Here’s what to do if you miss the tax deadline

Tim Speiss, EisnerAmper Partner, joins Yahoo Finance Live to discuss last minute tax tips and the impact of COVID-19 on taxes.

Video transcript

KRISTIN MYERS: Today is the last day to file your taxes. That is, of course, unless you got an extension. So we've got some last minute tax tips and more. We are joined now by Tim Speiss partner at the accounting firm EisnerAmper.

Tim, so let's just start. Today is the last day that you can file your taxes. What are some of those last-minute tax tips that people can take advantage of before that deadline tonight?

TIM SPEISS: Well, first off, today is the actual deferred due date. So you want to file today. You can file for an extension, by the way, which many of our clients are doing. And you'll have a valid extension in place as long as you pay 90%-- we actually suggest a little bit more, just to be safe harbor-- 90% of your liability paid in today.

Then moving forward on the schedule, we're looking at-- which we can speak about-- but estimated payments throughout the year. Some of your viewers made a April 15 payment last month. That was for the first quarter. The interesting thing about that was that it was not the same date the tax returns were due. So you know, the tension there was you literally had to have your 2020 tax return in fairly good shape to know what an estimate might be.

So from there, we now move on to June, and then ultimately filing at October 15.

KRISTIN MYERS: So I want to ask you, Tim, before getting into some of those dates that we've got coming up. It occurred to me that this really is the year that-- or right now, as we're filing these taxes that it's now taking an accounting of the pandemic year. And that was a period of time where so many people moved. They left their homes. They decided to go to their vacation homes or went back home to their parents.

How have things changed, do you think, in terms of the way people were filing their taxes, especially around that point of residency, for example, in their tax returns?

TIM SPEISS: Well, it's a great question. And a matter of fact, before this call and after this, I'm going to be back speaking with a client. They spent a significant amount of time in another state, in New Hampshire. And we've been working with them because they actually triggered a tax reporting in New Hampshire, because of what you just said. They were there during COVID, sheltering. And while we speak to them throughout the year, they purposely knew what they were doing. But they were there more than 183 days. So even though their formal residence is not there, New Hampshire-- they're New York residents-- they triggered a New Hampshire tax filing requirement, which we're helping them with today.

KRISTIN MYERS: So now speaking about those dates that are upcoming, because as I was mentioning to you in the break, I had forgotten a little bit that I needed to be filing my taxes for today until very recently. And I know I'm not alone, or at least I'm hoping I'm not alone. I'm saying that to make myself feel a little bit better. But there's a lot of dates that are upcoming that people really need to be paying attention to, because the schedule is a little bit different this year. Can you just quickly run through them and what folks need to really be paying attention for?

TIM SPEISS: Right. So today is when federal extensions are due, May 17, and also pay attention to your state jurisdictions, because they could have a different date. But generally speaking, most states will also follow this federal due date of May 17. And then next month, we have a June 15 payment date. That is the second quarter estimated tax payment for the year. That's a traditional date. Thereafter, we have the September 15, for the third quarter, and then January 15 of 2022 for the fourth quarter payments.

So it's going to look like any other tax year calendar after today. It should, at least, unless there's any changes. So you're going to want to follow that, the quarterly payments that I just cited, for September, and then for January, once we get through June next month.

KRISTIN MYERS: And Tim, I want to just very quickly ask you, I think this year so many people, because they had so much more discretionary income, were looking to invest. And one area that a lot of folks were investing in were. Cryptocurrencies how should folks be approaching that on their taxes?

TIM SPEISS: Well, that is reportable. We have many relationships that have been for many years, whether it's Bitcoin or something else, cryptocurrencies. Gains are taxable. Losses are deemed to be deductible. So if you are investing and trading, that is something that you want to take into consideration for your tax filing.

I would say the first time we saw it become rather prevalent was probably in 2017, we started to see that. And if you are trading in that, you really want your tax advisor to know. Because not only do you want to report the income, but if you have any losses that you can claim, that also is something you'd want to take advantage of.

KRISTIN MYERS: All right. Tim Speiss, partner at the accounting firm EisnerAmper. Thanks so much for joining us today.