Tax Day isn’t April 15 this year. Here’s what to know about filing in North Carolina

April 15 is usually Tax Day — but not this year.

The federal government and at least three dozen states, including North Carolina, opted to extend the deadline for filing and paying individual income taxes because of the coronavirus pandemic. The new deadline is May 17.

“In order for taxpayers to have more time to navigate the tax changes during this pandemic, North Carolina will mirror the IRS change as much as possible under current state law,” N.C. Department of Revenue Secretary Ronald G. Penny said in March.

Everyone qualifies, meaning taxpayers don’t need to apply for the extension, according to the Internal Revenue Service.

What does the new deadline mean?

Individuals living in North Carolina have until May 17 to file and pay their state and federal income taxes.

The extension has been automatically applied, and there won’t be any penalties for people who file their taxes after April 15 as long as they submit on or before May 17, according to the N.C. Department of Revenue.

What doesn’t apply?

The extended deadline doesn’t apply to trust taxes in North Carolina. That means sales and use taxes, withholding taxes or estimated tax payments are still due April 15.

Sales and use tax refers to the percentage taxed on the price of a sale, according to the blog Tax Jar. It applies to people who sell goods, provide taxable services and rent or lease property in North Carolina, among others, according to the state Department of Revenue.

Withholding taxes are taken out of an individual’s paycheck by their employer, according to Investopedia.

Estimated taxes are for people who pay their taxes quarterly, such as self-employed individuals, retirees, investors, businesses and corporations, the IRS says.

Can you apply for another extension?

People who need more time to file their federal tax returns can request an extension until Oct. 15 using a Form 4868, according to the IRS.

In North Carolina, the Department of Revenue allows individuals to file a Form D-410 before the original deadline for a six-month extension.

What is the benefit of filing early?

Delaying the tax deadline is likely to give freelancers and small businesses more time to raise money they might owe, according to U.S. News & World Report.

But the IRS still asks that people expecting a refund or who haven’t gotten their stimulus checks file sooner.

“Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds,” IRS Commissioner Chuck Rettig said in March. “Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

Can unemployment benefits be taxed?

Yes. Unemployment benefits received during the coronavirus pandemic can be taxed — including the $600 a week some people received under the Coronavirus Aid, Relief, and Economic Security Act.

However, a recent change in the law allows you to exempt up to $10,200 of unemployment compensation from federal taxes, The Wall Street Journal reported. Anyone with an adjusted gross income of less than $150,000 is eligible. The exemption does not apply to state taxes in North Carolina.

The IRS has a tool to help individuals know what unemployed income will be taxed. It’s called “Are Payments I Receive for Being Unemployed Taxable” and takes an estimated 10 minutes to complete, according to the IRS.

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