California Filer - Extension for 2022

[SerranoSin]

I'm located in Santa Clara County, California. For the 2022 Tax Year we were given automatic Federal and State Extensions.  Do we need to do anything special to file our taxes now the Oct 15 due date is coming?  Do we need to check any special boxes in our Turbotax filings?

[Bend371]

I have same question - live in Orange County, California.

[marctu · Accepted solution]

@ SerranoSin thank you for the question.  On February 24, 2023, the IRS extended the May 15, 2023 tax deadline to October 16, 2023, for most of California.  See: IRS Press Release .  The California FTB also extended the tax deadline on March 10, 2023.  See: California FTB Press Release

So, you asked, in part, is there anything special?  The answer is No.  The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief.  There is also nothing you need to do within Turbo Tax

All the best,

Marc T.

TurboTax Live Select Time Tax Expert

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[SerranoSin]

Just to confirm, there is/was no action to request for the Extension for CA FTB or IRS. Assuming I owed money, no payment was due either. 

With the coming due date of October 16, I just need to submit my tax returns (and pay any taxes due) as normal using TurboTax for state and federal filings? 

Thank you again for your response. 

[chia]

Also, just to confirm that we don't need file an extension (form 4868 to get confirmation for extension) before 4/18.  Correct?  I can jus  go ahead efile my tax return now.   

Thanks.

[marctu]

@chia Thank you for your follow up question.  If you did file an extension on or before April 18, 2023, and were in one of the impacted California counties then there was no harm in doing so.  You just did not need to as the IRS waived doing so.  Typically,  you can only file an extension on or before the tax deadline, which is typically April 15th of each year.  

All the best,

Marc T.

TurboTax Live Select Time Tax Expert

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[gmeinc2004]

What if we file after Oct 16 for fed and Calif tax returns? What will the penalties be?

[marctu]

@gmeinc2004 thank you for your follow up question.   So the penalties are as follows:

• The Failure to File Penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won't exceed 25% of your unpaid taxes.
• If both a Failure to File and a Failure to Pay Penalty are applied in the same month, the Failure to File Penalty is reduced by the amount of the Failure to Pay Penalty for that month, for a combined penalty of 5% for each month or part of a month that your return was late.
• If after 5 months you still haven't paid, the Failure to File Penalty will max out, but the Failure to Pay Penalty continues until the tax is paid, up to its maximum of 25% of the unpaid tax as of the due date.
• If your return was over 60 days late, the minimum Failure to File Penalty is $435 (for tax returns required to be filed in 2020, 2021 and 2022) or 100% of the tax required to be shown on the return, whichever is less.
• If your return was over 60 days late, the minimum Failure to File Penalty is $450, for tax returns required to be filed in 2023, or 100% of the tax required to be shown on the return, whichever is less.

Interest on a Penalty

The IRS also  charges interest on penalties.

The date from which we begin to charge interest varies by the type of penalty. Interest increases the amount you owe until you pay your balance in full.  

All the best,

Marc T.

TurboTax Live Select Time Tax Expert

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[mbexpert]

Hello,

Yes it is true that California residents have an automatic extension until October 18 to file their federal and state taxes.

There are no special boxes you need to indicate in your return that you are filing by October 18.

Simply log into your Turbotax account and prepare your return as you would normally. If you need assistance, click on the "live help" icon and we have dedicated tax experts who will be happy to assist you with all your questions and ensure you are able to file by the tax deadline of October 18.

Have a great day and thank you for choosing Turbotax Live!

Mary, tax expert 10 years experience

[mbexpert]

To clarify the above message , the deadline is Monday October 16

[VolvoGirl]

IRS statement on California tax returns and payments extended to October 16, 2023

IRS announces tax relief for victims of severe winter storms, flooding, and mudslides in California ...

Updated IRS info

Around the nation — California | Internal Revenue Service

[XL SC]

I live in one of the California areas that qualify for an automatic extension but Turbo Tax calculated a penalty/interest on my tax return. Why is that? How can I get this money back I already filed my return.

[DoninGA]

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@XL SC wrote:

I live in one of the California areas that qualify for an automatic extension but Turbo Tax calculated a penalty/interest on my tax return. Why is that? How can I get this money back I already filed my return.

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The underpayment penalty reported on the IRS federal tax return Form 1040 Line 38 has nothing to do with the extension for California due to the federal declared disaster areas.

It is based on the federal tax payments you reported on the federal return for tax year 2022.  If you did not have enough federal tax payments in 2022 then you were assessed an underpayment penalty.

See this IRS Tax Topic for underpayment penalties - https://www.irs.gov/taxtopics/tc306

[Bend371]

Just to clarify, I was referring to the penalty on CA tax return (not federal) and the extension did apply to certain estimated payments as well (in CA at least). In any event and to follow-up in case anyone else had a similar question, the CA FTB credited the penalty when processing my return (based on the extension). Thanks.