ST. PETERSBURG, Fla. — You may have heard the IRS is extending its deadline for filing taxes this year.
Just like last year, the government is already way behind on tax returns because of the pandemic.
This year, at the same time, they’re also trying to process millions of stimulus payments.
Given all of that, the IRS has extended this year‘s tax deadline from April 15 to May 17.
But in Florida, there are some unique issues to be aware of.
“This is my 26th tax season and hands-down the craziest,” said Kim Justice, who owns Tax and Accounting by the Bay in Saint Petersburg.
Justice says in part, the IRS needs the time to get its own house in order.
Uncle Sam already has a backlog of about 6.7 million returns this year - that’s three times more than last year.
There are an estimated 25 million tax forms to process still left over from 2019.
Now, throw in a brand-new tax deduction this late in the filing season which will have many scrambling to change their tax returns – a break on the first $10,200 in unemployment benefits received in 2020.
“Now, it has to go to the IRS,” said Justice. “They have to get it to the tax preparers. All of our software has to be updated.”
While the new May 17 filing date gives most of us more time to pay our federal taxes, it’s important, says Justice, to remember that doesn’t include state income tax.
Florida doesn’t have one.
But snowbirds, people who have moved here for work, and even those who earned income outside of Florida still owe whatever that state’s income tax is, and the federal time extension doesn’t apply to state income taxes. It’s due whenever it’s normally due unless that state also makes a change.
“Even if you were a resident there for three months, two months, you still have to file those state returns,” said Justice, “Which is separate from your federal return.”
If you don’t want your tax return delayed there are a couple of insider tips from tax preparers.
First, Justice recommends filing electronically rather than mailing in paper forms.
Also, if you haven’t already filed your taxes, it might be worth waiting another week or two until those tax forms and software are updated to reflect the new deductions courtesy of the recently passed stimulus plan.
That way you don’t have to file an amended return which can often slow the process.
If you still think you need more time to file your taxes beyond the May 17 deadline, you can file for an extension, but, remember, you still have to pay your estimated taxes by that date.
An extension only gives you more time to file your tax paperwork, it’s not an extension to pay.
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