The Treasury Department and Internal Revenue Service have announced that the federal income tax filing and payment deadline of April 15 has been extended to May 17, 2021 to help taxpayers with the unusual circumstances brought on by the pandemic. There is no action needed on your part to qualify for this extension.
The state of Pennsylvania has extended the state filing deadline to May 17th as well, and other states may follow. You can check with your state here for specific details.
Also, three important points you should know as you gather your tax forms.
•While in the past two years we’ve alerted you to be on the lookout for an additional Form 1099 from Carillon Funds for your money market positions, those positions are now integrated at Raymond James and you will not receive separate Form 1099s for money market positions this year and likely going forward.
•For those who are usually obligated to take Required Minimum Distributions (RMDs) from their IRAs or beneficiary IRAs: because RMDs were waived in 2020 via the CARES Act, you will not receive a 1099-R if you did not take an RMD or any other distributions from your IRA in 2020.
•If you took an RMD from your IRA last year but then paid it back once you learned RMDs had been waived, your Form 1099-R will reflect the original payout, but not the return of the funds. The form is still likely correct, since tax-free rollovers are generally not reflected on the 1099-R. Be sure to inform your tax preparer if you returned your RMD so they can properly report it.
It’s complicated and TGS is here to help!
Everyone at TGS Financial is accustomed to collaborating with the various professionals on our clients’ financial teams. Many of our clients have given us permission to communicate directly with their CPAs. Especially this year, please do not hesitate to reach out to TGS Financial should you or your tax preparer have questions this tax season.
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