As you are no doubt aware, the COVID-19 pandemic has disrupted the American economy, and therefore the ability of millions of Americans to pay their taxes on April 15. With this in mind, the federal government extended the tax file date for 2020 in Union City, NJ, and now the State of New Jersey has followed suit. How will this affect you? Read on to learn more.
State and federal tax extensions
In late March, at the beginning of the coronavirus pandemic, the federal government extended the tax filing deadline to July 15, 2020, without penalties. That means that instead of filing for an extension when you need more time to do your taxes, and pay the amount owed by April 15, everyone was automatically granted a 90-day extension. This allows individuals to defer up to $1 million in income tax, and up to $10 million for corporations.
New Jersey was the very last state to follow suit, passing a similar resolution on April 1. The state operates on a July 1 to June 30 fiscal year; Governor Murphy announced that in 2020, the fiscal year would begin on September 30. This is due to the extreme financial hardship that many residents have experienced since the beginning of the pandemic, including mass unemployment, furloughs and other blows to their ability to pay.
Filing extensions after July 15
Of course, you may not be able to file and pay your taxes by the July 15 deadline, either, depending on your situation. In that case, you are still able to file for another extension—however, this one is not granted automatically like the federal and New Jersey automatic extensions outlined above. To do so, call your accountant or fill out this State of New Jersey extension request form. If granted, you will receive another five and a half months to file and pay your state taxes.
Schedule your tax appointment today
Take advantage of the coronavirus-related extended tax file date for 2020 in Union City, NJ when you call the accountants at Kedean’s Generation. We can not only help prepare taxes for you and your business, but we’ll help you maximize any returns you’re getting. As you know, tax law is complicated, and it’s constantly changing. When your finances are complicated—especially if you’re self-employed, own a small business, have rental properties or have other large investments—it’s smart to hire an accountant.
Using an accountant is not only wise for maximizing your returns—they can also add another layer of reassurance. After all, no one wants to be audited, but your chances go up significantly when you make over $200,000 per year. Having an experienced accountant who will retain your records provides a valuable source of protection if the IRS decides to comb through your returns.
Are you ready to take advantage of the extended tax filing deadline for both federal and state taxes? It’s not too late to book your appointment with Kedean’s Generation. Give us a call today to make an appointment!
Categorised in: Tax Preparation