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mlktwins

Federal Taxes - Filing an Extension ????

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I have never had to file an extension for my taxes before, EVER, but I am under the gun to clear out my dad's house (estate sale this Saturday) so it can get fixed up and on the market April 25th.  Dad has been a full time job since September -- LOL -- but there is a light at the end of the tunnel.  Will be so glad when his house is not an issue anymore.

Anyway, I started my dad's taxes in Turbo Tax (he is not able to do them himself anymore) and I was able to fill out his extension form just fine.  Now, I have to do mine and it wants information I don't know unless I kind of do our taxes -- LOL.  What the heck?  If I had time to figure out what to put on the extension form, I would probably be able to just finish it and file my taxes -- LOL.  We have never owed before (usually get about $5K back), but I'm not sure about this year with all the changes.  I shouldn't just risk it and put -0- down for tax liability, should I??? 

I am so stressed.....

Edited by mlktwins
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I’m in process of doing this now.  I’m using forms from irs website and filling to best of my ability with a pen.  I’ll err on side of too high an amount guessed as amount owed (I don’t think I owe any actually— but with tax changes etc don’t know for sure) so as to try not to have interest or penalties, just in case.  

I can’t use turbo tax till I can update my os, which I cannot do till they finish fixing new  internet cable to our area, and successful hook up...  I already tried spending a day at public WiFi place in city and gave up.  

 

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Do you think you're going to owe anything?  I had to file an extension a couple years back and you have to pay them what you think you may owe, if you owe.  So you basically have to do a rough of your taxes in order to figure out the estimated amount.  Since the married filing jointly is $40K, you really don't have to fill in all the deductions right now if you are doing an extension.  It's a pain but if they are going to owe you, then do the basic without all the dividends and interest, go with the standard deduction and see what the amount comes out to be. Or just go with the amount from last years taxes, then you can amend when you send in in October. 

Edited by Robin M
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Oh!  Things are so screwed up from all the tax changes, that if you pay estimated taxes, the irs is waiving the penalty for underpayment this year if paid at least 75% of tax liability.  

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1 hour ago, Robin M said:

Oh!  Things are so screwed up from all the tax changes, that if you pay estimated taxes, the irs is waiving the penalty for underpayment this year if paid at least 75% of tax liability.  

We pay estimated taxes.  Hopefully, we are good.

I will try and figure out the numbers on Sunday after the sale is over.  Yeah, something to look forward too -- LOL!!!

  

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I never did understand that about the extensions. I couldn't do ours on time last year because of my back surgery and there was no way I could have figured out the calculations for the extension so I just paid the penalty. It wasn't too bad and it was only once in 35 years. Things happen sometimes. Just do your best.

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BTDT with my in-laws' move to an out-of-state retirement village.
Seriously, the extension (which I had never done) was a life-saver.
It's not that difficult & eases all the stress you're feeling.

You could just pay about $200 (or more, if you are financially able), just to show in good faith, that you're willing to pay?!?
You just don't want to do NOTHING.  😉

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For years, I filed for an Extension. Why? Because it gave me more time to work on my taxes, which were somewhat complicated in those years, and having more time allowed me to do a better job of getting all of the data I needed.  If you think you owe, pay what you think you owe when you file for the extension.

Now,  I live overseas, and there is an Automatic extension, for Overseas Americans.

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39 minutes ago, Lanny said:

For years, I filed for an Extension. Why? Because it gave me more time to work on my taxes, which were somewhat complicated in those years, and having more time allowed me to do a better job of getting all of the data I needed.  If you think you owe, pay what you think you owe when you file for the extension.

Now,  I live overseas, and there is an Automatic extension, for Overseas Americans.

I didn't know that!

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My DH is considered self-employed and I need to file an extension for Federal and NY non-resident.  I also need to do our taxes for CA non-resident and my home state (not due until May 1st) and they do not require an extension unless we owe.  We have not owed for any of these ever.  Hoping this is not the first time -- LOL.  My dad may be covering our interest and penalty payments for the "free with love" services I've been providing him -- LOL.  Just kidding...trying to find the humor in all of this :-) !!!

Edited by mlktwins

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If you have time, just make up a dummy return in TurboTax and put in estimated numbers (big items only) to figure out if you owe anything.

If you don't have time for that, personally I would just file assuming you owe nothing.  If you usually get 5K back, I would really doubt that would change to owing something, unless your income or dependents or withholdings have changed a lot.

I'm rusty, but I think there is a rule that if you pay in at least as much as you owed last year (or is it 90% for individuals?), you won't be penalized even if it's less than you owe this year.  I hope someone here can confirm if that is still true.  If so, then it should be fine if you have already paid what you owed for 2017, or if not, then just pay enough to make up the difference.

Edited by SKL
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The IRS rule on penalties for underpayment of estimated tax:

If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. 

OP,  if your withholding and/or estimated payments last year were the same as the previous year, you haven't had a big increase in income or capital gains, and you normally get a $5K refund, then its very unlikely you would incur penalties.

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OP here!  Thanks to everyone for their responses!  2 more days before the sale and then final clean-out.  The house will be empty on Monday and the contractors can start work inside to get it on the market.  So tired, very sore (muscles I forgot I had), and excited that we are getting close!  I don't wish this on anyone!  I am trying to keep perspective that I am doing this because he moved -- not in grief because he is gone.  But...so very hard and it is all me and DH doing it until the sale on Saturday!  I hired people to run the sale and hired people to haul everything else away.  Can't squeeze blood from a turnip and all that -- LOL!  

Anyway, I think I can put something together on Sunday for the tax extension.  His income changed a little, but the big difference is we moved our medical insurance into his name so now half of the premiums come off the top (we used to be to itemize those, but I think this will be better).  With the medical expenses gone from itemizing, I think the standard deduction will apply.  I think we will be ok not paying, but I will see what I can figure out.

Thanks again for taking the time to respond!

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Added question: is it good enough to put extension in outgoing mailbox for postal carrier or does it need to be taken to post office? 

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6 hours ago, Pen said:

Added question: is it good enough to put extension in outgoing mailbox for postal carrier or does it need to be taken to post office? 

As long as it is postmarked on (or obviously before) the due date, it's fine.  If it's in the outgoing mailbox, it should be postmarked that same day.  

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For something this important, I'd make the trip to the post office,  just for peace of mind.  

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I mailed my dad’s from home, but that was 2 weeks ago.  For mine, I will taking it to the desk at the post office.  I have to do New York’s too, but theirs is on-line, which is nice.

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On 4/10/2019 at 1:10 PM, Corraleno said:
Quote

If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. 

Groan.
I don’t even know how to interpret that right now. We went to get our taxes done, and wound up with a new preparer. She was literally shaking by the end, because it says we owe $7,000. We were asked to come back to our regular preparer on MONDAY. I think we’re going to put in for our very first extension.

 

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3 minutes ago, Carrie12345 said:

Groan.
I don’t even know how to interpret that right now. We went to get our taxes done, and wound up with a new preparer. She was literally shaking by the end, because it says we owe $7,000. We were asked to come back to our regular preparer on MONDAY. I think we’re going to put in for our very first extension.

 

Oh no!  Did you have any big changes last year?

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Just now, mlktwins said:

Oh no!  Did you have any big changes last year?

Dh got a bonus that probably did negate our health care tax credit for the entire year. Lucky us!

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18 minutes ago, Carrie12345 said:

Dh got a bonus that probably did negate our health care tax credit for the entire year. Lucky us!

I hope the new preparer is wrong!!!  So sorry you are dealing with tax stress too!  I have my dad getting back a huge chunk of money that he didn’t the years he did it by hand prior to this year. I wanted time to make sure I was doing it correctly, which I think I did.  With dealing with his house too, just no time to research his IRA stuff and to do ours.  I’m praying we don’t have a nasty surprise when I get them done!

Wishing you luck on Monday!

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We have flied an extension every year for the past ten years.  We do pay estimated payments all year long and also with our extension.  We're complicated though.

 

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On 4/12/2019 at 3:45 AM, Carrie12345 said:

Groan.
I don’t even know how to interpret that right now. We went to get our taxes done, and wound up with a new preparer. She was literally shaking by the end, because it says we owe $7,000. We were asked to come back to our regular preparer on MONDAY. 

 

On 4/12/2019 at 3:53 AM, Carrie12345 said:

Dh got a bonus that probably did negate our health care tax credit for the entire year. Lucky us!

 

Is the tax you already withheld for 2018 higher than what you paid for 2017? We owe federal taxes in 2018 for 2017 but the tax withheld was higher than what our tax for 2016 was. Our owing the Federal is due to stock options which are harder to predict than bonus.

e.g

2017 - tax amount was $20k

2018 - tax amount was $30k but $25k has already been withheld. So we owe $5k

We pay $5k to Federal when e-filing in March but there was no penalty to be paid.

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I managed to do my extension online.   Used eFile.  Hope it is secure. Happy I don’t have to drive to PO tomorrow. 

.  

mlktwins - offering this in case it could work for you too.  

Edited by Pen
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1 hour ago, Pen said:

mlktwins - offering this in case it could work for you too.  

Thank you!  I started getting sick at the end of my dad's estate sale yesterday and have been in bed all day with cold symptoms and a fever today.  Can't seem to catch a break -- LOL.  But...I have Turbo Tax loaded and am giving it a shot at the moment.  Hard to care when you have a fever...

I think Turbo Tax lets me file an extension on-line?!?!?  Will need to check.

 

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55 minutes ago, mlktwins said:

Thank you!  I started getting sick at the end of my dad's estate sale yesterday and have been in bed all day with cold symptoms and a fever today.  Can't seem to catch a break -- LOL.  But...I have Turbo Tax loaded and am giving it a shot at the moment.  Hard to care when you have a fever...

I think Turbo Tax lets me file an extension on-line?!?!?  Will need to check.

 

 

Yes.  

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OP here!  I got most everything in and am getting back less than usual, but don't owe anything.  When I finish, the refund should be higher.  Whew....

Thanks for the assist!  I'm going back to bed as my fever shot up while doing this -- LOL.

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On 4/14/2019 at 2:10 PM, mlktwins said:

OP here!  I got most everything in and am getting back less than usual, but don't owe anything.  When I finish, the refund should be higher.  Whew....

Thanks for the assist!  I'm going back to bed as my fever shot up while doing this -- LOL.

 

I hope you are feeling better. Did you manage to get the extension done?

 

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17 hours ago, Pen said:

 

I hope you are feeling better. Did you manage to get the extension done?

 

Pen, thanks for checking!  Fever is gone and starting to mend.  Yes, I got it done - for NY non-resident too.  Going to take a break and get my house back in order after dealing with dad's stuff for 9 months, then I will get the taxes done with fresh eyes!!!

 

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On 4/12/2019 at 6:45 AM, Carrie12345 said:

Groan.
I don’t even know how to interpret that right now. We went to get our taxes done, and wound up with a new preparer. She was literally shaking by the end, because it says we owe $7,000. We were asked to come back to our regular preparer on MONDAY. I think we’re going to put in for our very first extension.

 

 

Carrie12345, how did things turn out for you?  Hope it was better news!!!

 

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50 minutes ago, mlktwins said:

 

Carrie12345, how did things turn out for you?  Hope it was better news!!!

 

Thanks. We managed to knock it down to $6k, so... yay? 😂 

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