Too late to overpay 2020 tax to get $5k paper I bonds?

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Topic Author
need403bhelp
Posts: 1210
Joined: Thu May 28, 2015 6:25 pm

Too late to overpay 2020 tax to get $5k paper I bonds?

Post by need403bhelp »

Thanks for your past help!

I usually overpay taxes with Form 4868 yearly to get $5k paper I bonds. This year, IRS extended tax deadline to June 15 for our state due to unusual winter storm. I'm looking to file Form 4868 now, but it appears it is too late to do so for 2020 tax year.

Is there any way to overpay my tax liability at this point and request $5k paper I bonds with refund? Or did I make a mistake and now it is too late?

Thanks!
SnowBog
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Joined: Fri Dec 21, 2018 11:21 pm

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by SnowBog »

If your state was delayed...

I'd think you still file an extension, including an overpayment of $5000+... (At least that's how I'd do it...)

Then you can file a return for the refund as I Bonds.

Since your payment was received prior to your filing date, and your return is filed in time (especially with the extension), I'd think that works just fine...
Topic Author
need403bhelp
Posts: 1210
Joined: Thu May 28, 2015 6:25 pm

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by need403bhelp »

SnowBog wrote: Wed Jun 09, 2021 7:55 pm If your state was delayed...

I'd think you still file an extension, including an overpayment of $5000+... (At least that's how I'd do it...)

Then you can file a return for the refund as I Bonds.

Since your payment was received prior to your filing date, and your return is filed in time (especially with the extension), I'd think that works just fine...
Ok, fair enough, Googling I think you may be right that I can still file a form 4868...

However, it appears I have to SNAIL MAIL said form with my over-payment, is this correct?

I know my parents' snail mailed tax return last year took a year to be processed, will a snail mailed form 4868 be faster?
SnowBog
Posts: 1386
Joined: Fri Dec 21, 2018 11:21 pm

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by SnowBog »

Personally, I'd try one of the free online extensions first... I used TurboTax: https://easy-extension.turbotax.intuit. ... l&state=us

Although, from the looks of it, seems like mail only at this point: https://www.irs.gov/forms-pubs/extensio ... tax-return
Victims in FEMA Disaster Areas: Mail Your Request for an Extension of Time to File
To request an extension to file your federal taxes after May 17, 2021, print and mail Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. We can’t process extension requests filed electronically after May 17, 2021.
I ended up having to mail my return this year, I expect to be waiting a long time to get my refund... Hopefully, they'll still send the I Bonds!
mrsgoldilocks
Posts: 29
Joined: Mon Jun 07, 2021 9:15 pm

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by mrsgoldilocks »

need403bhelp wrote: Wed Jun 09, 2021 7:09 pm Thanks for your past help!

I usually overpay taxes with Form 4868 yearly to get $5k paper I bonds. This year, IRS extended tax deadline to June 15 for our state due to unusual winter storm. I'm looking to file Form 4868 now, but it appears it is too late to do so for 2020 tax year.

Is there any way to overpay my tax liability at this point and request $5k paper I bonds with refund? Or did I make a mistake and now it is too late?

Thanks!
May i ask why do you want to get paper I bonds? Isn't easily to purchase and manage the electronic I bonds on line?
BrokerageZelda
Posts: 91
Joined: Sat Apr 10, 2021 10:39 am

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by BrokerageZelda »

need403bhelp wrote: Wed Jun 09, 2021 8:15 pm
SnowBog wrote: Wed Jun 09, 2021 7:55 pm If your state was delayed...

I'd think you still file an extension, including an overpayment of $5000+... (At least that's how I'd do it...)

Then you can file a return for the refund as I Bonds.

Since your payment was received prior to your filing date, and your return is filed in time (especially with the extension), I'd think that works just fine...
Ok, fair enough, Googling I think you may be right that I can still file a form 4868...

However, it appears I have to SNAIL MAIL said form with my over-payment, is this correct?

I know my parents' snail mailed tax return last year took a year to be processed, will a snail mailed form 4868 be faster?
The paper form 4868 is only one of the ways the IRS accepts extension requests with pre-payment.

https://www.irs.gov/forms-pubs/extensio ... tax-return

I just checked the IRS Direct Pay website (which is where I would have asked you to go next), but it looks like the option to file an extension for 2020 taxes is no longer in the menu; I'm guessing they discontinued it after the national deadline of May 17.

If you feel strongly enough, you could try to call the IRS to see if they'll give you an extension on filing the extension due to the special extension of the filing deadline, but otherwise I can't think of anything else to do, if you don't want to snail mail it. (Saw this was addressed above.)
Last edited by BrokerageZelda on Wed Jun 09, 2021 8:55 pm, edited 2 times in total.
SnowBog
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Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by SnowBog »

mrsgoldilocks wrote: Wed Jun 09, 2021 8:27 pm May i ask why do you want to get paper I bonds? Isn't easily to purchase and manage the electronic I bonds on line?
Presumably, because $5k paper bonds as part of a tax refund are in addition to the $10k electronic limit, bringing the total to $15k (or $25k for MFJ).
mrsgoldilocks
Posts: 29
Joined: Mon Jun 07, 2021 9:15 pm

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by mrsgoldilocks »

SnowBog wrote: Wed Jun 09, 2021 8:31 pm
mrsgoldilocks wrote: Wed Jun 09, 2021 8:27 pm May i ask why do you want to get paper I bonds? Isn't easily to purchase and manage the electronic I bonds on line?
Presumably, because $5k paper bonds as part of a tax refund are in addition to the $10k electronic limit, bringing the total to $15k (or $25k for MFJ).
Got it. 2021 is the first year I get into I bond, so there are things I don't know.
investmax
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Joined: Thu Mar 11, 2021 8:00 pm

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by investmax »

mrsgoldilocks wrote: Wed Jun 09, 2021 8:27 pm
May i ask why do you want to get paper I bonds? Isn't easily to purchase and manage the electronic I bonds on line?
There is a cap of $10K per person rather per SSN per year to purchase electronic I-Bonds. This is a legal loophole to purchase up to 5K extra I-Bonds per year.
Thesaints
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Joined: Tue Jun 20, 2017 12:25 am

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by Thesaints »

BrokerageZelda wrote: Wed Jun 09, 2021 8:30 pm The paper form 4868 is only one of the ways the IRS accepts extension requests with pre-payment.
That's not really true. I paid electronically on May 14th. Any payment automatically includes a request for extension.
What is true is that in the pull-down menu the "Extension" option is gone.
Probably a software "feature" since for most the deadline was May 15th.
BrokerageZelda
Posts: 91
Joined: Sat Apr 10, 2021 10:39 am

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by BrokerageZelda »

Thesaints wrote: Wed Jun 09, 2021 10:33 pm
BrokerageZelda wrote: Wed Jun 09, 2021 8:30 pm The paper form 4868 is only one of the ways the IRS accepts extension requests with pre-payment.
That's not really true. I paid electronically on May 14th. Any payment automatically includes a request for extension.
What is true is that in the pull-down menu the "Extension" option is gone.
Probably a software "feature" since for most the deadline was May 15th.
Please reread what I said - "only one of the ways" means that there are other ways, including filing electronically for an extension on IRS Direct Pay instead of mailing a paper form. I missed the quoted notice from the IRS the first time around, which explains why a paper form 4868 is required for people requesting extensions after Direct Pay electronic applications were cut off on May 17th.
Topic Author
need403bhelp
Posts: 1210
Joined: Thu May 28, 2015 6:25 pm

Re: Too late to overpay 2020 tax to get $5k paper I bonds?

Post by need403bhelp »

Thesaints wrote: Wed Jun 09, 2021 10:33 pm
BrokerageZelda wrote: Wed Jun 09, 2021 8:30 pm The paper form 4868 is only one of the ways the IRS accepts extension requests with pre-payment.
That's not really true. I paid electronically on May 14th. Any payment automatically includes a request for extension.
What is true is that in the pull-down menu the "Extension" option is gone.
Probably a software "feature" since for most the deadline was May 15th.
So, unfortunately, the IRS really does seem to require a paper form 4868 to file for an extension after May 17th, at least per https://www.irs.gov/businesses/small-bu ... er-victims :

Mail Your Request for an Extension of Time to File
To request an extension to file your federal taxes after May 17, 2021, print and mail Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. We can’t process extension requests filed electronically after May 17, 2021.

Find out where to mail your form.
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