Tax Year 2020: Procedure to file federal and state extension for 2020

[Critter-3]

@wearr19comcastnet 

Are you sure it was a late filing penalty or a late payment penalty or both ?   https://www.state.nj.us/treasury/taxation/pdf/current/630.pdf

 You must file this NJ-630 application if:
1. You are applying for an extension of time to file a New Jersey Income Tax return but you are not applying for a federal extension; or
2. You are applying for both a federal and a New Jersey extension and are required to remit payment to the New Jersey Division of Taxation by the original due date of the return in order to have at least 80% of your actual tax liability
(as calculated on your New Jersey Income Tax return when filed) paid.

You do not need to submit this NJ-630 application if:
1. You have paid at least 80% of your final tax liability by the original due date, and
2. You have applied for an automatic extension of time to file for federal purposes and you enclose a copy of the federal Application for Automatic Extension (if filed by paper) with the final New Jersey return when filed.

[massachusetts1]

I made Fed & State extensions for TY 2020 by May 15, 2021.  Massachusetts extension good to Oct 2021 (for 2020 return). I suppose I will be late since it is now Nov. 21, 2021 -- and for the portion since Oct. 15, 2021?  Is that correct?  [I have also paid most of estimates for 2020]

2nd question:  In the Mass. State return (and Federal return) I don't see where to enter that I did file extensions for Fed and State.  How does TurboTax 2020 know then what dates to compute any possible penalty or interest? (should be Oct., not May. Correct?)

(I think I saw that the State is charging a larger sum than I would have expected. )

Thank you!

[xmasbaby0]

@massachusetts1 

TurboTax is not going to calculate a late penalty or interest for you.   If you requested extensions for your federal and state returns then the IRS and your state already know that you have an extension.  You do not have to put it on the tax return form.   If you actually owe any sort of late fee or penalty you will be billed later by the IRS or state.

Your returns must be mailed.   E-filing is closed.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Federal and state returns must be in separate envelopes and they are mailed to different addresses.  Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.

[VolvoGirl]

@massachusetts1   Sorry the interest will be calculated from the original due date in May.   The extension is only to file the return.   Any tax due was still due by April 15 or May.  Did you enter the estimates paid and any payment you made with the extensions?

Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year.  The IRS will bill you for any interest and penalties depending on when they get the tax due payment.  

If Turbo Tax calculates a penalty you might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

[massachusetts1]

Thank you both for prompt replies.

I was printing out each return.  I do this and mail with tracking every year.

I was not aware to attach 1099's and I've been using Turbo Tax for years.

I've got 41 pages printed as it is. (then minus the cover pages and estimates)

So no entry for anything related to extension request.

And I guess I owe tax to each 2020 Fed and State.   Although last year (2019) I received a large sum returned from Fed. (after their review, I guess.)  Who knows, I may receive some back for 2020.

Thank you for all the instruction re: computation of penalty and attempting reduction.

Good holiday.

[VolvoGirl]

You only need to attach the 1099 if it shows withholding on it.  They usually don't unless it's a 1099R.

If you made any payments when you filed the extensions or as estimates payments do the amounts show up?  For 2020 Federal Extension payments should be on schedule 3 line 9.  And go to 1040 line 31.

For 2020 Federal Estimated payments should be on 1040 line 26.

What did the IRS change on your 2019 return?   They should have mailed a letter.  Did you forget to enter some payments you made?

[massachusetts1]

Thank you again!  Very good.

I only receive 1099 (no R).

I didn't submit a payment with the Extension Forms because I thought I already paid enough for 2020 at that point.  So no entry on line 31.

I do see the total Estimates are entered on the other line.

I received that refund of the 2019 Return just this summer 2021. 

I know IRS was very late processing 2019 returns.  And I haven't had a chance to review it.  But I would guess

also that it relates to another Estimate payment I made & didn't enter.   I usually pay at different dates during the year due to my self-employmt. income pattern.

It's been so busy during pandemic in my field of work.  And if I had time, I would have completed my

2020 Returns much sooner.  But it is curious.

Thank you again.

Massachusetts

[VolvoGirl]

FYI- there are many many kinds of 1099.  They all have letters after them.  If you are self employed you probably got 1099Misc or 1099NEC.  Then 1099G for unemployment or a state refund.  And of course 1099-Int & 1099-Div for interest and dividends.  1099B for investment sales.  And on and on.