State income tax deadline extended because of changes to code

Maryland residents have three extra months to file state income taxes this year because of coronavirus pandemic-related changes to the tax code.

State Comptroller Peter Franchot said Thursday that he is extending the filing deadline to July 15 because recent and pending state and federal COVID-19 relief legislation also affects 2020 tax filings.

That means if returns are filed and taxes owed are paid by the new deadline, no interest or penalties will be assessed.

The state’s passage of the RELIEF Act in February required extensive revisions to previously released forms and software programs used by filers and software vendors, the comptroller said. And at the federal level, the passage of a third stimulus package this week will mean more changes are needed on both federal and state forms. The Internal Revenue Service has kept its filing and payment deadline at April 15.

“We’ve never before seen so many changes to the current year’s tax code in the midst of the tax filing season,” 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.”

The state’s extension applies to individual filers, as well as pass-through, fiduciary and corporate income tax returns, including first- and second-quarter estimated payments.

Franchot urged patience from those taxpayers who already filed state returns and need revised forms to amend their taxes. He said the revised forms will allow taxpayers to take advantage of an unemployment insurance subtraction that was approved as part of the federal stimulus bill. State forms with the federal and state legislative changes should be ready by April 15.

Multiple extensive changes in the midst of the tax season is unprecedented, Franchot said.

Franchot also extended the due date of the Tobacco Floor Tax payment from June 13 to July 15. Tobacco inventory must be taken after the close of business March 13.

And due to changes in the state RELIEF Act, the deadline for sales and use tax returns also has been revised. Any returns for sales taking place in March, April and May will now be due July 15.