Name: Federal and California income tax deadline delayed over COVID 'tough time'
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Federal and California income tax deadline delayed over COVID 'tough time'

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By | | Bay Area News GroupThe deadline for California taxpayers to file their 2020 personal income tax returns and pay their taxes to the federal and state governments has been extended to May 17 from April 15, after the U.S. Internal Revenue Service on Wednesday announced the delay and California followed suit.Both the IRS and the state tax agency said the deadline extension does not apply to estimated tax payments made quarterly by people whose income isn’t subject to income tax withholding. Those are still due April 15.The state and federal agencies both said they would provide more information in coming days.“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” IRS commissioner Chuck Rettig .“Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds.”Rettig added that electronic filing with direct deposit was the fastest way to obtain refunds, and could help some taxpayers receive any remaining federal stimulus payments they’re owed more quickly.The filing extension will give taxpayers breathing room to meet tax obligations in what is becoming one of the most complicated tax seasons in decades. The change comes after calls from accountants and leaders in Congress to delay the deadline as new legislation and pandemic-related work changes disrupt taxpayer plans.Among the changes this tax season are last-minute amendments to the $1.9 trillion stimulus bill signed into law earlier this month that give filers a new tax exemption on up to $10,200 of jobless benefits. The individual tax return, Form 1040, is also the mechanism for people to claim any missing $1,200 or $600 stimulus payments from last year.Aside from disruptions from the pandemic, changes in tax law will mean some filers will have to wait for updated forms, resubmit their returns, and some will need to consult a tax adviser on how to proceed if they’ve already filed.The IRS, which has the administrative authority to delay tax deadlines without Congress, also extended the filing season last year at the beginning of the COVID-19 pandemic.As of early March this year, the IRS has been behind last year’s metrics in the number of tax returns filed and processed and the number of refunds issued. The filing season, which began Feb. 12, started about two weeks later than usual, contributing to the slump.The tax extension also comes as the IRS has been handed another big task: processing a third round of direct payments to households, this time for $1,400 each. The IRS said it has so far sent about 90 million payments totaling $242 billion.Bloomberg contributed to this reportWe invite you to use our commenting platform to engage in insightful conversations about issues in our community. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable to us, and to disclose any information necessary to satisfy the law, regulation, or government request. We might permanently block any user who abuses these conditions.Get Morning Report and other email newslettersFollow UsMost PopularClose

By | | Bay Area News GroupThe deadline for California taxpayers to file their 2020 personal income tax returns and pay their taxes to the federal and state governments has been extended to May 17 from April 15, after the U.S. Internal Revenue Service on Wednesday announced the delay and California followed suit.Both the IRS and the state tax agency said the deadline extension does not apply to estimated tax payments made quarterly by people whose income isn’t subject to income tax withholding. Those are still due April 15.The state and federal agencies both said they would provide more...

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Ethan Baron

Latest Silicon Valley and San Francisco Bay Area news from reporters & columnists at The Mercury News.

Federal and California income tax deadline delayed over COVID 'tough time'

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