What You Need to Know
- Business corporation tax returns did not get extended due dates.
- Not all states are going along with the federal stimulus law that exempts the first $10,200 of unemployment benefits from taxes.
- Higher taxes on corporations and taxing ‘book’ income seem likely.
As tax time kicks into full gear, CPA Ed Slott of Ed Slott & Co. says advisors should heed these last-minute recommendations.
First, the May 17 tax filing deadline does not apply to first-quarter 2021 estimated tax payments — which are still due by April 15, Slott warns.
“Most times, these payments are based on the income from the prior year, and since 2020 was such a strange and inconsistent year as far as personal earnings, you might need to have that info available by April 15 even you won’t be filing taxes until May 17,” Slott told ThinkAdvisor Thursday via email.
Also, corporation income tax returns did not get extended due dates, and Form 1120 is still due by April 15,” the tax and retirement expert said.
He added that other business returns for pass-through entities — like partnerships, LLCs and S-corps — were due March 15.
“Although extensions can be filed, any corporations that owe tax for 2020 must have that paid by April 15, 2021,” he said.
Also, “make sure your state has also extended their due dates,” he added. “I believe at this point most have, but it’s good to check to be certain.”