Andrew Goldman has been writing for over 20 years and investing for the past 10 years. He currently writes about personal finance and investing for Wealthsimple. Andrew's past work has been published in The New York Times Magazine, Bloomberg Businessweek, New York Magazine and Wired. Television appearances include NBC's Today show as well as Fox News. Andrew holds a Bachelor of Arts (English) from the University of Texas. He and his wife Robin live in Westport, Connecticut with their two boys and a Bedlington terrier. In his spare time, he hosts “The Originals" podcast.
When are taxes due?
April 15, 2020
The 2020 tax deadline is April 15 (for most people). It’s the Super Bowl of taxes and mentioning it will probably raise the resting heart rate of any American accountant or post office employee. April 15 falls on a Wednesday in 2020. It’s the official due date for individuals to file their tax returns as well as pay any taxes due for the year. (Tax returns must either be postmarked or e-filed by tax day.)
But the tax deadline isn’t all bad news — you could say it’s one of the biggest annual investment deals in the United States. That’s because when you open an IRA and contribute some dollars to it, that money is deducted from your federal income tax. In other words, your current tax bill is lowered (lucky you!) Of course, you’ll still have to pay tax on that income when you retire. However, there’s one major advantage — when you retire your tax rate will likely be lower than it is now, as you’ll probably be earning less income.
In certain years, April 15 may get pushed back a few days if it falls on a weekend or a holiday (in 2017, a banner year for tax prep laggards, tax day got pushed back to Tuesday April 18, because Emancipation Day fell on Monday, April 17.) For many people, however, April 15 is not the only tax deadline to be inputted into the calendar. Since they don’t have employers who withhold federal and state taxes, freelancers and other gig economy folks are required to file quarterly taxes on or just after the 15th of April, June, September and January. (State filing deadlines may be slightly different.) Our procrastinating friends can be depended upon year after year to file form 4868 or go to the IRS’s website to receive a six-month filing extension. It’s totally legal, but there’s no putting off the extension request — it must be made by April’s tax day, and any taxes due must be paid that day or the IRS will assess interest and possible penalties.
For those among you who don’t feel like counting with your fingers, six months from April 15 is October 15.
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