Personal income taxes are due in mid-April—April 15, to be exact, unless that date falls on a weekend or holiday. If you’re unable to meet this deadline, though, you have the ability to apply for an extension on your filing time with the IRS. Your reasons for needing the extension are irrelevant—whether you forgot to file or need more time to get your money or documents together, you’re able to file for an extension that gives you an extra six months to get all your paperwork submitted.
Here’s some information from our accounting firm in Union City, NJ about how you can file for this extension.
Estimate what you’ll owe
Your first step should be to get a close estimate of how much money you can expect to have to pay in taxes for the prior year. To do this, subtract the total amount of tax withheld from your paycheck and your estimated payments from the amount of tax you owe. Make sure to include any exemptions or deductions in these calculations, as they will reduce your income.
Use the tax tables in the instructions provided to you with your tax return to calculate your owed tax. If you’re going to use a tax credit, you also need to reduce your owed tax by that amount. It’s a good idea to include at least a small payment of whatever your tax liability is when you request your extension.
You’ll need to download and complete IRS Form 4868. This form is your application for the six-month extension. You can find a copy of this form on the IRS website or through any tax preparation service. It only takes a few minutes to fill it out. If you make an estimated tax payment via card before the tax filing deadline, though, you’ll be able to get an extension without even having to file Form 4868.
There’s not a whole lot of information required on the application. Expect to provide your name, address, Social Security number and other basic information. You can then mail the form in to the proper IRS address for your geographic region. Just make sure you get that form sent in by the time the original due date for your taxes arrives.
There are also some online tools you can use through TurboTax or other similar providers. You may find it helpful, however, to work with an accounting firm in Union City, NJ, as the tax preparation specialists will also be able to provide you with some information and advice about tax planning for your situation, and help you come up with a good estimate for what you’ll owe in taxes over the coming year as you pay back your tax liability.
For more information about the steps involved with filings for an extension on your taxes, we encourage you to contact Kedean’s Generation today with any tax-related questions you have and we will be happy to provide you with all the answers you need.
Categorised in: Accounting Firm