I don't think it would be that extreme. I'm not sure when the deferral would end, but basically it would mean the taxes you would have been paying anyway would be owed at some point.
So if the deferral is for 2020 taxes, that means that you're basically getting a loan from the fed on your taxes until April. So if you would have paid 10k in taxes from now until Dec 31, that amount would be due when the deferral ends.
Perhaps there might be some sort of payment plan you can do on the deferral so you're not stuck with a huge tax bill come April. If there isn't, you would likely see everyone's refunds evaporating in April and potentially many people owing some money back to the fed.
Most savvy people would take the deferral and invest the money elsewhere for a bigger return and then just pay at tax time. But that type of micromanagement isn't for everyone.
I don't think it would be that extreme. I'm not sure when the deferral would end, but basically it would mean the taxes you would have been paying anyway would be owed at some point.
So if the deferral is for 2020 taxes, that means that you're basically getting a loan from the fed on your taxes until April. So if you would have paid 10k in taxes from now until Dec 31, that amount would be due when the deferral ends.
Perhaps there might be some sort of payment plan you can do on the deferral so you're not stuck with a huge tax bill come April. If there isn't, you would likely see everyone's refunds evaporating in April and potentially many people owing some money back to the fed.
Most savvy people would take the deferral and invest the money elsewhere for a bigger return and then just pay at tax time. But that type of micromanagement isn't for everyone.