New York Extends Tax Filing and Payment Deadlines
On the heels of the recently enacted federal deadline change, the New York State Department of Taxation and Finance announced important income tax filing and payment extensions related to upcoming deadlines. The extension is designed to provide additional relief for individual taxpayers in light of the ongoing COVID-19 pandemic.
Commissioner Schmidt issued Notice 21-1, which specifically extends the deadline for New York State personal income tax returns. Individuals will now have until May 17, 2021, to file and pay their 2020 taxes.
What Didn’t Change
The relief is limited to 2020 personal income tax filings and payments only, and it excludes many other tax filing and payment deadlines that are due by April 15. This means that tax returns and payments, including 2021 estimated payments for C corporations, trust and estates, and certain other filings are still due on their originally scheduled due dates. Additionally, 2021 first quarter estimated tax payments for individuals are still due by April 15.
What You Should Do Now
While the New York State income tax filing deadline for individuals has been extended until May 17, our recommendation is to continue working toward the tax deadline as if it were still April 15. This enables us to more quickly evaluate your tax position in order to determine what is most beneficial for you. For those who will receive a refund, we can file your return so you receive the payment as soon as possible. For those who will owe tax, you can proactively determine the amount and then plan to delay the payment until closer to the deadline.
For those who pay quarterly estimated tax payments, please continue to work closely with your KSM advisor to ensure they have all the information needed to calculate your estimate so you can make the payment prior to the April 15 deadline.
We’re Here To Help
Like New York, many states will conform to the federal extended deadline of May 17. As always, we will closely monitor state and local legislative changes and market conditions to help our clients effectively navigate these changes and mitigate the financial effects. If you have questions about how this extension affects your situation, please reach out to your KSM advisor or contact us. We appreciate the opportunity to serve you as we navigate these changes together.
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