Federal, State Tax Filing Deadlines Extended For Virginians

VIRGINIA — The state and federal income tax filing and payment deadlines will be later in 2021 for Virginians.

On Friday, Gov. Ralph Northam directed the state's Department of Taxation to extend the individual income tax filing and payment deadline in Virginia from Saturday, May 1 to Monday, May 17. That follows an announcement from the Treasury Department and Internal Revenue Service Wednesday that the federal income tax filing and payment due date is extended from April 15 to May 17.

"Aligning Virginia’s filing and payment deadline with the federal government will provide additional flexibility and simplify the process for taxpayers," said Northam in a statement. "Even with this extended deadline, we encourage Virginians to file as soon as possible so we can get people the refunds they are entitled to while also protecting the Commonwealth’s strong fiscal footing."

The extended deadline only applies to individual income taxes and not to estimated payments for federal and state taxes. Individuals owning Virginia taxes must make payments by May 17 to avoid penalties. Interest may accrue beyond the original deadline of May 1, but the Virginia General Assembly will consider legislation to address this during a reconvened session in April.

For federal taxes, there won't be penalties and interest for federal income tax payments paid by May 17. On May 17, penalties, interest and additions to tax will start to accrue on unpaid balances.

Individual taxpayers needing additional time to file federal taxes beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or the Free File page on the IRS website. Taxpayers should still pay any owed federal income tax by May 17 to avoid penalties or interest.

The Virginia Department of Taxation recommends electronic tax filing, which allows individuals to request direct deposit if a refund is expected. Individuals who made $72,000 or less in 2020 are eligible to use Free File to file the federal and state return through free tax preparation software.

"Filing electronically is the fastest and most efficient way to submit your return, get it processed and get your refund," said Virginia Tax Commissioner Craig M. Burns. "Due to the COVID-19 protocols that are in place, it could take longer for us to process paper returns."

The IRS expects most federal tax refunds with electronically filed returns would be issued within 21 days.

More information about filing tax returns is available from the Virginia Department of Taxation and IRS.