New Jersey has finally pushed its tax day to July 15 because of the coronavirus crisis, giving you 90 more days to file and pay your state income taxes.
The announcement catches the state up to the IRS, which announced the three-month extension on March 20 as part of its response to the coronavirus economic crisis.
The original April 15 deadline is just two weeks away, and tax professionals had urged Gov. Phil Murphy to act quickly and match the federal schedule. Until now, New Jersey was the lone holdout among states that levy a personal income tax.
“The ongoing COVID-19 pandemic has caused hardships, financial strain, and disruptions for many New Jerseyans and New Jersey businesses," Murphy said in a joint statement with the Senate president and Assembly speaker. “As part of our response, we have reached agreement that the state income tax filing deadline and the corporation business tax filing deadline will be extended from April 15th to July 15th.”
The federal tax extension had created a challenge for New Jersey, which operates on a July 1 to June 30 fiscal year and relies on April tax payments to pay its bills.
Murphy made the new filing and payment deadline official Wednesday morning as part of an announcement that the state would extend the current fiscal year until Sept. 30.
Under the new IRS tax deadlines, individuals can defer up to $1 million in income tax payments until July 15 without facing penalties or interest and corporations can defer up to $10 million in payments.
The state U.S. Treasury Department said that delay should “will result in about $300 billion of additional liquidity in the economy in the near term.”
The IRS has continued to urge taxpayers who are expecting refunds to file quickly, noting that most refunds will go out within three weeks.