Bring Clarity to Your Finances™

Clarity Financial Planning Services is an advocate for your financial future who takes a holistic approach to your needs and goals.

Federal Income Tax Filing Deadline Extended; Check Your State Deadline

In the wake of all that has happened because of the worldwide Covid-19 pandemic the federal government has extended the filing deadline for federal income taxes to July 15. If you have not already filed your federal income tax return, you have until that date to file. However, each state did not automatically do the same (in fact, there are a few states that do not collect state income tax at all.) You will need to verify what the deadline is for your state. USA Today is one source that provided a list of what is expected for residents of each state (and the District of Columbia) with regards to state income taxes.

The Motley Fool offered “3 Reasons to File Your Tax Return Now — and 1 Big Reason to Wait.” For the most part it is better to file your taxes as soon as possible so you do not have the stress of it hanging over your head for the entire tax season. If you know that you need your refund, you shouldn’t wait. You may also need to have your taxes filed to do things like apply for a home loan or apply for college financial aid. 

The one reason NOT to file your taxes sooner rather than later is “ If … you made much more in 2019 than you did in 2018 — then filing your 2019 return could actually prevent you from getting a coronavirus stimulus check.” And if you know that you could use a stimulus check, then you can wait until after the government has sent out a check based on your 2018 income. The Motley Fool notes that , “the federal government has explicitly said it expects taxpayers to be tricky in doing whatever they can to make sure they get their coronavirus money — and apparently, it’s fine with that.”