President Donald Trump announced on March 20th that the IRS tax filing deadline has been extended to July 15th due to the global pandemic. This only makes sense because many tax-related government resources have been closed since the outbreak. Furthermore, since numerous businesses have been closing their doors, it has been difficult for tax payers to reach their accountants or other tax preparation services. The president's announcement only pertained to American's federal tax returns, though. The deadline for Individual states' returns remained at April 15th.
For anyone who has ever done their own taxes, it is pretty obvious that the federal return should be done before their state returns. After all, many states' tax return forms specifically ask for values from the federal 1040 form. So the extension of the federal deadline doesn't really help much if the individual states don't follow suit. State governments recognize this, and they have been extending their deadlines as well. However, there was one hold out - New Jersey.
As of earlier this week, New Jersey was the only state that had yet to officially extend the tax filing deadline from its original April 15th date. This frustrated many New Jersey residents and accountants. On the one hand, the state's "stay at home" advisory had prevented citizens from effectively accessing the resources they need to finish their returns. On the other hand, the deadline was only 2 weeks away, and we still have yet to reach the apex of the outbreak. New Jersey Governor Phil Murphy has been insinuating for days that the deadline for New Jersey will be extended as well, but he refused to make an official decision on the matter. As a result, Murphy has faced heavy criticism from stressed New Jerseyans.
The issue was that New Jersey operates on a July 1st to June 30th fiscal year, and the tax payments the state usually receives by April 15th are necessary to pay for its operations. So if these payments don't come in until the summer, New Jersey's budget would be in disarray.
Well, earlier today, Governor Murphy finally issued a formal statement declaring that the deadline for New Jersey tax returns have been pushed back to July 15th to match that of the federal government's. In a joint statement with the Senate president and Assembly speaker, the governor said, "The ongoing COVID-19 pandemic has caused hardships, financial strain, and disruptions for many New Jerseyans and New Jersey businesses. As part of our response, we have reached agreement that the state income tax filing deadline and the corporation business tax filing deadline will be extended from April 15th to July 15th.” As part of the announcement, Murphy also stated that the state's fiscal year would be extended to September 30th to accommodate for the delayed income.
This announcement is a relief for many in New Jersey. Since most businesses are now closed, many residents suddenly find themselves unemployed. Plus, the number of people who have contracted the Coronavirus in New Jersey and the resulting death toll continues to grow. With so much going, one of the last things that any of us want to have to worry about are our taxes.
