Tax Deadline - May 17, 2021
The U.S. Department of the Treasury and Internal Revenue Service announced on March 17, 2021, that the federal income tax filing due date for individuals will be automatically extended from April 15 to May 17, 2021. This extension applies to Individual Income Tax Returns only.
• No extension of time to file and pay your first quarter 2021 estimated tax was approved. The due date remains April 15, 2021.
• Pennsylvania will be following the same dates as the federal: tax returns are due May 17 and first quarter 2021 estimates are still due on April 15, 2021.
• Local Tax Returns are to be filed by April 15, 2021. Currently, the Governor’s office has not extended the filing date. Check the website of your tax collector (Berkheimer Associates, Keystone Collections Group, etc.) for guidance on their requirements for filing 2020 tax returns and paying 2021 estimated tax payments.
We are encouraging all of our clients to have their tax information to us ASAP. Please contact your accountant with any questions.
Unemployment Benefits – IRS to Start Refunds in May
The IRS has announced that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. For those taxpayers who already have filed and figured their tax based on the full amount of unemployment compensation, the IRS will determine the correct taxable amount of unemployment compensation and tax. Any resulting overpayment of tax will be either refunded or applied to other outstanding taxes owed.
For those who have filed, the IRS will do these recalculations in two phases, starting with those taxpayers eligible for the up to $10,200 exclusion. The IRS will then adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
We would like to thank all of our clients and friends for their support during tax season. We appreciate your business and we thank you for recommending us to your family and friends. We also want to thank all of our employees for their hard work and dedication by rewarding them with time off to reacquaint themselves with their family and friends. Even though individual tax returns do not have to be filed until May 17, 2021, our office will still be closed Friday, April 16 and will reopen Monday, April 19 with our normal business hours.