Recently, the federal and state of Illinois income tax filing and payment deadlines have been extended. Even with these recent changes, we want to encourage you to send in your 1040 information sooner rather than later. Here is why:
- If you have a refund, you will want to file as soon as possible to get your refund.
- Although the filing date for federal, Illinois and many other states has been extended, if there is an underpayment of estimated taxes, penalties will still apply. Taxpayers will need to have estimates paid in for 2019 as required or late payment penalties will continue to accrue.
Safe harbor estimates are as follows:
Federal:
1. 110/100% of the prior year
2. 90% current 2019 tax liability
Illinois:
1. 100% of 2018 liability
2. 90% current 2019 tax liability
In the case that you have underpaid your estimates for 2019, we recommend you pay in at least enough to meet the safe harbor immediately to stop these penalties from accruing through July 15th.
- Illinois first and second 2020 estimates are still due on 4/15 and 6/15 respectively.
- Federal second quarter 2020 estimates are still due on 6/15.
For more information, please contact:
Gregory A. Papiernik
312-726-4440
[email protected]
Caroline Overman
312-726-4440
[email protected]