The U.S. government will postpone the April 15 tax payment deadline for millions of Americans, giving people an additional 90 days to pay their 2019 income tax bills in an unprecedented move in order to ease the economic pain caused by the coronavirus (COVID-19).
Overview
The coronavirus pandemic is causing people, organizations, and governments around the world to take unprecedented actions. The latest will benefit both American individuals and businesses.
The Internal Revenue Service (IRS), using authority under President Trump’s national emergency declaration, will extend the income tax payment normally due on April 15 by another 90 days.
Here’s the White House press conference announcing the news:
Individual Tax Payers
The 90-day tax payment delay is available for individual tax payers who would owe $1 million dollars or less – so really everyone except for the super rich.
It’s important to note that a tax payment delay doesn’t mean you don’t have to file your taxes on time. You still have to file by April 15th unless you apply for an extension.
Also, this is only for federal taxes. For state income taxes you may owe, look here to see whether or not your state is giving you a delay.
Corporate Taxes
This 90-day tax payment delay is also available for companies that would owe $10 million dollars or less, with the hope that the money can be used to pay debt obligations, employee salaries & benefits, and keep the company afloat.
The Bottom Line
I know that many people are in a financial crunch due to the ripple effects of coronavirus. Many companies are completely shut down and employees, especially in the service industry, are anxious about how they’re going to pay their bills and expenses.
This tax payment delay will hopefully provide a small cushion for those folks until the government agrees on what type of relief package Americans will be getting.
