As we get down to the wire, lots of nice folks are going to need a very normal thing called a tax extension.
What is an extension?
If you are unable to properly file your taxes before the deadline, or would prefer to have more time, you file an extension. This will give you until October 15th. However, if you owe taxes, YOU MUST PAY BEFORE THE TAX DEADLINE REGARDLESS OF ANY EXTENSION. It’s an extension to file, not to pay.
What are the fees to file a tax extension?
It’s free. But, like I said…
If I file an extension, am I still required to pay?
Maybe.
If you owe money, you are still required to make the payment by the tax deadline. This will require that you make an estimate of your income, tax owed and expenses and pay up for what you are anticipating. If not much has changed in your finances, last year’s taxes are a good guess.
You’re going to owe this anyway so it’s not an extra fee.
What if I’m getting money back? Do I still need to file an extension?
Yep.
The IRS requires that you file an extension even if you are receiving money back.
Well, I think I need an extension, now what?
Awesome. Take a breath. This is a normal and adult thing you’re doing.
Figure out whether or not you are going to owe money. You probably already know this.
Here is the federal extension. It’s a PDF that you can e-file or mail in. (mailing is simpler)
If you think you’ll owe or aren’t sure, here is a good estimator by Intuit, put in your W-2 Income from box 1, ‘Federal taxes’ from box 2, and for ‘state taxes paid’, add up state and city taxes from box 17 and 19. Add freelance income MINUS your estimated expenses under ‘Business Income’. The number you see on the right is an estimate of your federal taxes. If you live in NY, multiply this number by .6 and that is an estimate for NY.
Here’s the link to file a NY Extension. Select ‘individual’ & ‘no special condition’.
Who will file the extension?
You will. Most folks e-file the state and snail-mail the federal. Make sure it’s postmarked by April 15th. This is on you to take care of. If you’re having a hell of a time getting it done, email me.
The IRS requires that you file an extension even if you are receiving money back.
Now what?
LET’S SCHEDULE A MEETING. Head over to client portal and make an appointment for after May 7th. (some people file an extension and then never file. You will never want to deal with this stuff. Just do it.)
The IRS requires that you file an extension even if you are receiving money back.