Tax Day: Don't Get Too Comfortable With the Delays

(Image from Biz New Orleans)

Tax Day, April 15th, the day when most individuals file their taxes, was once immutable. Everyone did get a one- or two-day break when April 15 fell on a weekend and the tax deadline date was postponed to the following business day, usually Monday but sometimes Tuesday like this year, i.e. today.

As the IRS always says, an extension of time to file one's tax return is not an extension of time to pay the liability, so one has to do most of the work anyway by April 15th and cut a check, if necessary, with the extension form.

People who live in San Mateo County are "fortunate": we don't have to pay the liability or file the 2022 tax returns, both Federal and State, until Monday, October 16th, because we live in a county that suffered flood damage. We also don't have to make the 2023 Estimated Tax Payments due in April, June, or September until October 16th. With much higher interest rates than 2022, the Estimated Tax delay could be a significant benefit because taxpayers can hold onto their money longer.

With two years of COVID and one year of floods, I'm getting accustomed to postponement of the tax deadline. But like my fellow citizens who got used to receiving government benefits and not paying rent, mortgages, or student loans during the pandemic, I can't get too comfortable.

Going back to normal is hard.