IRS Announces Tax Filing Deadline Extensions and Unemployment Benefit Exclusion
On March 17, 2021, the U.S Treasury Department and Internal Revenue Service (IRS) announced that the filing deadline for individual federal income tax returns for the 2020 taxation year is extended from April 15th to May 17, 2021. Please note that such deadline does not apply to corporate tax filers with a calendar year-end.
The IRS News Release also stated that taxpayers can postpone federal income tax payments for the 2020 taxation year without penalties or interest. Payments that would be due on April 15, 2021 are now due May 17, 2021. According to the release, “This relief does not apply to estimated tax payments that are due on April 15, 2021.
In addition to this extension, the American Rescue Plan, which was signed into law by President Biden on March 11th, included a new exclusion for Unemployment Compensation as part of the latest Federal COVID-19 Relief Legislative Package. Per the provision, individual taxpayers with a modified adjusted gross income (AGI) less than USD $150K can exclude up to $10,200 in unemployment compensation received in 2020.
We expect more guidance on this front, particularly for those who filed their taxes prior to March 11th. One can only hope that the Canada Revenue Agency will soon follow suit. We will keep you posted!