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What exactly does this section mean? It asks "Did you make a payment with your 2020 or 2019 extension time to file your return?" This section would not allow me to click "NO" and had "YES" automatically checked. Upon clicking continue, took me to the next page where it then asked "How much of your 2020 federal taxed did you pay when you filed you tax extension?"
Does this extension mean the extra time the Government allowed to file taxes due to Covid in 2020?
Please explain this question as I have never seen this question before and apparently this was incorrect when I filed my 2020 taxes.
Thank you.
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If you were able to itemize deductions in the past or if you are close to itemizing your deductions, the amounts you paid in 2020 for your 2019 state and local taxes or extension payments could qualify as an itemized deduction.
Therefore, TurboTax will ask you to enter this information to ensure you receive any deductions you are entitled to you on your income tax return.
I have the same question, but this answer does not fully address the question.
Does this apply only if you requested an additional extension? I did not apply for an extension, but because both state and federal taxes deadlines were automatically extended due to Covid, I did file and pay after April 15th.
Does this mean I should click yes. Unlike the original poster, Turbo Tax does let me select "No."
Yes, This only applies if you requested an additional extension. If you had made a payment in anticipation of the taxes that you will owe on your 2020 taxes it is the payment made in 2021 for your 2020 tax return extension.
You are also correct in selecting "NO" if you did not make any payment with extension.
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