Federal tax filing deadline
The federal tax filing and tax payment deadline has been moved to July 15th. No interest or penalties will be charged during this extended time period. You are still able to file for an extension, if needed. That deadline will remain October 15th according to this U.S. News article.
IRA Account Contributions for 2019
This extension also moves the 2019 IRA contribution deadline to July 15th! A brief article from InvestmentNews.com on regarding IRA contributions can be found here.
State tax filing deadlines
Each state can choose whether to extend their tax filing deadlines as they see fit. Below is the information currently available for a few states in which we do business.
- California: Tax filing and payment deadline extended to July 15th. Extension also applies to 2020 Q1 and Q2 estimated payments, 2020 LLC taxes and fees, and 2020 non-wage withholding payments.
- Oregon: Expected to follow suit with the Federal deadlines for 2019 income tax filing & payments. Estimated payment due dates for 2020 are not being extended, although interest may not be charged on underpayments (to be determined by the Oregon DOR).
- Alaska: No income tax.
- Colorado: Will mirror Federal guidelines.
Please reach out to your Client Advisor for additional state information.
New Senate bill – CARES Act
The Senate has introduced a bill to expand access to retirement account funds for those impacted by COVID-19. The bill would waive the 10% penalty on distributions from IRAs and retirement accounts up to $100,000 for anyone, including their spouse or dependent, who are diagnosed with COVID-19, experiences hardship due to quarantine, such as reduced work hours, inability to work due to child care or other issues, and “other factors as determined by the Treasury Secretary.” Income tax on these withdrawals can be paid over a three-year period, and individuals would be allowed to repay the amount withdrawn into the account over three years without those repayments counting towards contribution limits. Retirement plan loans would also be adjusted to allow loans up to the lesser of $100,000 or 100% of the participant’s vested balance (double the current limits). Anyone with outstanding loans from the date this bill is enacted through 12/31/2020 would be allowed to delay loan repayments for up to one year. For additional information regarding the CARES Act, please see this article from the National Association of Plan Advisors.
Important Disclosures: Nothing in this article is intended to provide, and you should not rely upon it for, accounting, legal, tax or investment advice or recommendations. We are not making any specific recommendations regarding any financial planning or tax strategy, and you should not make any financial planning or tax decisions based on the information in this article. The intention of this article is educational and it is intended only to discuss a few limited aspects of very complex tax legislation. This article is not a comprehensive or complete summary of considerations regarding its subject matter. The third-party hyperlinks included in this article are from sources independent of Freestone and Freestone affiliates. Freestone did not approve or endorse any of the articles provided by the third-party hyperlinks. Each individual is in a different situation and has different items to address, and the options in this article are not appropriate for everyone. Please consult your Freestone client advisor and a lawyer regarding options specific to your needs.