HONOLULU(KHON2) — The Internal Revenue Service (IRS) is giving Americans an extra month to file their federal taxes.
The Treasury Department and IRS announced they are pushing back the 2020 Federal tax deadline for individuals to Monday, May 17, 2021.
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The extension was put in place to help those impacted by the pandemic but it only applies to federal taxes. Hawaii state taxes still need to be filed in April.
“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,” said IRS Commissioner Chuck Rettig.
Unemployment is a huge factor for many filing for 2020.
That money is taxable, which is hard for many who are still struggling financially.
RP Tax Service owner Robert Purcell said, he thinks that is why Congress agreed to forgive a portion of unemployment in the $1.9 trillion American Rescue Plan that was recently signed.
“I think that’s part of the reason this new bill has been passed and that the first $10,200 is non taxable,” Purcell explained. “So that’s part of the situation we’re having now is that we’re still waiting on IRS guidelines as to how to proceed with that.”
So what happens if someone received unemployment and already their return?
IRS Spokesman David Tucker said, they should not amend the return just yet.
“We encourage people not to file an amended return at this point and wait for that additional advice and guidance to come out,” Tucker said.
Purcell said, those who did not collect unemployment and filed their return should get a refund soon.
“Three to four weeks is the standard,” Purcell said. “If they wait until the deadline of May 17th, they could probably expect a refund in June going into July.”
Residents still need to file their N-11 Hawaii state form by Tuesday, April 20, 2021.
“Normally states will abide by federal standing,” Purcell said. “So if federal has moved to May 17th, states should follow as well. I don’t think the state of Hawaii has announced anything yet, but I think they will follow.”
He said, residents can file an extension with the State if the Hawaii tax deadline is not moved. Otherwise, they will need to meet the April 20 deadline.
Anyone that needs additional time to file their federal income tax can request a filing extension until Friday, Oct. 15, 2021, by filing form 4868 through their tax professional, tax software or using the Free File link of IRS.gov. Any tax due must be paid by May 17 to avoid any interest or penalties.