As COVID-19 began affecting the United States earlier this year, the Treasury Department moved the deadline for individual income tax returns to July 15th. The deadline applies to several other tax-related deadlines as well. Here's what you need to know as we approach July 15th.
The deadlines for the first and second estimated tax payments have both been extended to July 15th. Self-employed people now have the same deadline for their 2019 taxes and their first two estimated tax payments of the year. You can still get an extension, but need to pay now. If you still need more time to prepare your 2019 tax return, it's important to point out that just like with any other tax year, you can request an extension.
Another interesting provision of the extended tax deadline is that it also extends the ability to make 2019 contributions to individual retirement accounts (IRAs) and health savings accounts (HSAs). Contributions to traditional IRAs and HSAs are tax-deductible up to the IRS's annual maximum, and can be made until the tax deadline for each year. For the 2019 tax year, the traditional IRA contribution limit is $6,000 for eligible individuals under 50 ($7,000 for people 50 and older).
If you have questions, fears or concerns regarding the July 15th tax deadline, please, give us a call to schedule a no-cost, no-obligation meeting at 320.222.4236.