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Maryland State Income Tax Filing Deadline Extended to July 15

Maryland Comptroller Peter Franchot announced today that he is extending the state income tax filing deadline by three months until July 15, 2021. No interest or penalties will be assessed if returns are filed and taxes owed are paid by the new deadline.

The extension, which applies to individual, pass-through, fiduciary and corporate income tax returns, including first and second quarter estimated payments, is due to recent and pending legislation at the state and federal levels that impact 2020 tax filings and provide economic relief for taxpayers harmed by the COVID-19 pandemic.

In Maryland, passage of the RELIEF Act in February required extensive revisions to previously released forms and software programs used by tax filers and tax software vendors. Legislative veto overrides that took place later than usual prompted additional changes. At the federal level, the passage of a third stimulus package this week necessitates more changes to federal and state forms even as the traditional April 15 tax filing deadline approaches.

“We’ve never before seen so many changes to the current year’s tax code in the midst of the tax filing season,” Comptroller Franchot said. “We’re realistic about the burden this puts on taxpayers, tax preparers and our staff, which is why I’m taking this emergency action to extend the tax filing deadline to July 15.”

As of now, the Internal Revenue Service has kept the federal filing and payment deadline at April 15. We will update this post if the IRS makes any adjustments.

Taxpayers who already have filed their state returns and are awaiting the revision of forms to amend their taxes to take advantage of an Unemployment Insurance subtraction should remain patient. The third federal stimulus bill provides additional Unemployment Insurance (“UI”) tax benefits, which requires more updates to both state and federal forms. Taxpayers who intend to take advantage of the UI subtractions are advised to wait until April 15, when all state forms will be ready with federal and state legislative changes.

“I know many Marylanders are eager to take advantage of these relief programs that will put more money back in their pocket and our agency is working as fast as possible to make the necessary changes,” Comptroller Franchot said. “Our goal is to streamline this process so taxpayers don’t have to file multiple amendments as a result of further federal changes.”

Comptroller Franchot noted that revisions to tax forms usually take several months and occur before the start of tax season. The multiple extensive changes in the midst of the tax season is unprecedented, he noted.

Additionally, Comptroller Franchot is extending the due date of the Tobacco Floor Tax payment from June 13, 2021 to July 15, 2021.

Further, due to changes included in the RELIEF Act and the veto override of House Bill 932 from the 2020 session, the deadline for Sales and Use Tax returns also has been revised. Any SUT returns for sales taking place in March, April and May of 2021 will now be due on July 15, 2021.

Affected tax filers will automatically receive this extension and no interest or penalties will be assessed if returns are filed and taxes owed are paid by July 15.

 

Source: Comptroller of Maryland Tax Alert 03-11-2021 - Extension of Time to File and Waiver of Interest and Penalty for Certain Filers

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