The IRS recently announced that it is extending the deadline for taxpayers to contribute to their eligible retirement accounts and health savings accounts for the 2020 tax year until May 17, 2021 (the same day that individual tax filings are now due). This means that freelancers have more time to make contributions to their individual retirement accounts such as IRAs and Roth IRAs and Health Savings Accounts (HSAs).
Some other IRS extensions and updates to be aware of which may impact your freelance tax situation include:
Please remember there has not been an extension for estimated taxes this year. Freelancers need to file their first quarter estimated taxes by the normal April 15 deadline to avoid fines and penalties. In addition, don’t wait until the last minute before the new income tax filing deadline—especially if you have a complex tax situation and need professional assistance. By filing now you can ensure you won’t have to file a further extension and you’ll also be able to get any refund you are owed faster.
Jonathan Medows is a certified public accountant licensed in New York, New Jersey, Maryland, and Pennsylvania. He is also a recognized expert in taxation for freelancers and the self-employed—often tapped for his expert knowledge and perspective on self-employment taxation by national and regional publications such as The New York Post, BusinessWeek, Forbes taxation blog, WebCPA, CPA Practice Advisor, and others. You can read some of Jonathan’s press coverage here.
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