COVID-19 and Your Taxes

By TaxAct

Last updated: March 22, 2020

As your inbox floods with emails announcing school closures, a falling stock market, and measures to self-quarantine, filing your taxes has likely slipped your mind. And for good reason. The impact of the Coronavirus is vast and rapidly changing day-by-day.

At TaxAct, nothing is more important to us than the health and well-being of our customers, employees, and the communities in which we live and work. During this time, we encourage you to make every effort to stay as protected as possible. And when you have time to put the focus back on your taxes, we’ll be here to help. Rest assured, we are equipped to continue offering all of our services without interruptions.

The impact of COVID-19

Amid all of the COVID-19 news, there has been a lot of speculation this week regarding how the pandemic may impact tax season. Numerous changes and updates occurred over the past few days. We’d like to help set the record straight, according to the most recent developments.

On March 20, the Secretary of Treasury announced the tax deadline to file your federal individual income tax return has been extended to July 15, 2020. All filers now have an extra 90 days to file their federal individual income tax returns without being subject to late filing penalties. You can read the official IRS notice here.

Other important details to know:

  • Tax payment deadline extended: The deadline to make tax payments was also pushed back to July 15, 2020. That means if you have a tax bill this season and need extra time to pay it, your wish was granted. All individual and non-corporate tax filers can hold off on submitting those payments (up to $1 million for tax year 2019) until July 15 without accruing penalties and interest. This deferment also applies to estimated tax payments  originally due on April 15 for tax year 2020. 
    • Note: Currently, the IRS does not allow direct withdrawals after April 15. That’s why you cannot schedule a payment after that date within the TaxAct product at this time. The agency is working to adjust that restriction, and we will update the product when that change is complete. In the meantime, you can pay your tax bill by choosing to submit a payment voucher, mailing a check, or using a credit card.
  • No extra forms needed: You do not need to file a tax extension to take advantage of the new deadline. The IRS will automatically waive all interest and penalties.
    • Note: If you need additional time beyond July 15 to file your return, you need to file an extension.
  • State deadlines vary: Several state deadlines have been adjusted as well. Click here for updates on those changes. 

Your refund is waiting

Despite the impact of COVID-19, the IRS is still processing returns as usual. If you expect to receive a refund, we highly encourage you to not wait to file your return. You can anticipate receiving your refund at the normal rate. E-filing your return makes it easy to keep yourself and your private tax information safe and secure.

Continue to check this page for the most recent updates on the tax season changes related to COVID-19.  And as always, if you have any questions, our Customer Care Team is ready to help.

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TaxAct is the savvy tax-filing partner helping ambitious Americans work the tax code to their advantage. TaxAct's do-it-yourself digital and downloadable products help customers find every tax break they deserve by finding them credits and deductions they may have never known existed.

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