How Does Coronavirus (COVID-19) Relief and the Tax Year 2019 Tax Deadline Extension Affect My Tax Payments?

This content is for the first coronavirus relief package, The Coronavirus Aid, Relief and Economic Security Act (The CARES Act), which was signed into law in March 2020. For information on the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, the second coronavirus relief package signed into law on December 27, 2020, please visit the “New Coronavirus Relief Package: What Does it Mean for You and a Second Stimulus Check” blog post.

In response to Coronavirus (COVID-19), the Treasury and IRS have announced that the 2019 federal tax filing deadline has been extended to July 15, 2020 – including an extension to pay.

The Treasury and IRS also recently announced that taxpayers can defer tax year 2019 federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment also applies to tax year 2020 first and second quarter estimated tax payment previously due on April 15 and June 15.

Deferment of federal tax payments means that if you owe money on your federal taxes you will get more time to pay what you owe. You do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. We’ve summed up what this deadline extension specifically means for tax payments below. 

Who is eligible for payment deferment?

All taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax are eligible for the extended payments deadline.

Will I receive penalties or interest if I pay after April 15?

You will not receive penalties or interest from the IRS, as long as you pay your federal taxes by July 15, 2020. Interest and penalties will begin to be charged after July 15th. 

It’s important to note that that your state tax filing or payment deadlines may be different. Hawaii, Idaho, Iowa, Mississippi, and Virginia have different tax filing and payment deadlines. Additionally, North Carolina and Virginia have extended the tax filing and payment deadlines but will charge interest on any taxes owed paid after April 15, 2020. Click here for the latest information on state-by-state deadline changes. 

How do I reschedule my payment to July 15, 2020?

• If you scheduled a payment through IRS Direct Pay, you can use your confirmation number from the payment to access the Look Up a Payment feature. You can modify or cancel a scheduled payment until two business days before the payment date. The email notification you received when you scheduled the payment will contain the confirmation number.
• If you scheduled a payment through Electronic Federal Tax Payment System (EFTPS), click on Payments from the EFTPS home page, log in, then click Cancel a Tax Payment from the left menu and follow the instructions. You must do so at least two business days before the scheduled payment date.
• If you scheduled a payment as part of filing your tax return (authorizing an electronic funds withdrawal), you may revoke (cancel) your payment by contacting the U.S. Treasury Financial Agent at 888-353-4537. You must call to make a payment cancellation request no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
• If you scheduled a payment by credit card or debit card, contact the card processor to cancel the card payment.

What does this mean for self-employed quarterly estimated tax payments?

The deadline for first and second quarter 2020 estimated income tax payments have been extended to July 15, 2020.  

Self-employed individuals can visit our Self-Employed Coronavirus Relief Center to get up-to-date information, tax advice and tools to help you understand what coronavirus relief means for you. 

Do I have to wait to file, if I don’t want to pay until July 15?

No, you can file your taxes now and schedule your payment for any date up until July 15.

We’ve Got You Covered

TurboTax has you covered with the most up-to-date information regarding new legislation and tax filing changes and announcements in response to Coronavirus (COVID-19). If you have questions when you sit down to do your taxes, you can connect live via one-way video from the comfort of home to a TurboTax Live CPA or Enrolled Agent with an average 15 years experience to get your tax questions answered. TurboTax Live CPAs and Enrolled Agents are available in English and Spanish, year round and can even review, sign and file your tax return.

You can find the latest information on the tax changes and announcements in response to COVID-19, here.