COVID-19 Impact: US extends Income Tax filing Due Dates

Income Tax filing - Taxscan

As the US witnessing the worst time with the COVID-19 outbreak, the Government has extended the due date for filing income tax returns to July 15. The decision would be a great relief for the citizen as the deadline was supposed to end on 15th April.

Nicole Kaeding, the vice president of policy promotion and an economist at the National Taxpayers Union Foundation, pointed out on Twitter that every state has now extended its tax filing and/or tax payment due date beyond the original April deadline.

Last month, Treasury Secretary Steven Mnuchin announced that the federal tax deadline would be postponed 90 days, to July 15. In addition, the IRS will waive all penalties and interest on federal tax payments of up to $1 million for individuals and $10 million for businesses during this period. Following Some States

After the federal-tax deadline was extended, some states quickly followed suit.

On Wednesday, New Jersey was the final state to postpone its due date, announcing a new July 15 deadline. In total, 41 states tax income, either at a flat rate – meaning everyone, regardless of how much they earn, pays the same percentage of their income to the government – or a progressive rate, which means the tax rate is determined by income. According to a list compiled by the American Institute of Certified Public Accountants, most states have pushed back both the individual income tax payment and tax filing due dates to either July or June.

The new deadline for individual income tax and corporate income tax in Mississippi is May 15. Seven states including Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming have no individual income tax. New Hampshire and Tennessee don’t have a state income tax either, but they do tax interest and dividends. Tennessee’s tax due date has been extended to July 15.