Individual Tax Due Date Changes & American Rescue Plan Update

On Wednesday, the Treasury Department and Internal Revenue Service moved the tax year 2020 individual income tax filing date from April 15, 2021 to May 17, 2021. This change is automatic and requires no additional filing. Individuals can delay paying their federal income taxes for the 2020 tax year until May 17, 2021 and avoid penalties and interest. First quarter estimated tax payments for 2021 are still due April 15, 2021. As of today, the due date for Iowa individual income tax returns remains at April 30, 2021.

In addition to the individual due date changes, President Biden signed the American Rescue Plan Act of 2021 (“the Act”) into law March 11, 2021. The $1.9 Trillion Act addressed incentives for individuals as well as businesses. Below you will find some highlights of the areas impacted and links to where you can find more information.

Individual incentives include the following:

• Recovery Rebates
• Child Tax Credit changes
• Dependent Care Benefits
• Earned Income Tax Credit expansion
• Premium tax credits
• Student loan forgiveness taxation

For more information on individual incentives please visit our website here.

Business incentives include the following:

• Restaurant Revitalization Grants
• Extension & Expansion of Coronavirus Sick/Leave Pay
• Extension to the Employee Retention Credit
• Shuttered Venue Operators Grants

Please click here for more information on the business related incentives.

Please check our website or consult with your MHCS adviser for the latest updates on these provisions.