When I file my return in October from an extension, do I include the federal and state taxes I paid in April?

[dkshipe]

Where do I put those payments?  Under the federal and state estimated tax payments?

[DoninGA · Accepted solution]

If you used the TurboTax Easy Extension to electronically file the extension request, Form 4868, and make the tax payment with the request, the payment should already entered on your tax return. Provided you used the same user ID for the 2022 online tax return as was used for the Easy Extension. You can check to see if the amount is on your tax return by clicking on Tax Tools on the left side of the screen. Then click on Tools. Click on View Tax Summary. Then click on Preview my 1040.

The federal extension payment will be shown on Schedule 3 Line 10. The amount from Schedule 3 Part II Line 15 flows to Form 1040 Line 31

To enter, change or delete a payment made with an extension request (Federal, State, Local) -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Estimates and Other Taxes Paid
On Income Taxes Paid, click on the start or update button

On the next screen select the type of extension payment made and click on the start or update button

Or enter federal extension payment in the Search box located in the upper right of the program screen. Click on Jump to federal extension payment

[PJK_00]

Yes, add them as estimated payments.

I sometimes make an estimated payment in the exact amount of taxes due on the date of filing. Interestingly that has sometimes even saved a few dollars since a delayed payment would have accrued additional interest.

[Critter-3]

@PJK_00 

They are not estimates ... payments made with the extension to on a different line on the tax return so they need to  be entered as extension payments for both the fed & states. If you lump them in with estimated payments on the wrong line the IRS computer will not see them correctly causing an IRS notice. 

[PJK_00]

Actually, it appears that the IRS doesn't really care based on my previous experience with this. It keeps a running tab of all your payments by designated tax year and when they were made to compute any interest.

When you file an extension you by definition do not quite know the exact amount you'll owe so you typically estimate to overpay a little bit anyway.

I recall, I got sick of filling out and filing this extra extension payment voucher (I seem to recall it had to be mailed somewhere else so more postage and nonsense to keep track of) and just kept making an additional - well-calculated - estimated payment. I have attached Form 4868 - take a look at Part II lines 4, 5, 6,7.

Basically, you estimate such that the payments match or exceed what you might owe, then the balance due becomes 0 and the amount you are paying also becomes 0 and no need to deal with extra payment vouchers.

Of course, one can do it differently and select 'Extension' in eftps.gov - but in the end all the IRS cares is that there are at least as many funds in your account as to what is owed for that tax year.

 

On a related note: usually, I get a refund these days due to multiple variable investments, but in previous years when I owed, I would go into TT at the time of actual filing (not extension), enter an estimated payment for the exact amount of taxes owed, get a reduction of $1-2 at that time and got a congratulation from TT for exactly balancing the owed tax to $0.

I would then go into the eftps.gov online payment system, make an estimated payment for the relevant tax year for the exact amount of taxes owed and file the return with $0 owed and $0 refund.