Showing posts with label extension for filing tax return. Show all posts
Showing posts with label extension for filing tax return. Show all posts
Friday, April 9, 2010
Refunds & Extensions.
June,
If you file an extension and know you don't owe taxes to IRS, but are due for a refund, do you just file the extension?
Thanks.
Rita
That's correct, Rita.
-- June
Wednesday, August 12, 2009
October 15 is the Tax Return Filing Deadline
Hi June,
I have been a fan for years and have recommended your very informative book + website to several other artists too. You have very generously answered a question I had in the past and now I have another:
For the first time my husband and I filed for an extension this year [we're both artists with some W-2's as well as 1099's and other misc. income, despite which we estimate not owing any taxes]. We're using a new accountant this year and she says we have until Oct 15th to file but in your book you mention having to file another form to get approval for this "super" extension.
Have the rules changed since your book was written? I'm hoping we'll have everything ready to file by this Friday Aug 14th anyway but it would be nice not to have to worry about it.
Thanks so much for any clarification,
Jill R.
Hi Jill,
There have been two changes since Self-employed Tax Solutions was published. One change allows for the deduction of start-up costs more quickly than before, and the other is the elimination of the mid-way extension. Your accountant is correct. You now need file only one extension, Form 4868, before April 15 and you will have until October 15 to file your tax return. So you can take your time and proof your numbers.
Here's a couple of my posts with more info File an extension. It's the smart thing to do. and Receipts a mess? Don't know which way to turn and it's almost April 15th!
Please continue to tell you colleagues about all the information available to them -- here, on my site, and in my book. They need as much clear, accurate info as they can get.
Best,
June
I have been a fan for years and have recommended your very informative book + website to several other artists too. You have very generously answered a question I had in the past and now I have another:
For the first time my husband and I filed for an extension this year [we're both artists with some W-2's as well as 1099's and other misc. income, despite which we estimate not owing any taxes]. We're using a new accountant this year and she says we have until Oct 15th to file but in your book you mention having to file another form to get approval for this "super" extension.
Have the rules changed since your book was written? I'm hoping we'll have everything ready to file by this Friday Aug 14th anyway but it would be nice not to have to worry about it.
Thanks so much for any clarification,
Jill R.
Hi Jill,
There have been two changes since Self-employed Tax Solutions was published. One change allows for the deduction of start-up costs more quickly than before, and the other is the elimination of the mid-way extension. Your accountant is correct. You now need file only one extension, Form 4868, before April 15 and you will have until October 15 to file your tax return. So you can take your time and proof your numbers.
Here's a couple of my posts with more info File an extension. It's the smart thing to do. and Receipts a mess? Don't know which way to turn and it's almost April 15th!
Please continue to tell you colleagues about all the information available to them -- here, on my site, and in my book. They need as much clear, accurate info as they can get.
Best,
June
Monday, March 9, 2009
File an extension. It really is the smart thing to do.
June:
I saw your post on Turbo Tax, and I am now completely confused. I own a small web programming company (sole prop) LLC in Ohio, and I would usually use Turbo Tax… What do you recommend now? It’s such a late date, and I am sure most accountants are too busy for a new account.
Please let me know what you recommend!
Jeremy
Hello Jeremy,
First of all there is no need to rush. Read my post File an extension. It's the smart thing to do. If you file an extension you'll have until October 15 to file your tax return. That'll give you time to find a tax pro.
In the interim, learn as much as you can. Read my blog and the columns on my website. Be sure to check out my posts on finding the right tax pro.
Best, June
Friday, March 21, 2008
File an extension. It's the smart thing to do.
This post originally ran last April.
Tax deadline ... Relax ... File in October instead of in April
Your sister has a spring wedding planned and you’re the maid-of-honor. The April tax filing deadline is just around the corner, but there’s no time to think taxes right now.
Or…When you and Gail broke up last week, you left your tax records at her house. You’d prefer to let the storm pass before you stop by to pick up your things.
Or… The project you've been working on has taken so long that you haven’t found time even to look at your mail much less get your tax records together.
Will any of these reasons for filing late pass muster with the Internal Revenue Service? An unnecessary question, because you don’t need a reason to file your return after the April deadline. You can wait as late as October 15!
THE BENEFITS OF FILING AFTER APRIL 15
Ignore the old husbands’ tale that filing an extension triggers IRS computer screens to flash “Audit this return!” Not so. An extension gives you more time to collect and review your material. And, even if you have your return completed by the end of February, it’s better for you to hold that return for a little marination.
Here’s why: Most taxpayers think there is only one way to prepare a tax return. Tax pros know that income and deductions can be treated in a variety of ways. If your tax preparer understands the self-employed life, she is equipped to make choices to your tax advantage. And many of her choices for your 2007 return may depend upon your income and expenses in 2008. The later into 2008 the more you’ll know about 2008.For instance, a substantially higher income in 2008 than in 2007 may warrant a fuller deduction in 2008 for equipment purchased in 2007. Or, with a high 2007 income you may want to make a hefty contribution to your self-employed pension. If you don’t have the money right now to put into that pension, an extension gives you until October 2008 to come up with your 2007 pension contribution.Take your time and talk with your tax professional about creating a favorable tax scenario.
HOW DOES AN EXTENSION WORK?
Tax returns are due April 15. The IRS offers you an extension that gives you until October 15 to file your return. You may also need to file a state extension.
Be aware than an extension gives you more time to file your return – but does not give more time to pay your taxes. Your taxes for 2007 are due by April 15, 2008.
Automatic Extension Form 4868 must be filed by April 15. You can file online, by phone, or by mail. If you file an extension you have until October 15 to file your return.
To complete the extension, estimate your total tax liability for 2007 using tax returns of previous years as a guide. For instance, if you made 25% more in 2007 than in 2006, pay at least 25% more in taxes. If you made less, pay less. It’s best to overestimate the tax you’ll owe.
Pay the balance due or as much of it as you can. If you can’t pay the full balance due when filing your extension, or if you underestimate your tax liability, you will be charged penalty and interest on the amount owed when you file your return. Always file an extension, even if you cannot pay the full balance due.
And, come return filing time, if you still don’t have the money, don’t file your return late. File on time and you can pay your tax later. If you file your return late, in addition to any late payment penalties and interest you could also be hit with a late filing penalty.
Some anxious people rush to pay their income tax by taking cash advances on credit cards. That’s a foolish move. MasterCard and Visa finance charges are higher than Uncle Sam’s.
Federal extension form 4868 can be downloaded here.
You can get most state extensions on line. Search by your state name and the words "tax return extension."
Tax deadline ... Relax ... File in October instead of in April
Your sister has a spring wedding planned and you’re the maid-of-honor. The April tax filing deadline is just around the corner, but there’s no time to think taxes right now.
Or…When you and Gail broke up last week, you left your tax records at her house. You’d prefer to let the storm pass before you stop by to pick up your things.
Or… The project you've been working on has taken so long that you haven’t found time even to look at your mail much less get your tax records together.
Will any of these reasons for filing late pass muster with the Internal Revenue Service? An unnecessary question, because you don’t need a reason to file your return after the April deadline. You can wait as late as October 15!
THE BENEFITS OF FILING AFTER APRIL 15
Ignore the old husbands’ tale that filing an extension triggers IRS computer screens to flash “Audit this return!” Not so. An extension gives you more time to collect and review your material. And, even if you have your return completed by the end of February, it’s better for you to hold that return for a little marination.
Here’s why: Most taxpayers think there is only one way to prepare a tax return. Tax pros know that income and deductions can be treated in a variety of ways. If your tax preparer understands the self-employed life, she is equipped to make choices to your tax advantage. And many of her choices for your 2007 return may depend upon your income and expenses in 2008. The later into 2008 the more you’ll know about 2008.For instance, a substantially higher income in 2008 than in 2007 may warrant a fuller deduction in 2008 for equipment purchased in 2007. Or, with a high 2007 income you may want to make a hefty contribution to your self-employed pension. If you don’t have the money right now to put into that pension, an extension gives you until October 2008 to come up with your 2007 pension contribution.Take your time and talk with your tax professional about creating a favorable tax scenario.
HOW DOES AN EXTENSION WORK?
Tax returns are due April 15. The IRS offers you an extension that gives you until October 15 to file your return. You may also need to file a state extension.
Be aware than an extension gives you more time to file your return – but does not give more time to pay your taxes. Your taxes for 2007 are due by April 15, 2008.
Automatic Extension Form 4868 must be filed by April 15. You can file online, by phone, or by mail. If you file an extension you have until October 15 to file your return.
To complete the extension, estimate your total tax liability for 2007 using tax returns of previous years as a guide. For instance, if you made 25% more in 2007 than in 2006, pay at least 25% more in taxes. If you made less, pay less. It’s best to overestimate the tax you’ll owe.
Pay the balance due or as much of it as you can. If you can’t pay the full balance due when filing your extension, or if you underestimate your tax liability, you will be charged penalty and interest on the amount owed when you file your return. Always file an extension, even if you cannot pay the full balance due.
And, come return filing time, if you still don’t have the money, don’t file your return late. File on time and you can pay your tax later. If you file your return late, in addition to any late payment penalties and interest you could also be hit with a late filing penalty.
Some anxious people rush to pay their income tax by taking cash advances on credit cards. That’s a foolish move. MasterCard and Visa finance charges are higher than Uncle Sam’s.
Federal extension form 4868 can be downloaded here.
You can get most state extensions on line. Search by your state name and the words "tax return extension."
Wednesday, September 19, 2007
Tax Return Filing Deadline: October 15
Hi June,
Is there another extension after Oct 15?
Melvin from Houston
So sorry, Melvin. There is not. That is why my readers haven't heard from me in a while ... been working on tax returns.
Please note that if you are going to get a refund there should be no problem if you miss the October 15 deadline.
Best,
June
Is there another extension after Oct 15?
Melvin from Houston
So sorry, Melvin. There is not. That is why my readers haven't heard from me in a while ... been working on tax returns.
Please note that if you are going to get a refund there should be no problem if you miss the October 15 deadline.
Best,
June
Wednesday, April 4, 2007
Tax deadline ... Relax ... File in October instead of in April
Your sister has a spring wedding planned and you’re the maid-of-honor. The April tax filing deadline is just around the corner, but there’s no time to think taxes right now.
Or…When you and Gail broke up last week, you left your tax records at her house. You’d prefer to let the storm pass before you stop by to pick up your things.
Or… The project you’ve been working on has taken so long that you haven’t found time even to look at your mail much less get your tax records together.
Will any of these reasons for filing late pass muster with the Internal Revenue Service? An unnecessary question, because you don’t need a reason to file your return after the April deadline. You can wait as late as October 15!
THE BENEFITS OF FILING AFTER APRIL 15
Ignore the old husbands’ tale that filing an extension triggers IRS computer screens to flash “Audit this return!” Not so. An extension gives you more time to collect and review your material. And, even if you have your return completed by the end of February, it’s better for you to hold that return for a little marination.
Here’s why: Most taxpayers think there is only one way to prepare a tax return. Tax pros know that income and deductions can be treated in a variety of ways. If your tax preparer understands the self-employed life, she is equipped to make choices to your tax advantage. And many of her choices for your 2007 return may depend upon your income and expenses in 2008. The later into 2008 the more you’ll know about 2008.For instance, a substantially higher income in 2008 than in 2007 may warrant a fuller deduction in 2008 for equipment purchased in 2007. Or, with a high 2007 income you may want to make a hefty contribution to your self-employed pension. If you don’t have the money right now to put into that pension, an extension gives you until October 2008 to come up with your 2007 pension contribution.Take your time and talk with your tax professional about creating a favorable tax scenario.
HOW DOES AN EXTENSION WORK?
Tax returns are due April 15. The IRS offers you an extension that gives you until October 15 to file your return. You may also need to file a state extension.
Be aware than an extension gives you more time to file your return – but does not give more time to pay your taxes. Your taxes for 2007 are due by April 15, 2008.
Automatic Extension Form 4868 must be filed by April 15. You can file online, by phone, or by mail. If you file an extension you have until October 15 to file your return.
To complete the extension, estimate your total tax liability for 2007 using tax returns of previous years as a guide. For instance, if you made 25% more in 2007 than in 2006, pay at least 25% more in taxes. If you made less, pay less. It’s best to overestimate the tax you’ll owe.
Pay the balance due or as much of it as you can. If you can’t pay the full balance due when filing your extension, or if you underestimate your tax liability, you will be charged penalty and interest on the amount owed when you file your return. Always file an extension, even if you cannot pay the full balance due.
And, come return filing time, if you still don’t have the money, don’t file your return late. File on time and you can pay your tax later. If you file your return late, in addition to any late payment penalties and interest you could also be hit with a late filing penalty.
Some anxious people rush to pay their income tax by taking cash advances on credit cards. That’s a foolish move. MasterCard and Visa finance charges are higher than Uncle Sam’s.
Federal extension form 4868 can be downloaded here.
You can get most state extensions on line. Search by your state name and the words "tax return extension."
Or…When you and Gail broke up last week, you left your tax records at her house. You’d prefer to let the storm pass before you stop by to pick up your things.
Or… The project you’ve been working on has taken so long that you haven’t found time even to look at your mail much less get your tax records together.
Will any of these reasons for filing late pass muster with the Internal Revenue Service? An unnecessary question, because you don’t need a reason to file your return after the April deadline. You can wait as late as October 15!
THE BENEFITS OF FILING AFTER APRIL 15
Ignore the old husbands’ tale that filing an extension triggers IRS computer screens to flash “Audit this return!” Not so. An extension gives you more time to collect and review your material. And, even if you have your return completed by the end of February, it’s better for you to hold that return for a little marination.
Here’s why: Most taxpayers think there is only one way to prepare a tax return. Tax pros know that income and deductions can be treated in a variety of ways. If your tax preparer understands the self-employed life, she is equipped to make choices to your tax advantage. And many of her choices for your 2007 return may depend upon your income and expenses in 2008. The later into 2008 the more you’ll know about 2008.For instance, a substantially higher income in 2008 than in 2007 may warrant a fuller deduction in 2008 for equipment purchased in 2007. Or, with a high 2007 income you may want to make a hefty contribution to your self-employed pension. If you don’t have the money right now to put into that pension, an extension gives you until October 2008 to come up with your 2007 pension contribution.Take your time and talk with your tax professional about creating a favorable tax scenario.
HOW DOES AN EXTENSION WORK?
Tax returns are due April 15. The IRS offers you an extension that gives you until October 15 to file your return. You may also need to file a state extension.
Be aware than an extension gives you more time to file your return – but does not give more time to pay your taxes. Your taxes for 2007 are due by April 15, 2008.
Automatic Extension Form 4868 must be filed by April 15. You can file online, by phone, or by mail. If you file an extension you have until October 15 to file your return.
To complete the extension, estimate your total tax liability for 2007 using tax returns of previous years as a guide. For instance, if you made 25% more in 2007 than in 2006, pay at least 25% more in taxes. If you made less, pay less. It’s best to overestimate the tax you’ll owe.
Pay the balance due or as much of it as you can. If you can’t pay the full balance due when filing your extension, or if you underestimate your tax liability, you will be charged penalty and interest on the amount owed when you file your return. Always file an extension, even if you cannot pay the full balance due.
And, come return filing time, if you still don’t have the money, don’t file your return late. File on time and you can pay your tax later. If you file your return late, in addition to any late payment penalties and interest you could also be hit with a late filing penalty.
Some anxious people rush to pay their income tax by taking cash advances on credit cards. That’s a foolish move. MasterCard and Visa finance charges are higher than Uncle Sam’s.
Federal extension form 4868 can be downloaded here.
You can get most state extensions on line. Search by your state name and the words "tax return extension."
Wednesday, March 14, 2007
Receipts a mess? Don't know which way to turn and it's almost April 15th!
June,
I am in a bind and don't know where to turn. We have purchased your book, Self-employed Tax Solutions , but don't have the time to fully read and figure everything out before we have to turn in our taxes.
I've tried to put all of our expenses into QuickBooks so we can turn over our information to an accountant to do our taxes, but have only ended up with a royal mess and a lot of frustration and tears.
Like your book says, we have a big bucket of receipts...and I don't know what to do now. I don't know where to turn and I don't know who to trust to help us maximize our deductions and make sure we don't get audited. Are you taking clients? How much would you charge to help us sort out our information and help us file our taxes? Or conversely, is there someone you would recommend that we could use locally in the Raleigh, NC area?
Any help would be greatly appreciated.
Thank you, Emily
Hello Emily,
First: Slow down. You do not have to file your return by the April deadline. You might want to read Extensions: Relax ... there's no need to file by April 15th on my website at http://www.junewalkeronline.com/index.asp?sPG=43 .
In the Most Simple System section of my book there is a complete explanation of keeping records manually. It tells you what to do -- simply and easily -- with your "bucket of receipts."
So, if possible get rid of Quickbooks. I don't like the program. It is too difficult. If you want to do your recordkeeping on computer, rather than manually, then use Quicken.
FOUR STEPS, available from my site as a PDF, will walk you through the setup of Quicken for an indie business. But don't go to FOUR STEPS or any recordkeeping method until you've had time to read my book. [Note added April 15, 2011: Four Steps is currently out of print.]
Next, you can never be sure that you won't be audited. What you can be sure of is that you'll be prepared for an audit if it were to happen. Self-employed Tax Solutions tells you how to do that.
Yes, I am taking a few new clients. And I have several in NC. I'll send you a separate email on how I work with new clients, but first, take your time and think about what I've written here. There is no need to panic or worry. It'll just take some time and patience and some reading on your part, to get to the next step.
How's that sound?
Best regards,
June Walker
Tuesday, March 13, 2007
A Photographer's Tax Return
I normally don't go into this much detail answering a question that comes in from my blog, but the complexity of this photographer's situation and her plea for help pushed me to do so.
Here's the question from Gwyneth in North Carolina:
Oh man. I lived in 2 states last year, and I think I have about 4 or 5 W-2s. Additionally, I did independent contractor photography work for another photographer. I was paid in both check and once in equipment. She has not given me a 1099 form. I have definitely spent far more on equipment and start-up costs than I made.
*** Do I file two different forms to the IRS?
*** My camera was purchased before I ever used it to earn money with...can I still deduct that?
*** Can I spread out my start-up costs? (website, cameras, computer equipment, etc, etc.) Or would they all be deducted for the year the money was actually spent?
*** What about cell phones? My cell phone is my only phone, so of course I use it for business AND personal calls. (this goes for my computer, clothing I bought expressly to wear while working, but that I also wear other times, etc.)
In the end, I definitely didn't make any money w/ my freelance work. I know I still need to file, and I want to do it right, but I certainly cannot pay a well-qualified tax preparer...I don't even have any of the money I made anymore. I poured it all back into equipment...and then some.
I apologize for asking so many questions. I'm sure you've answered a lot of them in various articles. I've read tons of your posts, and I find them so helpful.
Thank you!
Gwyn
Hello Gwyn,
Good Golly! You cannot file your own return. Because of the complexity of your situation I can tell by your questions that you don't know enough to do it on your own and do it correctly.
This is what I think you need to do. There are two major parts to the whole tax preparation event. The first part is the task of putting everything together properly, aka, recordkeeping. The other part is the tax preparation itself. Your part will be to get it the information together in an orderly fashion. That will take a bunch of your time and effort and patience.
Then take your records to a tax preparation franchise. Someone there will do a much better job than you can, and although they are not cheap the fee won't be in the thousands of dollars.
Here's two reasons to relax and just look at this as a chore that must be done:
Since you have more expenses than income you'll likely owe no tax.
And, you have a lot of time to do this. You need to file an extension. Read Extensions: Relax ... there's no need to file by April 15th on my website at http://www.junewalkeronline.com/index.asp?sPG=43 . An extension will give you until October 15, 2007 to file your return
To answer your specific questions:
1. You file one IRS 1040 tax return but there are many forms that are part of it.
2. You must separate both income and expenses into two areas: W-2 and self-employed.
[The equipment you were paid with is both income and expense.]
3. Your camera can be business expense. Its cost is its value on your first day of business.
4, Depending on the cost and kind of start-up costs they may be deducted all at once or over a period of time.
[The tax preparer will know how to handle that.]
5. You may deduct a business portion of cell phone and computer.
6. Street clothes are not deductible.
7. All the above will need to be divided by the number of days you lived in each state.
I cannot explain a recordkeeping system in an email or post. In the Most Simple System section of my book, Self-employed Tax Solutions, you can learn how to put your records together, simply and easily. The book costs about $13 on Amazon. If you choose, you could certainly read it and put your records together in time for the October deadline. You'd learn a lot and save yourself a lot of stress and time and money!
All this should put you on the right track.
Best regards,
June Walker
Here's the question from Gwyneth in North Carolina:
Oh man. I lived in 2 states last year, and I think I have about 4 or 5 W-2s. Additionally, I did independent contractor photography work for another photographer. I was paid in both check and once in equipment. She has not given me a 1099 form. I have definitely spent far more on equipment and start-up costs than I made.
*** Do I file two different forms to the IRS?
*** My camera was purchased before I ever used it to earn money with...can I still deduct that?
*** Can I spread out my start-up costs? (website, cameras, computer equipment, etc, etc.) Or would they all be deducted for the year the money was actually spent?
*** What about cell phones? My cell phone is my only phone, so of course I use it for business AND personal calls. (this goes for my computer, clothing I bought expressly to wear while working, but that I also wear other times, etc.)
In the end, I definitely didn't make any money w/ my freelance work. I know I still need to file, and I want to do it right, but I certainly cannot pay a well-qualified tax preparer...I don't even have any of the money I made anymore. I poured it all back into equipment...and then some.
I apologize for asking so many questions. I'm sure you've answered a lot of them in various articles. I've read tons of your posts, and I find them so helpful.
Thank you!
Gwyn
Hello Gwyn,
Good Golly! You cannot file your own return. Because of the complexity of your situation I can tell by your questions that you don't know enough to do it on your own and do it correctly.
This is what I think you need to do. There are two major parts to the whole tax preparation event. The first part is the task of putting everything together properly, aka, recordkeeping. The other part is the tax preparation itself. Your part will be to get it the information together in an orderly fashion. That will take a bunch of your time and effort and patience.
Then take your records to a tax preparation franchise. Someone there will do a much better job than you can, and although they are not cheap the fee won't be in the thousands of dollars.
Here's two reasons to relax and just look at this as a chore that must be done:
Since you have more expenses than income you'll likely owe no tax.
And, you have a lot of time to do this. You need to file an extension. Read Extensions: Relax ... there's no need to file by April 15th on my website at http://www.junewalkeronline.com/index.asp?sPG=43 . An extension will give you until October 15, 2007 to file your return
To answer your specific questions:
1. You file one IRS 1040 tax return but there are many forms that are part of it.
2. You must separate both income and expenses into two areas: W-2 and self-employed.
[The equipment you were paid with is both income and expense.]
3. Your camera can be business expense. Its cost is its value on your first day of business.
4, Depending on the cost and kind of start-up costs they may be deducted all at once or over a period of time.
[The tax preparer will know how to handle that.]
5. You may deduct a business portion of cell phone and computer.
6. Street clothes are not deductible.
7. All the above will need to be divided by the number of days you lived in each state.
I cannot explain a recordkeeping system in an email or post. In the Most Simple System section of my book, Self-employed Tax Solutions, you can learn how to put your records together, simply and easily. The book costs about $13 on Amazon. If you choose, you could certainly read it and put your records together in time for the October deadline. You'd learn a lot and save yourself a lot of stress and time and money!
All this should put you on the right track.
Best regards,
June Walker
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