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IRS delays tax deadline for Texans, others impacted by deadly winter storms to June

The Internal Revenue Service has extended the tax filing and payment deadline for all Texans impacted by last week’s winter storms and the lingering energy and water issues.
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Posted at 7:34 AM, Feb 23, 2021
and last updated 2021-02-23 11:55:32-05

The Internal Revenue Service has extended the tax filing and payment deadline for all Texans impacted by last week’s winter storms and the lingering energy and water issues.

In a statement posted to their website, the IRS says their decision to extend the deadline for Texans to June 15, 2021 came after the disaster declaration issued by FEMA.

The extension applies to individuals, households and businesses living or doing business in any of Texas’ 254 counties. It will also apply to taxpayers and businesses operating in other counties in nearby states that are included in the disaster declarations issued by the Federal Emergency Management Agency.

The extension includes personal tax returns normally due April 15, business tax returns normally due on March 15, and other tax filing and payment deadlines until June 15.

The IRS has information about claiming disaster-related losses on federal income tax returns on their website.

The IRS was already running behind this year. Earlier this year they announced they wouldn’t begin accepting and processing 2020 tax returns until Feb. 12. This is more than two weeks later than last year. The agency said they needed more time to program its systems to reflect new tax rules.

Last year, in the midst of the coronavirus pandemic, the IRS delayed everyone’s tax deadline to July 15, 2020. No nationwide delay has been issued for 2021.

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NEW TAX LAW

If you’re wondering how you’re affected, not to worry, we have your back. We’re doing the work to make sure our products are up to date and that you can use them to file your taxes with complete confidence.

That said, many folks are wondering what’s in the bill and how it might affect them. Here’s a recap of some of the major tax provisions in the new tax bill and how they may impact you.

Increased Standard Deduction: The new tax law nearly doubles the standard deduction amount. Single taxpayers will see their standard deductions jump from $6,350 for 2017 taxes to $12,000 for 2018 taxes (the ones you file in 2019). Married couples filing jointly see an increase from $12,700 to $24,000. These increases mean that fewer people will have to itemize. Today, roughly 30% of taxpayers itemize. Under the new law, this percentage is expected to decrease.

Increased Child Tax Credit: For, families with children the Child Tax Credit is doubled from $1,000 per child to $2,000. In addition, the amount that is refundable grows from $1,100 to $1,400. The bill also adds a new, non-refundable credit of $500 for dependents other than children. Finally, it raises the income threshold at which these benefits phase out from $110,000 for a married couple to $400,000.

Personal and Dependent Exemptions: The bill eliminates the personal and dependent exemptions which were $4,050 for 2017 and increased to $4,150 in 2018. State and local taxes/Home mortgages: The bill limits the amount of state and local property, income, and sales taxes that can be deducted to $10,000. In the past, these taxes have generally been fully tax deductible. The bill also caps the amount of mortgage indebtedness on new home purchases on which interest can be deducted at $750,000 down from $1,000,000 in current law.

Health Care: The bill eliminates the tax penalty for not having health insurance after December 31, 2018. It also temporarily lowers the floor above which out-of-pocket medical expenses can be deducted from the current law floor of 10% to 7.5% for 2017 and 2018. So for 2018, you can deduct medical expenses that are more than 7.5% of your adjusted gross income as opposed to the higher 10%.

Fastax Has You Covered

Don’t worry about memorizing these tax changes the majority of which are for 2018 taxes that you file in 2019. Fastax has you covered and will be up to date with the latest tax laws. Call us for tax help at 661 493-8512