Treasury Secretary Steve Mnuchin has announced that the tax deadline has been delayed from April 15th to July 15th. This decision is a part of the stimulus package being put in place to help people cope with the economic strain caused by the spreading coronavirus.
Who does this deadline apply to?
The announcement, which was made via Twitter on Friday, said, “We are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” This extension applies to those who would owe less than $1 million in taxes. For companies, the cutoff is $10 million or less.
The Economic Basis for This Change
Mnuchin says that this change will leave $300 billion, which would otherwise have been paid to the government, in circulation in the economy temporarily. The recent economic downturn has made an increase in personal spending imperative and this money will hopefully be used within communities to help keep businesses alive as well as to help with medical expenses.
If You’re Owed a Return
If you are part of majority of Americans owed a tax refund from the government, it is best to file taxes as soon as possible. Already during this tax season, the Internal Revenue Service has issued refunds to 77.7% of those who filed their taxes by March 13th. So far, the average size of the tax refund per person is $2.973. Given the U.S. is in a national emergency, people are encouraged to file quickly to get their refund quickly, just to have a better safety net.