It feels like the world has been turned upside down recently. Our plans have been cancelled or delayed for the foreseeable future—even our taxes!
The Federal government is trying to take some pressure off Americans who are running short on cash during the coronavirus crisis, so they’ve pushed back the tax deadline from April 15 to July 15. I want to answer some important questions about the new deadline.
Does this extension apply to everyone?
Yes. The government has delayed income taxes for individuals, small businesses, trusts and estates, and corporations.
Are state income taxes also due on July 15?
As of early April, most of the 42 states that collect income taxes have also extended the deadline to July 15—but there are a few exceptions. Check your state’s guidelines to find out more.
What about quarterly taxes?
If you pay quarterly taxes on self-employment income, this extension applies only to the first quarter (January 1 to March 31). The other deadlines for quarterly taxes remain the same. In fact, second-quarter payments are due June 15—a month before first-quarter payments!
Should I wait to file my taxes?
No. Unless you’re in a full-blown crisis situation, you should go ahead and file your taxes now. If you’re expecting a refund, you can use the extra money to take care of basic needs, or you can sweep it into your emergency fund. If you’re expecting to owe taxes, then it’s best to find out how much as soon as possible so you can budget and save for the payment.
What if I still can’t pay my taxes by July 15?
If you’re still in a tight spot by July 15, the first thing to do is pay as much as you can by the deadline—even if it’s a fraction of what you owe. Then, contact the IRS directly to let them know about your situation. They should work with you to set up a payment plan. But keep in mind that you need to attack that debt with every extra dollar you have until it’s gone.
Who can I turn to for more help?
This is a highly unusual tax season, so the best thing you can do it get a professional on your team. I want you to work with the very best—someone with the heart of a teacher. So connect with a tax pro in your area!
Bottom line: Whether you face them now or in three months, your taxes aren’t going anywhere. Don’t put them off. Tackle them head on so you remain in control and know where you stand with your money!
About Chris Hogan
Chris Hogan is a #1 national best-selling author, dynamic speaker and host of The Chris Hogan Show. For more than a decade, Hogan has served at Ramsey Solutions, equipping and challenging people to take control of their money and reach their financial goals. His second book, Everyday Millionaire: How Ordinary People Built Extraordinary Wealth — And How You Can, Too, was released in January.