On or around April 15th every year, many people rush to file their annual income tax returns and make last-minute prior year IRA contributions. However, the past two years have been different. Last year, the tax return deadline was moved to July 15th, 2020. And this year, the deadline has been moved to May 17th, 2021.
When implementing these deadline extensions, the IRS has also opted to extend the deadline to make prior year IRA (and ROTH IRA) contributions to match the deadline for filing tax returns. Notably, for those taxpayers that pay quarterly estimated tax payments, those estimated payments were still due to be paid by April 15th, 2021.
One important item to be aware of is that the above deadline extensions, as announced by the IRS, only apply to federal income tax returns. State and local tax return filing deadlines are not automatically updated to match, so it will be important to check with your specific state (or your tax advisor) to verify the deadline for your specific state (and local municipality) return.
If Master’s can assist you in addressing any tax planning questions or concerns that you or your accountant might have, please do not hesitate to reach out!