April 15 is coming soon. For some of us, it happens too fast. We may not be quite ready to file our taxes on federal income and state for one reason or another.
Most people know they can request an extension and get overtime. They may hate to do it, however, if they are not sure how. It may even seem a cop-out. It is not
Here are 5 perfectly valid reasons for filing a tax extension :.
1. When you do not have all your information even
If you have a small business, by example, you can always work on the books. Or you could be waiting for a letter confirming a charitable donation, or you still need the base stock that you sold.
2. When a company or other organization has not sent the forms
If you are a partner in a business, you can not receive your Schedule K-1 in time to file.
3. When you have an emergency that prevents you from completing your return
Hospitalization or poor health, long holidays, a family emergency, or just chewable time at work, it may be difficult to complete your return. No problem. Give yourself a little more time to this important financial task.
4. When you need more time to make contributions to or amend a pension plan
Some pension plans may be funded or even set place in the year following the tax year. You can even reverse a Roth IRA conversion. It is best to wait until you are sure of what to do.
5. When you want to election on your return, and you will not know which is the better choice than later
For example, say you have losses that you can refer to previous years. You can not know until later in the current year if it is a good idea, or you need to use the losses in the future
Here are 3 not so good reasons to file an extension of the tax:.
1. If you think you need more taxes, and you want to file an extension to give the pay
You still owe interest and penalties on the amount you should have paid.
2. If you have a substantial repayment to come, so you're just not worried about it
File your return and claim your refund. You can think of better things to do with it than leave it to Uncle Sam.
3. You file an extension out of habit
you will eventually be just as panicked six months from now, when the extension is exhausted.
Filing a tax extension free TaxACT
filing an extension does not get you completely off the hook, especially if you might need more tax. Go through the Q & A TaxACT steps, estimating information if necessary.
In the deposition not , enter the information for an extension.
To go directly to the Receiving Section extension, click the filing and file extension and follow the instructions.
You can then print or e-file Form 4868, Application for Automatic Extension of Time to File US Individual Income Tax and the necessary state forms.
Make sure you make a payment with your extension if you think that you will pay more tax. An extension does not give you more time to pay.
Do you think it is better to prepare your statement as soon as possible, or wait?
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