Solved: My fed tax due was > 20k. I filed an extension and paid 20k. I went back to finish my return it says I only owe $200. Why does turbo deduct the $ i paid for the extension
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

My fed tax due was > 20k. I filed an extension and paid 20k. I went back to finish my return it says I only owe $200. Why does turbo deduct the $ i paid for the extension

 
1 Best answer

Accepted Solutions
Employee Writer

My fed tax due was > 20k. I filed an extension and paid 20k. I went back to finish my return it says I only owe $200. Why does turbo deduct the $ i paid for the extension

When you pay with your extension, you are paying off part of your taxes. Not just promising to pay, but paying.

So if your taxes owed for 2018 is $20,200 and you paid $20,000 with your extension, TurboTax "remembers" that and deducts the $20K from the total owed amount, thus you now only owe the remaining $200 when you file your taxes.

If it didn't account for the $20K payment and you forgot that you already paid, you'd be in danger of paying another $20K when you file your actual return.

View solution in original post

1 Reply
Employee Writer

My fed tax due was > 20k. I filed an extension and paid 20k. I went back to finish my return it says I only owe $200. Why does turbo deduct the $ i paid for the extension

When you pay with your extension, you are paying off part of your taxes. Not just promising to pay, but paying.

So if your taxes owed for 2018 is $20,200 and you paid $20,000 with your extension, TurboTax "remembers" that and deducts the $20K from the total owed amount, thus you now only owe the remaining $200 when you file your taxes.

If it didn't account for the $20K payment and you forgot that you already paid, you'd be in danger of paying another $20K when you file your actual return.

View solution in original post

Dynamic Ads
v
Privacy Settings