Broker Check

“Show Me Some Love, States” – FAQs for State and Local Tax Relief

| April 01, 2020
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At the federal level, Congress passed federal tax relief and the stimulus bill called The Coronavirus Aid Relief and Economic Security (CARES) Act in response to the coronavirus (COVID-19) pandemic.

In my other blogs, I’ve covered the federal tax relief and certain CARES Act provisions. But, what about the state tax provisions? Are there other state assistance packages?

Most states and localities are matching the federal tax relief. Some states are having their own assistance packages from grace periods for mortgage payments to eviction relief to their own small business aid. I would urge you to check your state and local government websites. Most governors have been front and center – I think their humility is threatened with their daily broadcast updates and the high interest in them – and have a website devoted to COVID-19 assistance. 

It’s beyond the scope of this brief blog and your attention span to focus on all states where we help clients. So, I’ll just focus on Kentucky for now.

 

  1. Did Kentucky adopt the same federal filing deadlines for individuals?

Yes, the 2019 Kentucky income tax return filing deadline has been extended from April 15 to July 15, 2020.

 

  1. What is so good about this filing relief?
  • Late filing penalties on 2019 Kentucky income returns filed by July 15, 2020 will be waived.
  • Deferral of Kentucky income tax payments due to July 15, 2020.
  • Income tax payments deferred to July 15, 2020. No penalties or interest will be applied.

 

  1. Is everything the same as federal?

Almost.  As the time of this writing, it is not clear if Kentucky estimated tax payments for 2020 that are due on April 15, 2020 are extended to July 15 like federal estimated tax payments were.

  

  1. What about local license fee returns for businesses?

Many localities are extending the deadlines to match the federal. For example, the City of Paducah and McCracken County have extended the filing and payment dates of its license fee returns to July 15, 2020.

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