In a relief effort among the COVID-19 outbreak, the US government has postponed the tax filing deadline from April 15 to July 15, 2020. The deadline postponement applies to federal taxes only. You can also defer the payments of your federal income taxes to July 15, 2020. There will be no penalties or interests charged, no matter the amount you owe.
The Treasury Department and the Internal Revenue Service (IRS) encourage American citizens to continue to file their taxes so they can get their tax refunds. You should also check your state tax deadlines, as they may vary.
News Highlights
- Treasury Secretary Steven Mnuchin moves the tax-filing deadline to July 15
- Taxes for individuals and businesses will be penalty and interest-free
- Tax filing postponement applies to federal taxes only, not state income taxes
Deadline for Filing and Paying Taxes Pushed 3 Months
April 15 is Tax Day in the USA. It marks the deadline for people to file their taxes. This year, the IRS postponed it due to the fast-spreading Coronavirus and isolation measures. The Federal Government moved Tax Day to July 15, which is the day the tax payments are due under normal circumstances.
Steven Mnuchin, the US Secretary of the Treasury, announced the news through his Twitter account.
Few days prior, during a White House briefing, the Treasury Secretary announced that the IRS would not charge penalty or interest for 90 days for those individuals, small businesses, and pass-throughs who owe up to $1 million in taxes, and $10 million for corporations. All Americans, except the super-rich, therefore, will get tax relief, according to Mnuchin.
The Treasury Secretary also encouraged the citizens to continue filing their tax returns.
We encourage those Americans who can file later taxes to continue to file their taxes because you will get tax refunds, and we don’t want you to lose out. Many people do this electronically, which is easy for them and the IRS.Steven Mnuchin
The Delay Applies to Federal Tax Only
The Internal Revenue Service, however, cautioned that the tax filing postponement applied to federal taxes only, not state income taxes. In its Wednesday statement, the IRS detailed:
Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details.Internal Revenue Service
Additional information on state tax filing and payment delays in different states is expected to be published soon. The deadlines already vary from state to state, so it remains to be seen whether further changes will be introduced.
What Does This Mean for You and Online Casino Gameplay?
As an online casino player in the US, you need to pay taxes on your gambling winnings and report your losses. Like with other sources of income, winnings from betting are taxable. As such, so you must report these earned profits to the IRS on your tax form.
Online casinos usually issue a W-2G form for winnings bigger than $1,200. Even if they don’t, you need to provide the IRS with your history of gambling winnings and losses.
Report Your Gambling Income Taxes
Take advantage of the postponement of deadlines and file your taxes –including your betting income history– with no penalties or interests charged. If you have never done it before, or if you are not quite sure how to proceed, OUSC can help you. Visit the OUSC guide on how to report gambling income taxes.
