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File an Extension?

Discussion in 'Business & Tax Advice' started by Quit925today, Apr 17, 2017.

  1. Quit925today

    Quit925today Newbie

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    Hey guys,

    I been grinding hard everyday but still have my 9-5! Anyways, I'm probably stupid for waiting the last minute to do my taxes. I'm a sole proprietor with my 9-5 job income and my wife's income. Here is my question:

    Can I file an extension with just my business income and wait till I get an accountant a couple of months from now so I can organize all my receipts etc.? Or should I file an extension with my 9-5 job and my wife's job?

    Thanks guys.
     
  2. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    The extension, Form 4868, cannot be a partial extension.

    You'll need to file the 4868 and get all your ducks in a row and file complete forms before August 15th.

    Also, the extension does not mean you don't pay any tax owed, you have to send that in with the extension before the post office closes today.
     
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  3. Quit925today

    Quit925today Newbie

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    Thanks @BassTrackerBoats So I need to file all forms meaning mine and my wife's 9-5 and my online income before August 15th? Also, I understand I have to pay tax owed. I will not be able to pay all the money owed at once. I remember 1 year i was paying payments and big penalties after filing an extension.

    When I fill out form 4868 do I have to put all my profit and loss or can I wait till August 15th to get all my ducks in a row. My wife and I w2's are easy to do but me adding my online income is not going to be possible with adding receipts etc.... dumb on my part.

    Also, don't I have till tomorrow for an extension?

    Thanks again
     
  4. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    You have to file by today to get the automatic extension so be sure to fill that puppy out and drop it at the post office. Some post offices stay late or have some kind of IRS mail box to make sure your letter is postmarked today.

    If you do not have all that is owed send what you can and deal with the penalties and interest... they are really not all that bad from past experience.

    Once you file 4868 you have until August 15th to file complete forms but you have to go file complete forms by the deadline. I'm not sure what the actual penalties are if you do not because I've never not done that.

    Get the $ amount close if you do not know it on the 4868.... I've done that without an issue in the past.

    But Do It Today For Sure.
     
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  5. Quit925today

    Quit925today Newbie

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    Thanks @BassTrackerBoats My wife and I don't make much money together. However, my online earnings are much higher then my job. I know I will owe on my online earnings. It says Estimate tax total tax liability for 2016 and total due balance due. The problem is I don't know. If I put I owe 5K on form 4868... will they expect me to pay that if I owe them less? Thanks
     
  6. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    No, the will only expect you to pay what you actually owe.

    I did post a thread about how you can save a bunch with an IRA if you earn under 62K... I mean the numbers you save are stupid good.

    See if that is applicable to you.
     
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  7. FormerBoxer

    FormerBoxer Regular Member

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    Tomorrow is the deadline to file for an extension. You can see here - https://www.efile.com/tax-day-deadlines/ I made a huge mistake when I started my business by not claiming my online business earnings for over a year and went to an accountant and paid stiff penalties. I don't advise you to do that but if you can't pay the estimated extension, I would just go to an accountant within the next couple of weeks and get your business started the right way and pay some penalties.
     
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  8. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    I thought today was the 18th... my bad!

    Don't tell my wife as I told her she had to get to the post office and it was a bit of a pain for her.
     
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  9. FormerBoxer

    FormerBoxer Regular Member

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    BTB with all the $$$ you make you do your own taxes:)
     
  10. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    Well, we have a handful of forms because we have a handful of LLCs that we pay someone for and my wife and I file separately; I do her taxes every year and get an extension for her every year as well.
     
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  11. Skyebug77

    Skyebug77 Jr. VIP Jr. VIP

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    They are allowing the extensions to actually file the return until October 16th

    You can also jump on turbo tax today and file an extension for free online.
     
  12. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    It has always been August; when did they change it to October?
     
  13. Skyebug77

    Skyebug77 Jr. VIP Jr. VIP

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    I also do the same as you. Its been like this for every year I have done mine. I always wait until October to file it. I usually pay most if not all taxes I have estimated before April 18th, but file extension as I often have paperwork come in late. But I always wait until October to file the return. But to answer your question, I do not know when that was changed. I remember I used to have a client that always filed an extension and then the return in August like you, but I think that must have changed some time ago.

    Maybe your showing your age ;)
     
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  14. Skyebug77

    Skyebug77 Jr. VIP Jr. VIP

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  15. natedogg

    natedogg Regular Member

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    I filed an extension for my business and personal income. What happens if I filed a wrong estimate? Once I actually do them in October let's say the estimate is higher or lower... will there be a fine or penalties or can my accountant or myself adjust it? Thanks
     
  16. Skyebug77

    Skyebug77 Jr. VIP Jr. VIP

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    If you owed more than the estimated payment that you made, then you will have a 1.2% penalty fee against the "owed" amount each month. Its pretty small amount really.
     
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  17. natedogg

    natedogg Regular Member

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    Thanks! I'm not making any payments on the extension. How much is usually the penalty I will have to pay.
     
  18. natedogg

    natedogg Regular Member

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    What I pretty much did was plug in an estimate on turbo tax to file an extension. I do owe taxes on my business. I was planning to get an accountant in October to get all my crap together and file it right. However, I think the estimate tax I owe is close. So hopefully I'm not screwed when I go to see the accountant. What do you think?