Extended tax date and IRA contributions

[pumpkin]

I'm hearing that the tax filing deadline has been pushed out to July 15th.

My taxes have been filed, so I'm good there, but does that also mean that I have until 7/15 to get my IRA contribution in too?

TIA

[ohgillian]

I think this is up in the air at this point and I haven't seen any tax analysts saying definitively one way or another. The IRS statement delaying the filing deadline didn't address it, but it's worth noting that you can generally make contributions up until the filing date. Here's what IRS Pub 590-A says about the due date (this hasn't been modified since the recent tax date change:

"Contributions must be made by due date. Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2019 must be made by April 15, 2020." page 10: www.irs.gov/pub/irs-pdf/p590a.pdf

So I think the question is whether the government is considering the shift from April til July an "extension." I have a feeling you'll be able to do it until July, but it's a gray area. Just my 2¢.

[pumpkin]

Mar 21, 2020 17:00:42 GMT -5 ohgillian said:

I think this is up in the air at this point and I haven't seen any tax analysts saying definitively one way or another. The IRS statement delaying the filing deadline didn't address it, but it's worth noting that you can generally make contributions up until the filing date. Here's what IRS Pub 590-A says about the due date (this hasn't been modified since the recent tax date change:

"Contributions must be made by due date. Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2019 must be made by April 15, 2020." page 10: www.irs.gov/pub/irs-pdf/p590a.pdf

So I think the question is whether the government is considering the shift from April til July an "extension." I have a feeling you'll be able to do it until July, but it's a gray area. Just my 2¢.

Thanks!
I appreciate your detailed answer and perspective.

And as a federal employee who deals with federal regs and policies every day I fully appreciate the "is this an extension" aspect as I debate such things daily! lol

[ohgillian]

Mar 21, 2020 17:12:10 GMT -5 pumpkin said:

Mar 21, 2020 17:00:42 GMT -5 ohgillian said:

I think this is up in the air at this point and I haven't seen any tax analysts saying definitively one way or another. The IRS statement delaying the filing deadline didn't address it, but it's worth noting that you can generally make contributions up until the filing date. Here's what IRS Pub 590-A says about the due date (this hasn't been modified since the recent tax date change:

"Contributions must be made by due date. Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2019 must be made by April 15, 2020." page 10: www.irs.gov/pub/irs-pdf/p590a.pdf

So I think the question is whether the government is considering the shift from April til July an "extension." I have a feeling you'll be able to do it until July, but it's a gray area. Just my 2¢.

Thanks!
I appreciate your detailed answer and perspective.

And as a federal employee who deals with federal regs and policies every day I fully appreciate the "is this an extension" aspect as I debate such things daily! lol

Right! "When is an extension not an extension?"   

[boiler717]

I’m wondering when 2019 estimated payments need to be made by. My husband messed up withholdings when he switched jobs, and we owe an underpayment penalty. Can we make a few thousand in a Q4 estimated payment to help?

[kadams767]

Mar 22, 2020 6:33:01 GMT -5 boiler717 said:

I’m wondering when 2019 estimated payments need to be made by. My husband messed up withholdings when he switched jobs, and we owe an underpayment penalty. Can we make a few thousand in a Q4 estimated payment to help?

Maybe I am misunderstanding your question, but 2019 estimates were already all due.  The last quarterly estimated payment date was January 15th.  Estimated payments for a particular year are made in April, June, September and then the next January.  The estimated payment (would normally be) due on April 15th is for 2020.

[boiler717]

Mar 22, 2020 7:09:08 GMT -5 kadams767 said:

Mar 22, 2020 6:33:01 GMT -5 boiler717 said:

I’m wondering when 2019 estimated payments need to be made by. My husband messed up withholdings when he switched jobs, and we owe an underpayment penalty. Can we make a few thousand in a Q4 estimated payment to help?

Maybe I am misunderstanding your question, but 2019 estimates were already all due.  The last quarterly estimated payment date was January 15th.  Estimated payments for a particular year are made in April, June, September and then the next January.  The estimated payment (would normally be) due on April 15th is for 2020.

Ahh I thought I had until March 31! My bad. We will just have to pay underpayment penalty.

[kadams767]

Mar 22, 2020 11:42:47 GMT -5 boiler717 said:

Mar 22, 2020 7:09:08 GMT -5 kadams767 said:

Maybe I am misunderstanding your question, but 2019 estimates were already all due.  The last quarterly estimated payment date was January 15th.  Estimated payments for a particular year are made in April, June, September and then the next January.  The estimated payment (would normally be) due on April 15th is for 2020.

Ahh I thought I had until March 31! My bad. We will just have to pay underpayment penalty.

Yea, unfortunately with estimates, April 15th is usually a double whammy because you get to pay any balance you owe from the prior year plus the first estimate for the current year.  

I think the only “extension” from the January last estimate date is if you can somehow file and pay your full amount owed by either Feb. 1st or 15th (not sure which, since I’ve never come close to that date).

[ohgillian]

pumpkin , the IRS has now answered definitively that IRA contributions may be delayed also and still count for 2019. See Q17 here:

www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers

[pumpkin]

Mar 24, 2020 14:54:28 GMT -5 ohgillian said:

pumpkin , the IRS has now answered definitively that IRA contributions may be delayed also and still count for 2019. See Q17 here:

www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers

Thank you!