Update: Tax Filing Deadline Has Also Been Extended

The IRS has extended the tax filing deadline to July 15. This announcement comes days after the deadline on tax payments was extended.

All taxpayers and businesses will now have additional time to file and make payments without interest or penalties. However, taxpayers who expect a refund should file as soon as possible and get their refunds once the tax return is processed.

Taxpayers may be able to get a further extension with Form 4868, which normally gives taxpayers until October 15 to file a return. It was not immediately clear how the delay in tax day would change the extension process.

IRS Postpones Tax Payment Deadline By 90 Days

This year, taxpayers and small businesses that face an April 15 tax deadline will be allowed more time to pay their taxes due, until the new deadline of July 15, 2020, with no penalties or interest charges.

The tax-filing deadline will remain April 15, and it's unclear at this time whether the IRS will officially extend that filing deadline as well. But the IRS will waive penalties and interest on tax payments for 90 days. Taxpayers owing less than $1 million in taxes can delay payment until July 15, as can corporate filers with tax debts under $10 million.

With a change in the federal deadline, state legislatures may follow suit since most taxpayers file their federal and state income tax returns at the same time. Seven states do not impose a state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Residents of New Hampshire and Tennessee also may not need to file a state income tax return, as the income tax of those two states is limited to investment income. California had already extended its state tax filing deadline to June 15.

What is Supplemental Security Income?

Supplemental Security Income (SSI) is a Federal income supplement program, administered by the Social Security Administration, that pays monthly benefits to people with limited income and resources who are disabled, blind, or age 65 or older. People who qualify for SSI are also able to receive Medicaid to pay for hospital stays, doctor bills, prescription drugs, and other health costs.

Unlike Social Security benefits, SSI benefits are not based on your prior work history. A person can qualify for SSI even if they don’t have enough of a work history to qualify for Social Security benefits. In addition, SSI is funded by general tax revenues (not Social Security taxes).

To meet the resource requirements, a person must have less than $2,000 (or $3,000 for a couple) in countable resources (see https://www.ssa.gov/ssi/text-resources-ussi.htm). A person receiving SSI benefits who has a change in resources (such as receiving a large sum of money from an inheritance or personal injury settlement) must report the change to the Social Security Administration 10 days after the end of the month in which the money was received. Severe penalties are imposed for failure to report. The receipt of the inheritance or settlement will likely cause the person’s resource to exceed the $2,000 ceiling. The person will therefore become ineligible for further SSI benefits unless the money is spent on exempt resources in the same month it is received, or the person sets up an ABLE account (if the disability began before the person was 26 years old) or a Special Needs Trust.