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Your 2019 Tax Questions Answered

In response to coronavirus, the Treasury and IRS have announced several changes to the tax filing season, including an extension of the federal tax filing deadline to July 15, 2020. Taxpayers getting a refund are encouraged to file their taxes now to get their money.

We know that you probably have questions about how Coronavirus (COVID-19) relief and the changes to the tax deadline impact your taxes — don’t worry, we’ve rounded up some of the top tax questions below to help get you the answers you need.

When is the federal tax deadline?

The federal tax filing deadline has been extended to July 15, 2020. As the IRS expects to continue to process refunds as normal, taxpayers who are getting a refund are encouraged to file now to get their money.

Will my refund be delayed?

No, the IRS expects to continue to process refunds as normal and still plans to issue nine out of 10 tax refunds within 21 days or less from acceptance with e-file and direct deposit — the quickest way to get your refund.

Do I need to do anything to be eligible for the July 15 deadline extension? Do I need to file a tax extension?

No, the July 15 federal tax deadline applies to all taxpayers. You don’t need to file any additional forms or call the IRS to qualify. All you have to do is file and pay any tax due, if you owe, by July 15.

Will I get a penalty for paying my taxes after April 15?

The extension of the federal tax filing deadline also applies to tax.

Deferment of federal tax payments means that if you owe money on your federal taxes, you will get more time to pay what you owe. Taxpayers that owe money can defer federal tax payments, interest free and penalty free until July 15. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers can defer tax year 2019 federal tax payments regardless of the amount owed. This deferment also applies to tax year 2020 estimated tax payments previously due on April 15, 2020.

Will my state taxes have a different tax deadline?

The Georgia Department of Revenue is automatically extending the 2019 income tax filing and payment deadline to July 15, 2020. You can get the latest on tax deadlines and guidance for additional states by clicking here.

What’s the deadline to make a contribution to my IRA?

The deadline for making contributions to your Individual Retirement Account (IRA) for 2019 has been extended to July 15, 2020. You can contribute a maximum of $6,000 to an IRA for 2019, plus an extra $1,000 if you are 50 or older.

If you are self-employed, you can contribute to a Simplified Employee Pension (SEP) IRA as much as the lesser of 25% of your net earnings or up to $56,000 for 2019 and your contributions may be tax-deductible as a business expense. You can contribute to your SEP IRA until the October 15 extended deadline.

Does this relief mean I have more time to contribute funds to my HSA or Archer MSA for 2019?

Yes. Contributions may be made to your HSA or Archer MSA any time during the year as long as it’s by the due date for filing your tax return. Given the due date for filing federal income tax returns is now July 15, 2020, you have until then to make contributions to your HSA or Archer MSA.

The Coronavirus Stimulus Package

On Friday, March 27, 2020, the President signed the Coronavirus Aid, Relief and Economic Security Act (CARES) — a $2 trillion stimulus package that will provide financial relief to individuals, families and businesses — into law. The 2020 coronavirus stimulus package will deliver relief through a range of measures, including an advanced tax rebate for taxpayers.

Eligible taxpayers will receive stimulus checks of up to $1,200 for individuals, $2,400 for joint taxpayers and an additional $500 for each qualifying child.

COVID-19 stimulus payments will be based on information from your most recent tax filings, either 2019 or 2018, if you have not yet filed this season. However, the amount paid to you now will be reconciled on next year’s tax return based on your current 2020 situation.

The CARES Act also allows the government to leverage the direct deposit information in your tax year 2019 or 2018 tax return to deposit these stimulus funds electronically into your account.

How can I adhere to shelter in place policies and still get the help I need from a tax expert?

Whether you have a simple tax situation, a more involved tax situation with investments or your own self-employed business, you can access TurboTax® Live CPAs and Enrolled Agents on-demand, safely and from the comfort of your own home, to get personalized advice for your unique situation. You can connect live via one-way video to our team of TurboTax Live CPAs and Enrolled Agents (EAs), with an average 15 years of experience to get your questions answered. TurboTax Live CPAs and Enrolled Agents are available in English and Spanish, year-round and can review, sign and file your return for extra reassurance. Our TurboTax Live CPAs and Enrolled Agents are up-to-date on tax laws and are available for unlimited advice and answers throughout your tax preparation process. Also, TurboTax Live doesn’t close its doors on July 15th – customers can get year-round advice.

Has the 2020 Quarterly estimated tax deadline been moved?

While the notice postpones the deadline for first quarter 2020 estimated income tax payments from April 15 to July 15, 2020, second quarter 2020 estimated tax payments are still due on June 15, 2020.

One little-known tip for Self-Employed taxpayers is that you can annualize your income. By annualizing, you can recognize your income in the specific quarters you receive it and annualize at the time of filing, so you don’t get penalties if your self-employment income was not earned evenly over quarters.

I already scheduled my tax payment for April 15th, can I move it to July 15?

Yes, you can cancel your payment and reschedule it for July 15.

What should I do if I’m unable to file my 2019 tax return by the July 15 deadline?

If you can’t file by the July 15 deadline, you can request an automatic extension to file your federal income tax return until October 15. Reminder, a tax extension does not extend the deadline to pay any taxes that you may owe to the IRS. Any tax payments will still be due on July 1

Get your maximum tax refund with TurboTax today

Georgia United has teamed up with TurboTax to help you save money this tax season. TurboTax asks you simple questions and gives you the tax deductions and credits you're eligible for based on your answers. If you have questions, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent with an average 15 years of experience to get your tax questions answered. As a Georgia United member, you can save up to $15 on TurboTax federal products today.

Source: The TurboTax Blog. (2020, March 27). Is the Tax Deadline Delayed? What to Know About Coronavirus (COVID-19) and Your Taxes

Content provided for informational purposes only and should not be interpreted as legal advice on any subject matter.