COVID-19: Tax Deadlines & RMDs
It’s almost April 15th and you all know what that means…well, in a typical year that would mean your income taxes are due, but for 2020, that’s not the case. Due to the spread of COVID-19 across the United States, income tax filing and payment due dates have been extended. Also, Required Minimum Distributions for 2020 have been suspended.
Income Tax Filing
- 2019 Federal, PA (State), & Local taxes extended until July 15th –
- Federal – Federal income tax filing and payment due date is extended to July 15, 2020.1
New Schedule for 2020 Federal Estimated Tax Payments2
Quarter Normal Due Date NEW Due Date
1 April 15, 2020 July 15, 2020
2 June 15, 2020 July 15, 2020
3 September 15, 2020 September 15, 2020
4 January 15, 2021 Jan. 15, 2021
- Pennsylvania – PA income tax filing and payment due dates are extended to July 15, 2020. This extension also applies to estimated payments for the first and second quarters of 2020.3
- Local – PA Local governments will follow the Pennsylvania government in decisions regarding tax extensions (and payment dates).
- IRA contributions and Health Savings Contributions for 2019 – normally due April 15th – an extension has been granted to make 2019 contributions until July 15th.
- Continue to provide us your tax documents – Please note that even though the tax filing deadline has been extended, we ask that you do your best to respond to our questions and requests for documents in a timely manner as we are working remotely to complete all tax returns.
Required Minimum Distributions (RMDs)
- What is an RMD? – A Required Minimum Distribution is the minimum amount you must withdraw from your retirement account each year once you reach age 72 (70 ½ if you reached 70 ½ before January 1, 2020)
- RMDs Suspended—The CARES Act suspends the RMDs in 2020 for a wide variety of retirement accounts (for both owners as well as beneficiaries) as well as the ability to return current-year distributions.
As a reminder, our office is closed, and we are working remotely. We will continue to monitor our email, answering machine, fax, & mail if you should need to contact us during this time. As always, thank you for your patience and understanding as we all try to adjust to this new normal.