Tax Day: The July 15th Deadline – LNK Tax Group
The filing deadline for 2019 taxes is right around the corner, so it is time to start thinking about taxes. If you haven’t prepared your 2019 taxes yet, now is the time to get started. The IRS extended the 2019 tax deadline to July 15 as a result of the COVID-19 pandemic and now the three-month extension is almost up, and the deadline right around the corner. However, the IRS extension isn’t limited to 2019 filings. In fact, the extensions affected several parts of the 2020 tax calendar that you might not know about. This post explains everything you need to know about the upcoming tax deadlines, so you can prepare for tax day 2020 while there’s still time.
What’s Due on July 15?
Tax day usually falls on April 15 but the IRS postponed tax day for 2019 filings for three months as a result of COVID-19. Tax day 2020 falls on July 15, and the date is approaching quickly. Here’s what you should expect:
2019 Tax Returns and Payments
The IRS gave taxpayers an extra three months to file and pay their 2019 taxes. You must file your 2019 tax return before July 15, 2020. If you owe taxes, you must submit your payment before July 15 as well. If not, the IRS could penalize you for late payment.
Q1 and Q2 Estimated Tax Payments for 2020
In addition to your federal income tax return, estimated tax payments for both the first quarter and second quarter have been extended until July 15. Currently, the third and fourth quarter deadlines remain the same.
States determine their own tax deadlines, so you have to check to see your state tax authority’s web site to see when you have to pay. The IRS encouraged state governments to extend their deadlines too, but some states didn’t take the advice. Check with your state for the latest information on state tax deadlines.
How to Prepare for Tax Day 2020
With tax day comes a lot of stress for many taxpayers. Taxes can be confusing and require a lot of attention to detail, you don’t want to miss any deductions and you want to make sure your taxes are prepared accurately and on time. Here are some tips to help you prepare.
Organize Your Documents
Start getting your receipts and tax documents in order now. Organization make filing your taxes much easier. Gather all your receipts, 1099 forms, and other important tax documents ahead of time so you’re prepared to file when the time comes.
Set Aside Funds for Tax Payments
As a general rule of thumb, it is a good idea to set aside 30% of your income for tax payments. This ensures you will have enough money to pay your tax bill at the end of the year.
File Your 2019 Tax Return
You must file your 2019 return before July 15. Filing your taxes electronically is the most convenient option, but you can also mail them in. If you owe taxes, you can submit payment online through the IRS website or mail a check with the return.
Don’t stress yourself out over taxes. The most important thing is to file accurately. Don’t sell yourself short. Make sure you are claiming every available deduction and taking advantage of appropriate tax credits.
Tax Day 2020: Last Chance for Retirement Contributions
The IRS also extended its deadline for contributions to tax deferred retirement accounts. This year, you have until July 15th to make tax-deductible contributions to your IRA. You can deduct up to $6,000 for qualified contributions, so it’s a great last-minute tax deduction. If your tax bill is high, you should consider contributing to your IRA before July 15. It’s a great way to lower your tax liability, and it’ll help build your nest egg too.
Questions About The Upcoming Deadlines?
Tax day 2020 is almost here, but there’s no need to panic. If you need help hitting the deadline, you should talk to LNK Tax Group as we pride ourselves on hitting deadlines. Book a free 20 minute consultation with LNK Tax Group and let us help you file on time.