HUNTSVILLE, Ala. (WHNT) — On Wednesday, the IRS announced that it would be extending the federal income tax filing deadline until May 17.
This left some people wondering if Alabama state income tax filing deadlines would be delayed as well. On Thursday, the Alabama Department of Revenue provided clarification. The state says it automatically provides an extension whenever there is a corresponding federal extension.
While Alabamians now have until May 17th to file their federal and state income taxes, there are some important differences to be aware of.
When it comes to federal income tax payments, the IRS will be postponing those deadlines as well.
“Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed.”INTERNAL REVENUE SERVICE
However, the Alabama Department of Revenue will only be waiving late fees on payments made after April 15th. Interest on payments made after that date will begin to accrue immediately until the payment is made.
“ALDOR is not authorized to waive interest, and any interest accruing from April 15, 2021, through the actual payment date will be due. Therefore, ALDOR encourages taxpayers to make their payments for the 2020 tax year as soon as possible to avoid the accrual of interest beyond April 15.”ALABAMA DEPARTMENT OF REVENUE
The extensions only apply to individual income tax filings for the 2020 tax year and do not apply to estimated tax payments that are paid quarterly by some taxpayers. If you pay the IRS quarterly and have a payment due on April 15th, the payment is still due on that date.
The IRS and Alabama Department of Revenue still encourage taxpayers to file their income taxes as soon as possible and to file electronically if you’re able to. The IRS says most returns filed electronically will be processed within 21 days.