Filers will have until May 17, the agency said Wednesday, March 17.

WASHINGTON (TIP): The Internal Revenue Service will give Americans extra time to file their taxes as a result of the pandemic. Instead of the usual April 15 deadline, filers will instead have until May 17, the agency said Wednesday, an extension that will ease the burden on filers dealing with the economic upheaval caused by the coronavirus, which has put millions out of work or caused their hours to be cut.

“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,” said Chuck Rettig, the IRS commissioner.

The one-month delay is not as much extra time as the IRS offered last year, when the filing deadline was pushed to July 15. But it should make it easier for taxpayers to get a handle on their finances — as well as tax changes that took effect just this month with the signing of the American Rescue Plan.

The new law made the first $10,200 of unemployment benefits received in 2020 tax-free for people with incomes of less than $150,000, a significant change for many whose jobs were affected by the pandemic. The IRS said last week that it would provide a worksheet for paper filers and coordinate with tax-software companies. The agency also asked those who were eligible for the tax break but had already filed their 2020 returns not to file an amended return until it had issued additional guidance.

But Mr. Rettig said taxpayers should not unnecessarily delay filing, especially if they will be receiving money back.

“Filing electronically with direct deposit is the quickest way to get refunds,” he said. (Taxpayers who file electronically can generally expect to receive any refund within 21 days.)

The IRS emphasized that the extra time is only for federal returns, not state returns, so taxpayers should check with their state tax agencies about any deadline changes. It also does not apply to estimated tax payments that are due on April 15, which are still due on that day.

Filing quickly also can benefit people whose 2020 income makes them newly eligible for a stimulus payment, or eligible for a larger one. (The latest stimulus bill includes a provision for the Treasury Department to make supplemental payments by September; if you don’t get one by then, you should be able to claim what you’re owed when you file your 2021 taxes.)

(Source: NY Times)