The New Mexico Taxation and Revenue Department announced it will extend the deadline for filing and paying 2020 New Mexico Personal Income Taxes until May 17, 2021 in accordance with the federal extension announced this week.
The temporary Gross Receipts Tax relief authorized by Senate Bill 1 allows many restaurants, bars, breweries and similar businesses a Gross Receipts Tax deduction for sales of prepared food and drinks made after March 1, 2021 and prior to July 1, 2021.
The tax relief is intended to help businesses that have been especially hard hit financially during the COVID-19 pandemic.
During the four-month period that the deduction is available, eligible businesses may choose either to not charge Gross Receipts Tax on the deductible receipts, or to charge the tax but keep the amount charged.
Fast food restaurants are not eligible for the deduction, but mobile food services do qualify.
More information, including how the deduction will be claimed, is available on the Forms & Publications page of tax.newmexico.gov.
The New Mexico Taxation and Revenue Department has begun issuing $600 rebates for certain eligible recipients of the Working Families Tax Credit. The rebates were authorized by the Legislature earlier this year and signed into law by Gov. Michelle Lujan Grisham.
The one-time rebates are available to taxpayers who are not dependents, who receive the Working Families Tax Credit, and who have an adjusted gross income of $31,200 or less (single filers) or $39,000 (married filing jointly, heads of household).
Taxpayers who have already filed their 2020 New Mexico Personal Income Tax returns and are eligible for the $600 rebate do not need to take further action. The $600 rebate will be mailed to them or delivered by direct deposit if they selected that option when they filed their 2020 tax return.
The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.
Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until October 15 to file their 2020 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.
The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.
This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.
The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax.
If you qualify for a 2020 Economic Stimulus Payment (EIP), also known as the individual payment from the COVID relief bill, but have not received it yet, make sure to claim your Recovery Rebate Credit on your 2020 tax return.
Visit the Internal Revenue Service website for more information. Link: https://www.irs.gov/newsroom/recovery-rebate-credit