Federal and Maryland tax deadline will remain on April 15th, 2021
Frederick, MD (KB) CPA Rob Riley has been filing taxes for over 25 years. He said the deadline to file taxes this year has not changed.
“As of today, the Federal and Maryland tax filing deadline for filing your 2020 individual tax return has not been pushed back, and remains Thursday, April 15th, 2021,” he explained.
Riley said those who need additional time to file will be required to fill out an extension application.
He advised the best time to file if you expect to get returns is as soon as all the documents are complete.
“The longer you delay, the longer the IRS has your money and they won’t be giving you interest on what’s due to you,” he said. “In fact, the IRS recommends that in order to speed refunds, once you have everything handy, you should file electronically with direct deposits.”
Riley also said many people have had questions about whether or not stimulus money will be taxed.
“Stimulus money received will actually not be taxed on your 2020 return, and it won’t be considered as earned income,” he explained.
Riley said unemployment money will still be subject to taxes.
He said some people have experienced a change in stimulus eligibility from 2019 to 2020. Riley noted a Recovery Rebate Credit Worksheet.
“Those folks that were eligible, but for some reason didn’t receive their stimulus payment last year, this Recovery Rebate Credit Worksheet is where you’re going to claim your credit on your 2020 return,” said Riley.
Riley said the IRS normally starts processing returns in late January, but due to the complexity of this years’ returns, it will begin processing on February 12th, 2021.