Official COVID-19 (Coronavirus) and extension thread

[KBCPA1]

NOTE: comment being made prior to any software changes by TT re: extended due date and payment date of July 15, 2020.

Below is from TT info on the new tax filing and payment date of July 15. I read on a NYS CPA Society blog where a contributor said he actually spoke to IRS. He said IRS said that the payment can also made on the IRS.gov website using the MAKE A PAYMENT link. I looked at the link and it is very user friendly - allows payments for Form 1040 for years 2019 and prior and presumably on any date you chose. You do have to verify certain prior year tax information Clearly an alternative to mailing in the payment. And it shouldn't matter that you "trick" TT noting payment will be made by mail. 

PS: I'd rather pay IRS directly than deal with TT if a payment is not posted. Though I've never had that issue.

How do I change my payment date?
You have until July 15 to file your federal return and pay your income taxes this year since the tax filing deadline has been extended.
If you haven’t filed your federal taxes with TurboTax yet Select Pay by check as your payment method and mail it in before July 15, 2020.

[bx]

Many colleges have closed dorms due to COVID-19 for the balance of the Spring 2020 semester and may be refunding  a portion of room and board.  If the room/board were billed in 2019 (for Spring 2020)  paid with a 529 plan in 2019, but the credit is issued in 2020, how is that handled? 

[danoffl]

Hi I am an F-1 student and I have to physically mail my fed and state return and I owe $5 to the state. Does this tax date extension apply to me as well? Do I have time until July 15 to send my tax returns and the check? Thanks!

[DoninGA · Accepted solution]

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@danoffl wrote:

Hi I am an F-1 student and I have to physically mail my fed and state return and I owe $5 to the state. Does this tax date extension apply to me as well? Do I have time until July 15 to send my tax returns and the check? Thanks!

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It depends on your state.  Many states have not made a decision to move the date to match the federal dates.

See this TurboTax blog post for information - https://blog.turbotax.intuit.com/tax-news/is-the-tax-deadline-delayed-what-to-know-about-coronavirus...

[Critter · Accepted solution]

Really $5 ???  You can't just pay by 4/15 to be on the safe side ?  You need an extra 3 months for just $5 ?

[jmathewsjr]

I have already filed and set up payment for taxes due for April 13.  I now want to delay that payment.  I understand that I need to do this on IRS site.  It seems that I need to have a "confirmation number" and then my SS number to access the area to change my payment.  Where do I find my "confirmation number"?  

Thank you in advance for your help.

[JA32779]

I already filed & paid my 2019 return / taxes, including a penalty for underpayment. Does the waiver of penalties due to Covid19 now entitle me to a refund of the penalty I already paid?  If so, how would I claim that refund?

[MsBuff]

If you have an amount due for tax year 2019, YES, you can set up your direct debit for July, no later than July  15th, without any interest or penalties.

[Opus 17]

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@JA32779 wrote:

I already filed & paid my 2019 return / taxes, including a penalty for underpayment. Does the waiver of penalties due to Covid19 now entitle me to a refund of the penalty I already paid?  If so, how would I claim that refund?

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The IRS has not released that information yet.  Remember that taxes are supposed to be pay-as-you go.  You are supposed to have sufficient withholding to cover your tax bill, and if you are making quarterly payments, your final payment is due January 15.  You can be assessed an underpayment penalty for underpaying during the year, even if you file on time and pay in full by April 15.

So at first glance, the ability to delay your April 15 payment until July, does not change any underpayment penalties due as a result of not paying enough into the system by January 15.  The IRS may address this at a later date.  

In general, if you overpay your taxes or your penalty, the IRS will notify you and either send a check automatically, or they will send you a letter offering a check or to apply the balance to next year.  I assume that procedure is still in place, whatever they eventually decide. 

[Opus 17]

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@MsBuff wrote:

If you have an amount due for tax year 2019, YES, you can set up your direct debit for July, no later than July  15th, without any interest or penalties.

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As far as we know, at this time the program will not allow a date after April 15. Until the program is updated, the only way to pay later is to select "pay by check" in turbotax and then either mail a check on your own or make an electronic payment on your own at www.irs.gov/payments.

Can you confirm of your own knowledge that Turbotax has already been updated to accept later payment dates?

[MsBuff]

I'm sorry Champ.  I should have clarified my answer.  I can not verify that Turbo tax has updated their software for the extended due date of the IRS.    I was speaking only on behalf of the official IRS filing date.

[Critter]

When   the TT program will be updated with the new filing/payment  deadline is unknown at this time ... if you wish to file NOW   and pay AFTER 4/15 then simply choose the MAIL IN PAYMENT option in the FILE tab and then pay the IRS online when you wish to do so at www.IRS.gov/payments.  

Check your state for their payment options and if they will also extend filing/paying like the feds are doing. 

[cbco7]

Would also like to know if TT will be updating Home & Business for the new changes, like the tax credits for small businesses and sole proprietorships, in time for the July 15 filing date?

[Critter]

Since the ink is still not dry this may take a while to happen .... sadly the IRS must FIRST write up the code and specs for the software developers to use, then they must be programmed and tested  and accepted by the IRS ... only then will the program show the changes ... this may take weeks to happen.  

The instructions for the payroll tax credits  (which TT doesn't do) will not affect the 2019 returns and are expected out sometime in the next week in time for the first quarter paperwork to be completed.  

[Verhayden]

My refund was taken in an Offset due to my Student Loans. My student loans are currently held with a collection agency. Is it true that up to 75% of offsets are being returned because of COVID-19? If yes, how do I go about initiating that?