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Tax Filing Extension
Posted on 4/10/24 at 9:32 am
Posted on 4/10/24 at 9:32 am
My CPA informed me earlier this week that they would be filing for an extension to submit my tax return, but that I would still need to pay any money I may owe by the 15th. My response was “wouldn’t you need to finish my return first to figure what that number is?” I haven’t gotten a response yet.
Is this correct? If you file for an extension, would any money owed not be due until the new extension deadline? Do I need a new CPA?
I am in sales and my income comes in random spurts throughout the year in the form of commission checks, so I usually pay quarterly estimates. I think I withheld the proper amounts this past year but have owed come tax season in previous years.
Anyone have an opinion they could share on this?
Is this correct? If you file for an extension, would any money owed not be due until the new extension deadline? Do I need a new CPA?
I am in sales and my income comes in random spurts throughout the year in the form of commission checks, so I usually pay quarterly estimates. I think I withheld the proper amounts this past year but have owed come tax season in previous years.
Anyone have an opinion they could share on this?
11
Posted on 4/10/24 at 9:42 am to bigeasy225
quote:
My response was “wouldn’t you need to finish my return first to figure what that number is?” I haven’t gotten a response yet.
You pay an estimated number, if you overpay it goes towards next year.
Posted on 4/10/24 at 9:47 am to bigeasy225
You still have to pay estimate unfortunately. If you underpay there is penalty
Posted on 4/10/24 at 9:55 am to TJG210
Shouldn’t my accountant tell me what that estimated number is though?
Posted on 4/10/24 at 10:47 am to bigeasy225
lol I’m in the same boat as you.. I’m
Afraid I’m gonna owe a good bit on state but probably get back some on federal. I really have no idea since this is my first year going to a K-1 and I’m now having to file an extension.
Afraid I’m gonna owe a good bit on state but probably get back some on federal. I really have no idea since this is my first year going to a K-1 and I’m now having to file an extension.
Posted on 4/10/24 at 10:48 am to bigeasy225
quote:
Shouldn’t my accountant tell me what that estimated number is though?
I don't remember the number, its something like 90% though. I think its like 90% of last year's income or 90% of this years, whichever is great. So if you went up exponentially then you need to estimate it, yes. If its close to last year then I think you can use last years.
Posted on 4/10/24 at 12:25 pm to bigeasy225
Turbo tax
Posted on 4/10/24 at 3:40 pm to bigeasy225
quote:
If you file for an extension, would any money owed not be due until the new extension deadline? Do I need a new CPA?
Money owed is due Monday, extension is time to file, not time to pay.
Ask him if he can work up an estimate to see if you should send a payment. If you just gave him your info, I’d say that’s on you. If he’s had your stuff for awhile (over a month) I’d talk with him.
Posted on 4/10/24 at 3:44 pm to bigeasy225
Yeah, there is an estimated payment amount on the extension form you file. I don't know how they come up with the number. I just know you have to pay it by April 15 and your return is due in October. Same process for state and federal just different deadlines.
Posted on 4/10/24 at 4:35 pm to bigeasy225
quote:
Is this correct?
Yes
quote:
If you file for an extension, would any money owed not be due until the new extension deadline?
No
quote:
Do I need a new CPA?
Maybe.
Posted on 4/10/24 at 4:38 pm to bigeasy225
quote:
so I usually pay quarterly estimates.
BTW, any overpayment of your taxes will just be applied to your 2024 estimate taxes.
I'm not a CPA, but I do this routinely (I don't like to give the government a free loan but it happens).
Your CPA is supposed to be 90% of last years I believe or close. So say you paid $10,000 last year, they will probably tell you to pay at least $9,000 this year.
If you actually only owe $8,000 then the $1000 will be applied to your 2nd or 3rd quarterly estimated payment when you actually do file.
I punt and extend every year. I'm a small business and January and March are my busiest months so I just prefer to put it off and not think about it. One benefit, is that you can actually add to your retirement accounts up until you file. Not a 401k that's pre-tax, but a Roth you can and any post tax.
Posted on 4/10/24 at 10:58 pm to bigeasy225
quote:
My response was “wouldn’t you need to finish my return first to figure what that number is?”
He’s going to figure out a rough guess at what you owe and have you pay it. Then true it up when he figures out the exact number.
Don’t like it? Don’t sit on your information until April when everybody else is also turning stuff in at the same time.
Posted on 4/10/24 at 11:00 pm to bigeasy225
quote:
Shouldn’t my accountant tell me what that estimated number is though?
Yes
Posted on 4/10/24 at 11:01 pm to baldona
quote:
I don't remember the number, its something like 90% though. I think its like 90% of last year's income or 90% of this years, whichever is great. So if you went up exponentially then you need to estimate it, yes. If its close to last year then I think you can use last years.
Those are estimated taxes that you pay quarterly. You have to pay 100% by April 15th.
Posted on 4/10/24 at 11:04 pm to baldona
quote:
BTW, any overpayment of your taxes will just be applied to your 2024 estimate taxes.
Doesn’t have to. You can still choose to have it refunded. Usually it’s just easier to apply to next year instead of fooling with waiting on the check just to issue another one.
Depends how big your refund is and how much estimated tax you need to pay.
Posted on 4/11/24 at 6:47 am to thelawnwranglers
Frick you
Posted on 4/11/24 at 6:48 am to Weagle25
Amen brother
Posted on 4/11/24 at 9:29 am to bigeasy225
My CPA calls it Safe Harbor, it’s the estimated minimum you are required to pay by the 15th. In the same boat waiting to hear what the number is this year from my CPA.
Posted on 4/11/24 at 11:40 am to baldona
90% rule expires April 15th each year. From that point forward, if you owe any money, you will pay late interest and penalties, unless the April 15th deadline was moved due to a disaster.
Posted on 4/11/24 at 11:44 am to bigeasy225
quote:
Shouldn’t my accountant tell me what that estimated number is though?
I can tell you what I do.
If you have ALL of your information to me by a deadline (this year it was Friday, March 8), I will get your return done, or if there is some reason we need to extend, I will give you the best estimate I can of what you will owe so you can pay it in.
If you get me your info in the two weeks after that (in this case, March 9 - 22), I will run a estimate of what you will owe, I will over-estimate the amount to be safe and give it to you. I am also charging you extra for this.
If you get me your info between March 23 - April 8, I will file an extension for you but I am not calcualting anything, so either you tell me how much you want tm pay, or I will file it with 0 payment.
IF you get me your info after April 8, you are on your own for an extension, I'm not even looking at it right now.
If your CPA was not clear to you about his deadlines, that's on him, if you ignored them, that's on you.
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