It's Tax Day — and Even Though the IRS Delayed Deadline by a Month, Your State Taxes Might Be Due

Rachel DeSantis
·3 min read

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The IRS offered some relief to taxpayers by extending tax deadlines a month — but for some, it's still business as usual when it comes to state tax payments.

The Internal Revenue Service (IRS) announced in March that the federal income tax filing due date for individuals for the 2020 tax year was extended to May 17, a little more than a month after the usual deadline of April 15. So, too, were other tax deadlines, including making IRA contributions and filing certain claims for refund.

IRS Commissioner Chuck Rettig said in a statement that due to the pandemic, it was "a tough time for many people," and the IRS wanted to help taxpayers "navigate the unusual circumstances."

With that in mind, dozens of states followed the IRS' lead, and extended their state tax payments deadlines to May 17, too.

Two states, however — Hawaii and New Hampshire — warned residents not to expect an extension.

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New Hampshire's deadline remains April 15, while Hawaii taxpayers must file by April 20.

"We feel any extension to the April 15, 2021 due date, even by one month, risks causing confusion and does not offer meaningful relief to taxpayers who will still need to complete their 2020 tax return in order to calculate the estimated tax payment that continues to be due on April 15, 2021," the New Hampshire Department of Revenue Administration said in a statement.

Across the United States, most states have extended their deadlines, though you can check on the status of your state here.

Some gave their residents even longer than an extra month, like Iowa, whose deadline this year is June 1, and Maryland, which is giving taxpayers until July 15.

The IRS also announced that people in Texas, Oklahoma and Louisiana have until June 15 to tend to their taxes due to extreme weather that prompted disaster declarations from the Federal Emergency Management Agency (FEMA).

Individual taxpayers who need additional time can request a filing extension until Oct. 15, the IRS noted.

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Still, the agency warned that despite the extended deadline, estimated tax payments are still due on April 15, and must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments.

That applies to people who are self-employed, and those who make interest, dividends, alimony or rental income, according to the IRS, and as CNBC notes, mostly affects freelance and gig workers, and people with small businesses.

"Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds," Rettig said in the statement. "Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to."