VA Filing Deadline - IRA

[Burke]

It appears VA filing deadline will stay at 6/1/20 (per Gov Northram's press conference today) so I need to know this:  Client wants to make IRA contribution and deduct  for 2019.  He is waiting until July to determine his income this year as to how much he can afford.  He wants to do $7K if he can and deduct full amount.  Since VA is not extending to that date, I am assuming he has to make the deposit by June 1 to claim it on the state return.   He can do $5K now, so I am thinking do it, and if he can come up with another $2K in July to put on the federal, that will mean the AGI will not conform to the VA return!  I think I can unlink VA from the federal to file it, so would this mean he would have problems down the road? 

[Hahn1040]

Just make an extension payment for VA.  Use worst case for what he might owe.

then in July file both together when he has it figured out

If he has overpaid, apply it to 2020 or get a refund

[TAXMAN]

After reading the post I am wondering if tp puts down a state extension and then July decides to fund @7k will VA allow since not put in before 6-01. I believe so. VA starts with aGI and I did not see any modifications concerning IRA's when fed is finally filed. Maybe Gail will weigh in.

[Gail in Virginia]

I don't have a good answer.  Virginia complied with federal tax law as of December 31 except for items they did not comply with.  Making IRA deposits after April 15 was not federal tax law as of December 31.  So they don't have to comply with it.  But will the General Assembly actually address this?  Who knows.  Technically, VA returns are still due May 1, with an automatic extension of time to file until November1.  The governor has stated penalties will not be charged for the month of May to give people until June 1 to pay, but he did not have the power to waive interest due for May.  The assembly may address that when they meet for the veto session later this month.  They may not. 

If asked before April 15, I would have advised making the IRA payment on time to be safe.  If asked now, they have until July 15 for federal, and can take their chance with Virginia because I don't know which way this is going to go.  If the assembly does nothing, it may be ignored by taxation and just use the July 15 date.  Ain't life in the pandemic fun?

[Burke]

On ‎4‎/‎15‎/‎2020 at 9:29 PM, TAXMAN said:

After reading the post I am wondering if tp puts down a state extension and then July decides to fund @7k will VA allow since not put in before 6-01. I believe so. VA starts with aGI and I did not see any modifications concerning IRA's when fed is finally filed. Maybe Gail will weigh in.

That is EXACTLY my conundrum here.