Filing Due Date Extended – Arizona Tax Credits Must be Paid by 4-15-20

The Treasury Department and Internal Revenue Service announced Friday that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. The deferral of income tax payments includes both 2019 balance due and the 1st quarter 2020 estimated tax payment.

Individual Retirement Account (IRA) contributions have been due by 4/15 of the following year to qualify for the prior year. With the extended due date of the income tax return, this also extends the date in which to make your IRA contribution for 2019 to 7/15/2020.

The Arizona Department of Revenue (ADOR) issued administrative action that extends the income tax filing deadline to July 15, 2020 to mirror the new federal deadline. The new deadline means taxpayers filing state tax returns or submitting payments after the previous April 15 deadline will not be assessed late payment penalties or interest. As of now the deferral of Arizona income tax payments includes only 2019 balance due however it is expected that Arizona will clarify this week and include the 1st quarter 2020 estimated tax payment as well.

Unfortunately for Arizona, contributions to certified school tuition organizations, public schools, and qualifying charitable organizations remains due by 4/15/2020 to qualify as a credit on the 2019 return. State law does not authorize the Director or ADOR to alter the scope of these statutorily‐provided credits.

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