Federal, MD Income Tax Filing Deadlines Change In 2021

MARYLAND — Federal tax authorities this week followed the lead of the Maryland comptroller and pushed back the deadline for tax returns. Maryland residents will once again get some breathing room for filing their federal and state income tax returns, with more time allowed for state filing.

The Internal Revenue Service said Wednesday the due date for the 2020 tax year for individuals was being moved by about a month: from April 15 to May 17. The agency said it would provide formal guidance in the coming days, but urged taxpayers to file electronically as soon as they can to ensure they receive stimulus payments due them.

In Maryland, Comptroller Peter Franchot has pushed back the state income tax filing deadline because state and federal pandemic relief measures require tax form revisions.

The state income tax filing deadline for Marylanders has been extended by three months to July 15, 2021. No interest or penalties will be assessed if returns are filed and taxes owed are paid by the new deadline.

"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, while also working on important tax administration responsibilities," said IRS Commissioner Chuck Rettig in a news release. "Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to."

Here’s what else the IRS said taxpayers need to know about the extended deadline:

• Taxpayers can postpone federal income tax payments that would be due April 15 to May 17 without any penalties or interest regardless of the amount owed
• The postponement is for individual taxpayers, including those who pay self-employment tax
• Penalties or interest in unpaid balances will begin to accrue May 17
• Taxes paid by May 17 will automatically avoid interests and penalties
• Taxpayers will automatically qualify for this relief and don’t need to file any forms

Anyone who needs an extension beyond May 17 can file to request an extension until October 15 but any taxes due would still need to be paid by May 17.

The agency also clarified that the federal extension doesn’t extend to estimated tax payments; the money withheld in paychecks or the estimated tax payments people make if their income isn’t withheld automatically.