Updated: Extension to May 17th, Estimated Taxes and Unemployment benefit relief
Ok so a lot has happened since I lasted posted about the May 17th IRS tax extension. If you live in the state of PA, your tax return submissions have also been extended to May 17th and if you live in Lancaster County, its the same. Make sure you check with both your state and local taxing authorities to see if your tax return submission timeframe has been extended.
But, there is always a but, if you are paying estimated taxes, those are still due April 15th! So make sure you determine what you may need to pay and get those estimated payments in by then.
Unemployment benefit relief was given with the passing of the American Rescue Plan where $10,200 is not taxable. But what if you already filed? The IRS has a plan for that too: they will automatically process refunds on those benefits: https://www.accountingtoday.com/articles/irs-to-automatically-process-refunds-on-jobless-benefit-payments. DO NOT FILE AN AMENDED 2020 tax return if you included your unemployment benefits on your filed returns. This is very important and the IRS is urging you not to do this.
Yes this has been a crazy tax season for all, and as a CPA, I am glad the IRS, state of PA and my local county taxing authorities gave us some breathing room. Now back to work!