- Due date / deadline for filing tax returns is extended from April 15 to July 15, 2020 – no need to file for an extension. Extension will be granted until October 15, 2020, however an extension request must be filed
- Due date for contributing to an IRA is extended from April 15 to July 15, 2020
- Due date for first estimated 2020 tax payments, if any, is extended to July 15, 2020
- Due date for payment of 2019 balances due, if any, is extended to July 15, 2020
- Refunds are unaffected and will be processed normally – usually withing 4 weeks of filing your returns.
- New York has adopted the federal extension to July 15, 2020.
- New Jersey has adopted the federal extension to July 15, 2020.
Many clients experienced significant increases in their brokerage investment accounts last year and as a result, some experienced significant Tax balances due. In the meantime account values have dropped due to the pandemic.
If you have a large tax balance due, rather than pay the tax all at once, consider setting up a monthly installment plan to pay the tax. This will allow you to keep your money working for you in the while you pay the tax over time. Hopefully, you will recapture gains as the market comes back.