2nd Stimulus Check and Late Tax Filing

Home Fairmark Forum Other Tax Topics 2nd Stimulus Check and Late Tax Filing

Viewing 9 posts - 1 through 9 (of 9 total)
  • Author
    Posts
  • #7960
    JustWondering
    Participant

    In 2018, my income (married filing jointly) was under $150k. In 2019, my income was over $200k but since I filed an extension, I received a stimulus check based on my 2018 income. I have still not filed for 2019 and have enough estimated taxes to be due a refund. Given the upheaval in DC, should I delay filing my 2019 return since I won’t have a penalty anyway since I have already paid enough? If a new stimulus is issued based on the old rules, my 2019 return would make me ineligible so the way I see it, I have nothing to lose and a lot to gain filing past the extension deadline. Would love advice on this.

    #7961
    kaneohe
    Participant

    What do you have to gain by filing later?

    from BH:

    by MarkNYC » Sat Oct 10, 2020 10:50 pm

    kaneohe wrote: ↑Sat Oct 10, 2020 7:44 pm
    grabiner wrote: ↑Sat Oct 10, 2020 7:00 pm
    ………………………………. (There is a minimum $435 penalty for a return filed more than 60 days late, though; ………………………………………
    Is this true if the tax due was low? Most things I have read compare several things and take the lesser of the 2 as penalty……..Thanks for clarifying.

    When the tax return is filed more than 60 days late, the minimum penalty for late-filing is the lesser of: (1) $435 or (2) the actual tax amount required to be shown on the tax return (not just the unpaid tax amount).

    #7962
    kaneohe
    Participant

    I am not sure of what the real situation is. The quote below is more typical of what I have seen. Due to the uncertainty you need to weigh
    your possible gain vs the loss if you and I are wrong.

    “If you file more than 60 days after the due date, the minimum penalty is $435 (for tax returns required to be filed in 2020) or 100% of your unpaid tax, whichever is less”

    #7963
    kaneohe
    Participant

    found the source for MarkNYC answer above:

    https://www.irs.gov/faqs/irs-procedures/collection-procedural-questions/collection-procedural-questions-3

    “If your return was over 60 days late, the minimum failure-to-file penalty is the smaller of $435 (for tax returns required to be filed in 2020) or 100% of the tax required to be shown on the return.”

    #7964
    JustWondering
    Participant

    Thanks for your replies and the IRS link. So if I am due a refund, then I could theoretically get 60 more days to file with no penalty. Does that make sense? If there is another stimulus, then I would come out ahead? The upside is that I might get the stimulus based on my 2018 income and not have to pay it back.

    #7968
    kaneohe
    Participant

    Aren’t you past the 60 days now? 7/15 plus 60 days = 9/15?
    Forgot you filed for extension so more time I guess.

    • This reply was modified 11 months, 1 week ago by kaneohe.
    #7973
    JustWondering
    Participant

    The extension is 6 months from April 15th. The question is do I get another 60 days penalty free if I’ve already paid what I owe?

    #7974
    kaneohe
    Participant

    just my guess (be sure to check and re-read the penalty stuff)…….seems like you might have those extra 60 days but don’t go over or that MarkNYC answer might come into play . Where are you seeing news of another stimulus?

    #7975
    JustWondering
    Participant

    The news about another “bi-partisan” stimulus is everywhere, but the news stories talk about it being tied up in the politics of the presidential election. I’m thinking it could happen regardless of the outcome of the election since the items that are stalling the bill have more to do with whether there will be a standalone stimulus package (Trump and the Republicans want) or an omnibus stimulus (Pelosi and the Senate Democrats have been pushing for other aid to be included as well). Both seem to be say they want to include direct payments, but neither want to give an advantage to the other in the upcoming election. I’m not commenting on the merits of either side (that is way beyond the scope of this thread and my question), just that both seem to be supporting additional direct payments as part of their respective proposals so once the election is over, they may be more inclined to compromise.

Viewing 9 posts - 1 through 9 (of 9 total)
  • You must be logged in to reply to this topic.