“You are never too old to set another goal or to dream a new dream.”
– C. S. Lewis
Well, Thursday is April 15th. You know what this means by now, I hope.
Now, here’s something you may not have realized … Friday was “Tax Freedom Day”. That’s the date pegged by the Tax Foundation as the date when you’ve finally worked to pay off your taxes. The rest of the year is “take home” pay. 🙁
The Tax Foundation is a non-partisan educational organization dedicated to informing US–the taxpayers–about the burdens of our tax liabilities, and according to the Foundation: Americans pay more taxes in 2010 than they will spend on food, clothing and shelter combined.
The date varies year to year, and more information is here: http://www.taxfoundation.org/taxfreedomday/.
Sorry for the downer … let’s get back to the biggest news of the week…April 15th.
Let’s clear some things up with some facts about getting an “extension”.
As you know, Thursday, April 15 is the filing deadline for a federal tax return. If you need more time to get your paperwork complete, you need to have us file on your behalf the Form 4868 (Automatic Extension of Time to File) with the IRS by the end of the day on the 15th. This gives you an automatic six-month (until October 15, 2009) extension of time to file.
Here’s the deal: An “Extension of Time to File” is not an “Extension of Time to Pay”, unfortunately. The Extension simply gives you an automatic six months of additional time to get your paperwork together and file that return. But, if you owe more than what you paid with your estimate, you’ll be accumulating penalties and interest on the difference–so PLEASE don’t take the entire six months to do this!
So, when your “Extension of Time to File” is filed, you’ll need to estimate what you think you owe to the IRS. This should not be pulling numbers out of thin air! You’ll still need to go through your receipts and tax documents and get them “somewhat” organized.
From here, you can estimate both your income and your expenses, and then approximate what you owe Uncle Sam. Keep in mind that this is an ESTIMATE. And, you’ll have to pay what you estimate you owe at the time we file for the extension.
You can do this all electronically through our office, you can mail in the form WITH estimated payment (must be postmarked by the 15th), or you can call a specialized provider and pay by credit card. We can provide you with the appropriate number to call.
Here’s to more of your money in your wallet…