U.S. Personal Income Tax Filing and Payment Deadlines Extended Until July 15
The deadline for filing federal personal income tax returns and making payments has been extended from April 15 to July 15. Payments of first quarter estimated income taxes are also deferred to July 15, 2020. No taxpayer will be required to take a 2020 IRA Required Minimum Distribution.
What you should know:
1. The filing extension applies to all individuals, trusts, pass-throughs and C corporations.
2. The payment extension applies to all individuals, trusts, LLCs, pass-throughs and C Corporations. There are no limits to the dollar amount of extended payments.
3. The payment extension applies also to 1st quarter estimated tax payments. The filing and payment date for 2nd quarter estimated tax payments has not yet been changed and is June 15, 2020.
4. The extended dates apply only to income tax returns. Other returns and information filings must be made timely. Gift Tax and Generation-Skipping Transfer Tax returns are due on April 15 and require extensions if you will not be filing by that date.
5. Most states are following some or all of the federal changes.
6. IRA Required Minimum Distributions are suspended for 2020. Taxpayers younger than age 59 1/2 may take a penalty-free hardship withdrawal from an IRA or 401(k) up to $100,000.
What you should do:
- Many individuals with complicated returns need an extension to October 15 every year. If you fall into this group, file your extension request by April 15. Later extension requests will likely be granted but it is better to be safe than sorry on this one.
- Individuals are permitted to fund their 2019 IRA contribution up until July 15, 2020. Despite the later deadline, consider funding earlier than required so as to take advantage of investing the IRA contribution in securities while asset values are depressed.
- If you are expecting a refund, file your return as soon as practicable.
- File your state return and make your state payments (including estimated tax payments) on time unless you know for certain your state has extended the deadlines.
Glenmede prepares thousands of trust tax returns and many hundreds of personal income tax returns for our clients each year. Please be assured that your Tax Advisors continue to work diligently through this crisis, communicating with our clients and preparing returns. All are working efficiently from home; a skeleton staff sends and receives mail each day. Please do not hesitate to reach out to your Glenmede Relationship Manager or Tax Advisor directly by telephone or e-mail. Your Glenmede tax information can always be retrieved by you directly from GlenmedeConnect.
This information is current as of March 25, 2020.
This material is intended to be a review of issues or topics of possible interest to Glenmede Trust Company clients and friends and it is not personalized investment, estate planning, tax or legal advice. Advice is provided in light of a client’s applicable circumstances and may differ substantially from this presentation. This material may contain Glenmede’s opinions, which may change without notice after date of publication. Information gathered from third-party sources is assumed reliable but is not guaranteed. This publication may not be used as legal or tax advice.