Turbo Tax appears not to take into account deferral of tax payment date for Virginia in 2020

[wizestep]

Virginia moved the date for tax payments from 5/1/2020 to 6/1/2020 and said that there would be no penalty if payments were made by June 1.  I made my first estimated tax payment on June 1.  Turbo Tax is calculating a penalty.

[KathrynG3]

Yes, you are correct. Virginia did extend the due date for the first and second quarters estimated tax payments of 2020. Virginia will waive the penalty if you meet the other requirements for payments. See below for a further explanation.

Virginia did not update 2020 Form 760ES Instructions, see page 1, or 2020 Form 760 Instructions regarding due dates for when to file estimated payments.

• These dates are still in effect for 2021, 2021 Form 760ES Instructions, see page 1.
• These instructions state the estimated income tax payments must be made in full on or before May 1, or in equal installments on or before 5/1, 6/15, 9/15, and 1/15. 

Regarding the waiver:

See this excerpt from Virginia Tax Penalty and Interest Updates and Overview:

Virginia Tax Penalty and Interest Updates

Payment Extension and Penalty Waiver Pursuant to Tax Bulletin 20-4

• In response to the COVID-19 crisis, the due date for individual, corporate, and fiduciary income tax payments otherwise due in April or May 2020 is extended to June 1, 2020.
• Penalties will be waived on final payments made by June 1, provided at least 90% of the tax is paid.
• Penalties will also be waived for estimated payments otherwise due in April or May that are paid in full by June 1.
• If the required payment is not submitted by June 1, the penalty waiver will not apply and penalties will accrue from the original payment due date.
• The filing deadlines remain May 1 for individuals and April 15 for most corporations.
  
  ...and also:
• For taxpayers who do not pay by June 1, but make full payment with their return by the extended due date, the lower 2% extension penalty applies instead of the higher 6% late payment penalty.

In TurboTax, Virginia estimated payments are reported here:

• Form the left menu, select Federal.
• Select Deductions & Credits, second tab from the left.
• Scroll down when all tax breaks are opened to Estimates and Other Taxes Paid and click Show More.
• Select Income Taxes Paid and click Start.
• Select State estimated taxes for 2020 and Revisit to confirm the date was entered as paid.