DOTHAN, Ala. (WDHN) — Earlier this year, Gov. Ivey partnered with the IRS to help Alabamians by pushing the federal filing tax deadline back one month due to the COVID-19 pandemic.
“That put all of our prepares back in a little bit of a bind because it really limited the amount of time like 6, 7, or 8 weeks that we had to prepare tax returns so it was good to see a little bit of an extension,” ATC Services CPA Thomas Parish said
The extension includes more time to contribute to health saving accounts and retirement accounts. But quarterly estimated tax payments did not get an extension.
Thursday, Gov. Ivey signed senate bill 352 which will immediately waive interest on late payments on individual 2020 income taxes.
Tommy Parish with ATC Services says most of his clients receive a small Alabama refund which is usually not an issue with interests.
“But for the people that do owe then if you don’t pay it on time, they start charging you interest for the amount of money that you owe the state of Alabama that you haven’t paid yet same as the federal but that has been extended to May 17th,” Parish said.
If you want to get your refund in a timely manner, Parish says you need to file the times when you received stimulus payments.
“You get the exact amount of money you got in April or May and the exact amount you got in December or January. It’s good to put those in because if you don’t you could slow down receiving your refund,” He said.
Parish says if you withdrew money from your retirement accounts up to $100,000, you can split up your payments for the next three years.
And if you filed taxes on unemployment money before the change, you can get the refund back.