Tax Corner

Extended Individual Tax Filing Deadline

A reminder that the IRS has extended the original due date to file individual and C Corporation tax returns, as well as pay any associated tax due, until May 17, 2021. Most states, including Minnesota and Wisconsin, have followed the Federal due date extension. Any tax payment made for 2020 by May 17th will avoid late payment penalties. The due date to make a 1st quarter estimated tax payment for 2021 remained as April 15th, 2021.

Extension to make Roth IRA, Traditional IRA, and HSA Contributions

With the extension to the due date for 2020 tax returns includes an extension of time to make Roth IRA, Traditional IRA, and HSA contributions for the 2020 tax year. You have up to the revised due date of May 17th to make IRA and HSA contributions and have them applied to the 2020 tax year. Note that if your tax return has already been filed, claiming deductible contributions to Traditional IRA’s and an HSA produces tax benefits. A cost/benefit analysis of amending your tax returns should be considered if your returns have already been filed.