The IRS has once again extended the tax filing and payment deadlines in most parts of California due to destruction caused by landslides, mudslides, and severe storms. Now those Californians have until October 16th to file, as opposed to the previously announced May 15th date.

The IRS has extended the fourth quarter 2022 estimated tax payment deadline to October 16th. The 2023 estimated tax payments due on April 18th, June 15th, and September 15th, as well as the quarterly payroll and excise tax returns due on January 31st, April 30th, and July 31st, have also been delayed until October 16th. No contact or extension paperwork is necessary to take advantage of the extended time. If taxpayers receive penalty notifications within the postponed period, they should contact the number provided for the penalty to be waived.

The recently enacted American Rescue Plan Act (ARPA) may help reduce health insurance costs for millions of Americans in 2021. The law expands the Premium Tax Credit from the Affordable Care Act, which can reduce the cost of insurance premiums. Some taxpayers who did not previously qualify for the credit are now eligible, while many current recipients will see an increase in their credit amount this year.

In order to claim the Premium Tax Credit, you must purchase health insurance through the ACA Insurance Marketplace, sometimes called the Exchange. You can access the Marketplace by visiting healthcare.gov. The new rules will enable many Americans to improve their health insurance plan, lower their premiums or both. To give people time to explore options, the 2021 ACA Special Enrollment Period (SEP) has been extended through August 15.

Ordinarily, the SEP is only available for people who experience a qualifying life event (such as a job change) or do not currently have insurance. However, the extended 2021 SEP also allows those who are already insured through the Marketplace to explore new coverage options.

The U.S. Department of Health and Human Services estimates that about one in four current ACA enrollees will benefit from shopping for a new plan. They may be able to get more comprehensive coverage for the same premiums they currently pay, or pay significantly lower premiums for their current level of coverage.

A professional tax advisor can help you determine whether you qualify for the Premium Tax Credit. If so, comparing insurance plans during the 2021 SEP could bring you substantial savings, or the peace of mind offered by more complete coverage.