What Does July 15 Mean
As most everyone knows the income tax due date has been moved from April 15 to July 15 this year. This means that any income tax return that was originally due between April 15 and July 15 is now automatically July 15. But what does this mean for our farmers, especially those that have already filed their return by March 1, 2020.
- The due date for contributing to an IRA or Health Savings Account is July 15. If you have not made your contribution for either, you have until then to fund it based on your 2019 income. If you filed a tax return by March 1 and did not deduct an IRA and would like to fund it; you can contribute, file a “superseding” return and get your deduction.
- The due date for contributing to a pension or profit sharing plan is July 15 to get a deduction on your 2019 tax return. If you file an extension, you have until October 15 to make your final contribution (for individual returns).
- Refunds for filings after April 15 will likely receive interest from the IRS due to a quirk in the Tax Code.
Remember you can get an extension to “file” a return, not an extension to pay your income taxes. If you owe tax, make sure to make a payment with your extension request, otherwise, interest and perhaps a .5% per month late payment penalty will apply on any additional tax owed.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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