into those accounts. Please see above about the timing of filing for an extension.
2nd Quarter 2020 Estimated Tax Payment - NO EXTENSION, due June 15th, 2020.
In 2020, your 2nd quarter 2020 estimated tax payment is actually due before your 1st quarter payment due to the extension of the April 15, 2020 deadline above. If you are self-employed or have other second-quarter income that requires you to pay quarterly estimated taxes, make sure your payment is done by the June 15, 2020 tax deadline.
We recommend that you contact your tax advisor with any income tax related questions.