Ask the Tax Lady: federal extension adds confusion to tax deadline

Internal Revenue Service federal tax form
Internal Revenue Service federal tax form Photo credit Getty

BUFFALO, N.Y. (WBEN) The December blizzard has resulted in the Internal Revenue Service pushing back it's filing deadline.

"Erie, Niagara, Genesee, St. Lawrence and Suffolk counties are all covered
by a Federal Emergency Management Agency disaster declaration," said
Esther Gulyas, CEO of EG Tax on WBEN Thursday.

"As a result, the federal government said we're going to give individuals and households an extra month to file."

May 15 is now the deadline to file your federal return.

But the State of New York is not following suit. (At least as of Thursday morning.) And the two returns usually piggyback on one another. Most tax preparers send federal and state returns electronically at the same time.

"The state is saying we want the tax returns by April 18," added Gulyas. "If you're someone who is looking at the federal extension, you'll have to file an automatic extension in New York State, because the state has not granted the same request."

Confusing? Gulyas said yes. But adds, they are two different taxing authorities.

The so-called "Tax Lady", who has processed thousands of tax returns already this year, noted that very few people that she has encountered suffered any inability to file a tax return because of the blizzard.

She considers the extension a gift from the federal government. Adding, "Remember if you take advantage of the extra month, you're letting them keep your money for another month, if you're getting a refund."

On another point, Gulyas said if you are going with the May 15th federal deadline, and are filing for a state extension, and if you have taxes due, they must be paid by April 18th.

The reason taxes are due April 18, instead of April 15, is because the 15th falls on a Saturday and the District of Columbia's Emancipation Day holiday, falls on April 17.

The extended deadline also applies to making contributions to individual retirement accounts, IRA's, for the 2022 tax year.

Featured Image Photo Credit: Getty