IRS to Extend Tax Filing Deadline to May 17, 2021

Date Update to May 17, 2021.

Reports indicate that the tax filing deadline for 2020 tax returns will be extended to May 17, 2021, from its usual filing date of April 15.

We saw an extension last year of the tax filing deadline as a result of Covid-19 and the significant number of shutdowns and closures to which many areas of the country were subject.

This extension is more the result of tax policy changes and the additional requirements of the IRS and Treasury Department that were part of the recently passed Covid relief/stimulus bill.

Stimulus checks were required to be sent to a majority of Americans beginning this past weekend, resulting in a focus for IRS officials and staff of making that happen in a timely manner.

Additionally, a policy change in the Covid bill excluded $10,200 of unemployment payments from 2020 from taxation. Likely, it will take some time for the IRS to address this change…as well as some tax filing software many Americans utilize for filing tax returns…to ensure this tax benefit is appropriately included in calculations.

So, it looks as though Americans will have an extra month to file this year’s tax returns.

However, if you’re likely to receive a tax refund, it’s probably best to file as early as you can.