Don’t have the money to pay taxes? File an extension. Still trying to get everything in order? File an extension.

However, the tax extension isn’t exactly what it sounds like, and it doesn’t really “cure” anything. Here are 5 important facts about filing a tax extension that you need to know before you file.

1. An Extension Isn’t Really an Extension

The word “extension” is somewhat misleading. When you file a tax extension, you’ll get six extra months to turn in your tax paperwork to the IRS. Sounds reasonable, but keep reading.

The keyword here is “paperwork”. A tax extension doesn’t extend the deadline to pay any taxes that you may owe to the IRS.

Sound backwards? Not what you expected? Welcome to enlightenment my friend.

If you file an extension, you will still have to pay any due taxes by the normal tax deadline. So before you file an extension assuming you’ve got 6 extra months to pay your taxes, think again.

2. The Penalty is in the Eye of the Filer

In sports, penalties are up to the discretion of the referee. When it comes to tax time, the IRS wears the zebra stripes.

Although technically you’re not penalized or charged a fee for submitting the tax extension paperwork – Form 4868 – there could still be a downside to filing an extension.

If you file an extension but you’ve got a good grasp on your situation and you are pretty sure a tax refund is in your future this year, then you really have nothing to worry about. The government will hold onto your refund until you get your paperwork sorted out during your extension period.

Once you file, you’ll get your refund.

But the rules change a bit if you end up owing taxes to the IRS. If you file an extension but you choose not to pay estimated taxes by the tax deadline, the IRS will charge you interest on the taxes that you owe them.

Feels like a penalty to me.

3. You Can Request An Extension Using TurboTax

Many people still believe that the only way to file for an extension is the old-school paperwork method. Not so anymore.

The IRS will gladly accept your tax extension form via tax software and the world wide web. Simply use your tax software to e-file your Form 4868. The IRS will acknowledge your request as long as you file by the tax deadline.

4. Your Reasons Usually Don’t Outweigh the Benefits

Unless there are certain pieces of paperwork you’re waiting to arrive in the mail, an extension probably won’t deliver the benefits you might expect.

If you’ve procrastinated during tax season, the solution isn’t an extension. You could end up costing yourself more money and more frustration by asking for more time.

The best piece of advice is to buckle down, stare your tax paperwork in the face, and get it done on time.

5. No Extension for IRA Contributions

Lastly, if you think you’ve found an IRA-contribution loophole in the tax process, think again. Requesting a tax extension doesn’t have any impact on the deadline for contributing to your Traditional or Roth IRAs.

A simple mistake can delay IRS processing of your tax return.   That’s not the end of the world but is certainly something we should avoid just by double-checking the details.

Here some small pieces of advice for the last minute taxpayers this year:

File electronically:   TurboTax has free e-file available to all taxpayers. Many can e-file their federal individual tax returns for free. According to the IRS,  last year nearly 143 million taxpayers opted for the IRS e-file to submit their individual tax returns.

Check the identification numbers: Carefully check identification numbers-usually Social Security numbers- for each person listed. This includes spouse, dependents, and persons listed in relation to claims for the Child and Dependent Care Credit or Earned Income Tax Credit. Missing, incorrect or illegible Social Security numbers can delay or reduce your tax refund.

Double-check your figures: Before sending the return in the mail or before submitting  your tax return online by e-file, double-check  entries from any receipts.

Send the return to the right address: If you are mailing the return, find the correct mailing address. The addresses can vary depending on state or if it is an individual or a corporation. There are also differences if it is an amended return or an extension. Make sure about the right place to send your tax return.

Pay electronically: The electronic payment is another option. You can authorize an electronic funds withdrawal or use a credit or a debit card.

Follow instructions to send the payment: people sending a payment should make the check payable to “United States Treasury” and should enclose it with, but not attached it to, the tax return or the form 1040-V, payment voucher, if used. The checks should include the Social Security number of the person listed first on the return, daytime phone number, the tax year and the type of form filed.

Still Have Questions? Get Help: TurboTax has CPAs, IRS enrolled agents, and tax attorneys standing by ready to help.  Only TurboTax lets you talk to tax experts while you’re preparing your tax return, free.

These easy last minute steps will help you make the tax deadline.

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The 2013 tax season is coming to an end, and if you haven’t had the chance to get your tax return done, April 15, 2013 is the deadline to file individual tax returns. This is also the date that if you owe any money to good old IRS, you should write them a check by.

Here are 4 tips to keep in mind as the April 15^th date nears:

1.  Face your tax fears.  You will not know exactly how much you owe, or if you will get a tax refund, unless you actually sit down and prepare your tax return.  The first step to understanding your tax circumstances is to gather your tax information and log in to TurboTax to figure out your tax liability, if any.  You might be surprised to find many deductions and credits that you may qualify for to help you lower your tax burden and get tax refund.  In any case, knowing your tax “prognosis” will allow you to create a plan for the next step.

2.  If you can’t pay, still file on time.  Many taxpayers are overwhelmed because they owe money on their tax returns, but filing on time can be a very important step to limiting your tax liability. According to the IRS, the failure-to-file penalty is 5% of the tax owed for each month up to five months and can be as much as 25 percent of your unpaid taxes. You can use TurboTax to help you complete your tax return and file on time. The IRS also offers installment payment plans that you can establish to help you pay your taxes.  In order to pay the least possible amount, you should still file on time.

3.  If you can’t file on time, file an extension and pay on time.  A good amount of the penalties and interests that the IRS charges are based on the amount of money that you owe. An extension to file is not an extension to pay.  If you know a fair estimate of how much money you will owe in taxes but for some reason cannot file, you should still send in a check to the IRS by April 15^th along with an Automatic Extension to file.  The IRS says that as long as you pay 90% of your bill before April 15^th and the rest by the extended deadline, you will not face a failure-to-pay penalty.  In about 5 minutes TurboTax can help you get 6 more months to file your taxes (but not to pay).

4.  April 15^th, 2013 is also the deadline to claim a tax refund or file an amendment for your 2009 taxes. The end of the tax season is also a very important date for people that have not filed their tax returns and are also eligible for a tax refund. The IRS will only refund to individuals up to three years after the initial filing date. This means that if you have not filed your 2009 tax return and you are entitled to a refund, you must act quickly to make sure that the IRS can send you your hard earned tax refund.

April 15^th is also the deadline for any amendments needed for your 2009 tax returns; this deadline may be later if your income tax payment for the 2009 year occurred less than two years ago.  Unfortunately e-file is not available for prior year returns, but if you still need to prepare a 2011 or earlier tax return, you can purchase  prior-year software and install it on your computer.

It doesn’t matter what tax situation applies to you.  TurboTax has the tools and the help you need to make this income tax filing season a smooth process.  Don’t be afraid to ask questions and to use TurboTax to help you file your income tax return before it is too late.  Only TurboTax allows you to ask tax experts who are CPAs, IRS Enrolled Agents, and tax attorneys questions while you prepare your tax return, free.

Did you receive a K-1 form? It’s not a common form for most taxpayers but questions about K-1s are some of the top questions we are seeing at this time in the season. This is a document that partnerships, LLCs, S-corps, estates, and trusts use to describe to owners/shareholders what income they are receiving from the entity.

Basically, it’s a schedule that allows you to see what income you received during the tax year and the Schedule K-1 is used for pass through entities.  Realize, too, that you might receive a K-1 form if you are invested in a fund or an Exchange Traded Fund that operates as a partnership. As a result, you’ll get a form that states your portion of the profit or loss associated with the partnership.

If you are a partner or shareholder in a pass through entity, you probably received a copy of the Schedule K-1, filled out to describe how income has been distributed to you. The information from the K-1 is then put on your personal tax return.

The entity issuing the K-1 forms files them with the IRS. The recipients use their copies to make sure that they are paying the appropriate taxes.

Will You Get a K-1?

If you own a business with someone else, such as a partnership, then that business will issue you a K-1 to report your share of the income, credits, and deductions. If you own a business by yourself, either incorporated or as a sole proprietorship, then your business won’t issue a K-1.

There are a few other cases where you will receive a K-1 and not realize you were to get one – the most common has to do with your investments. If you invested in a master limited partnership (MLP), then you will receive a K-1 because MLPs are set up as partnerships with shareholders being limited partners in the enterprise. If you invested in an Exchange Traded Fund, some of those ETFs will issue K-1s if they are organized in a way that requires it. These ETFs are often trading in commodities such as gold, silver, natural gas, or oil.

Parts of the Schedule K-1

There are three different sections of the Schedule K-1:

1. Issuing entity information: This section includes information about the entity issuing the K-1. It has the EIN, as well as the address and the IRS filing location of the entity. You can also find the publicly traded partnership status, if it applies.
2. Partner/shareholder information: This is the area where the individual partner/shareholder information appears. It includes the tax ID number (usually a Social Security number) as well as name and address.
3. Financial details: In this portion, the partner/shareholder can see information about his or her profits and losses related to the entities activities. So, if you have received a distribution from your LLC, or if you have income from a partnership or S-corp, this is where it will appear. Your losses also appear in this section. This is the longest section of the form, and additional pages might be attached if warranted.

The tricky part for you, the taxpayer, with a K-1 is timing. Unlike 1099 and W-2 forms, which are due to the taxpayer by the end of January (mid-February at the latest), a K-1 isn’t due until mid-March. Employers and banks know how much they’ve paid out to people by January 1st, so the 1099 and W-2 deadlines are reasonable. Since businesses need more time to file their tax returns, the K-1 isn’t due until March 15th. That gives you just a month before taxes are due.

If you actually own the business, you can prepare your own K-1 when you prepare your business taxes.

If you still have questions about your K-1, don’t forget TurboTax has tax experts who are CPAs, IRS enrolled agents, and tax attorneys available to answer your questions, free so you can file before the tax deadline.

If there’s no possible way you’ll make the tax deadline, as a last resort you can go online and file for an extension by April 15.

Filing an extension automatically pushes back the tax filing deadline to October 15, 2013 and protects you from the failure to file penalty which can grow at a rate of 5 percent of the amount due with your return for each month that you’re late, up to five months. For example, if you owe $2,500 and are three months late, the late-filing penalty would be $375.

Be aware that filing an extension is simply an extension of time to file, not an extension to pay. If you owe money for the 2012 tax year, you still need to pay your tax liability (within 90 percent accuracy) by April 15 to avoid paying interest and penalties on the amount owed.

Filing an extension does not stop you from incurring interest and paying a late payment penalty. You will incur interest at a rate determined quarterly based on the federal short-term rate, plus 3% compounded daily even if you do file an extension, which is why filing for an extension should not be thought of as a way to delay tax payments.

You will also have to pay a late payment penalty, which is one-half of one percent of tax owed each month or part of the month until tax is paid in full or 25% max is reached.

Even if you are unable to pay your tax liability in full, pay as much as you can with your tax return. You can even apply for an online payment agreement or Installment Agreement Request when you submit your tax return.

So, do you really need more time to file your taxes this year? Whether you’re filing your taxes up until 11:59 pm on April 15 or you need to file an extension, relax, we’ve got you covered. TurboTax makes it easy for you to finish filing your taxes, but if you need more time, you can file your extension online for free in minutes with TurboTax Easy Tax Extension. And, only TurboTax lets you talk to CPAs, IRS enrolled agents and tax attorneys while you prepare your tax return, free.

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Michael Rubin CPA, CFP- Total Candor

My favorite end of season tax tip is the “once (again) over.”  While your tax return should be completely accurate throughout, you should double check a few things before you send your tax return to the IRS in a rush the night of the 15^th.   Make sure at least the following are 100% correct:

• All Social Security numbers
• All wages and withholding from the W-2’s you received.  Double-check your employer’s EIN too while you’re at it.
• The total gross proceeds from all of your investment sales, if you have any
• Mortgage interest from Form 1098, it you itemize
• The routing and account numbers of your bank account if you are expecting a tax refund or if you will have your payment due automatically withdrawn.

Phil Taylor, CPA – PT Money

My favorite end-of-season tax tip is to make a contribution to a Traditional IRA before you file. If you are eligible to make a tax-deferred contribution to a Traditional IRA, and you do so before you file your taxes, the contribution can be designated as previous year.  Meaning, you can deduct the current year contribution on your tax return you are filing for the previous year. For example, a $5,000 contribution to a Traditional IRA on April 15^th, 2013 would net a $1,250 deduction from someone in the 25% marginal tax bracket on his or her 2012 tax return. This is a great way to save for your retirement and save on taxes at the same time.

Jim Wang – Bargaineering

Maintain a list of all the documents you received this tax season. This will help you remember to include important documents this year if you haven’t yet filed and next year as the documents start coming in the mail and you wonder whether or not you’ve received everything in order to do your taxes. You should have a list of every institution that sent you a 1099, such as 1099-INTs from all your bank accounts that paid out interest, as well as other forms such as K-1s from partnerships and W-2s from your employer(s). Then, as the documents come in, you can use your list as a checklist to see who else is left. Remember to amend that document if you close accounts or add new ones.

Once you file your 2012 tax return, you won’t need many of the documents you used anymore. Scan them and shred the paper copies. If you are a little paranoid, keep the paper copies for, at most, six years (that’s the period of limitations if you fail to report income) and then dispose of them. Having an electronic copy is almost always as good as a paper copy so scan, shred, and recycle the old documents. When you scan them, make sure to store them in a secure location with adequate backups.

Elle Martinez – Couple Money

With the peak of tax season just about wrapped up, my tax tip for everyone is to review and automate. Once our taxes are submitted and we take a week or so to get our minds off of them, we then plan ahead on how we can improve for filing next year.

Using TurboTax for the last few years has actually made it easier to look over all the numbers and we can compare how did this year to how we did last year. Since we file for both personal and business, I use that data as motivation to be more organized with so I can find all the receipts and paperwork I need.

On the personal side we need to have a system for our donation receipts for when we go through possible deductions that we may qualify for. As for my business, I have to refine my storage so I can pull out supply receipts easily come tax time.

Besides keeping receipts our review for the past year showed that we can invest a little bit more for our long term future. We’ll taking advantage of  starting our toddler’s college fund and contributing more to both of our IRAs. Having this review also meant that we shopped around to found a brokerage that can manage our IRAs with lower costs than we’re currently using. Hopefully by the end of the month we’ll have that all finished.

If you’re doing it by hand (this year will be my 29th return filed using TurboTax, but I’ve read some people still use pen and paper) check your math. It’s easy to transpose numbers or make a simple arithmetic error. Don’t risk interest and penalty for such a simple error.

If you spent time volunteering, the time itself isn’t a deduction, but you may be able to take a deduction for the miles driven. A weekly round trip of 20 miles  can add up at the current rate of $0.14 per mile. If you already itemize, this adds a bit to your potential tax refund. Remember, any cash donations must be acknowledged by the charity in writing before you file your return.

If you have a deduction from your paycheck to a charity, don’t forget to include this. This is a valid tax deduction even though you may not receive a direct acknowledgement from the end charity. Your final pay stub for the year should show the total donation you’ve made.

You know that real estate tax is tax deductible, but don’t forget the tax you pay each year for your car or boat also counts as personal property tax. It may be a couple hundred dollars added to your tax deductions.

Did you refinance again in 2012? If you paid any points on the new loan, you can deduct the points over the life of the loan. The good news is that if you were taking the partial points deduction for the prior loan, you now get to deduct the balance. With how rates dropped to record lows last year, this affects many people who were serial refinancers.

Did you purchase stock in your company at a discount and then sell it for a gain in 2012? The cost listed may not be what you paid. That discount was included on your W2 as ordinary income and should be added to your cost basis when you sell. It’s common to buy stock at a 15% discount, so be careful to check your records, and not let yourself be taxed twice on that discount.

I can’t end a last minute article without mentioning IRAs. Nearly everything on your return has already happened, income, stock sales, 401(k) deposits, and so on. Dec 31st came and went. The IRA is one of the few exceptions to this rule, you can still deposit, until April 15th, up to $5000, or $6000 if you were 50 or older in 2012, and have it count for your 2012 return.

If you converted any IRA money to a Roth IRA, you may be able to still recharacterize any or all of that conversion back to the traditional IRA if you decide it will be in your best interest while reviewing your tax return. This is one of the rare chances at a financial “do-over” and can benefit you if the converted shares fell in value or if your marginal tax rate was higher than you anticipated.

Lastly, go online and prepare your tax return.  TurboTax will help you get all of the tax deductions and credits you’re eligible for and help you keep more of your hard-earned money.  You can e-file up until 11:59 on April 15th if you go online, but the sooner you finish the quicker you can get your tax refund.  If you still have questions, you can get your questions answered by TurboTax tax experts who are CPAs, IRS enrolled agents, and tax attorneys, free.

If all else fails, you can file for an extension with TurboTax Easy Extension. This doesn’t buy you time to pay your tax bill, just some extra time to get your paperwork together. You’ll want to take what information you have and make the best estimation of what you’ll owe and send it with the extension request.

Comment and let me know if I helped you catch a potential mistake or oversight on you return.

La temporada de impuestos del 2013 ya está por terminar, y si no has tenido la oportunidad para declarar tus planillas de impuestos, la fecha límite es Abril 15 del 2013 para personas físicas.  Esta también es la fecha límite para enviarle el pago al IRS por cualquier impuesto sobre ingresos que tengas que pagar.

He aquí algunas cosas que deberías tomar en cuenta ya que Abril 15 está por llegar:

1.  Enfrenta tus temores tributarios. No sabrás exactamente cuánto debes, o si recibirás un reembolso, si no dedicas un poco de tiempo para preparar tu planilla de impuestos. El primer paso para entender tus circunstancias tributarias es recaudar todos tus documentos e ingresar a la página de TurboTax para llenar tu planilla y saber si tienes alguna responsabilidad tributaria. Pudieras hasta sorprenderte al saber que existen créditos y deducciones que podrían ayudarte a reducir tus impuestos sobre el ingreso, y hasta recibir un reembolso.  De cualquier modo, el saber tu “prognosis” te ayudara a trazar un plan para los próximos pasos.

2. Si no puedes pagar, como quiera deberías llenar a tiempo.  Muchos contribuyentes se sienten abrumados por que deben dinero en sus planillas de impuestos, pero el declarar la planilla a tiempo es un paso muy importante hacia reducir el pago que tienes que enviarle al IRS.  De acuerdo al IRS, la penalidad por no llenar a tiempo es de un 5% de la cantidad a pagar cada mes tarde, y puede llegar a ser hasta el 25 por ciento de los impuestos no pagados.  Puedes usar TurboTax para ayudarte a completar tu planilla de impuestos por ingreso y declarar a tiempo. Esto te ayudara a pagar la menor cantidad posible al evitar esta penalidad.

3. Si no puedes declarar a tiempo, aplica por una extensión y paga a tiempo.  La mayoría de las penalidades e intereses que el IRS cobra están basadas en la cantidad que debes de impuestos por ingresos. Si aplicas para una extensión para declarar tus impuestos, esto no significa que tienes más tiempo para pagar. Si sabes más o menos cuanto tienes que pagar en impuestos, pero por alguna razón no puedes todavía declarar tus impuestos, deberías mandarle al IRS el pago de los impuestos antes de Abril 15 junto con una extensión para declarar. El IRS explica que siempre y cuando ellos reciban más del 90% del dinero debes en impuestos antes del 15 de Abril, y le pagues el resto antes de la fecha de prórroga de la extensión, no tendrás una penalidad por no pagar a tiempo. En menos de 5 minutos TurboTax te puede ayudar a obtener una extensión automática para declarar de seis meses (recuerda: no hay extensiones para pagar)

4. Abril 15, 2013 es también la fecha límite para reclamar un reembolso o presentar una enmienda de tu declaración tributaria del año 2009. El final de la temporada de impuestos es también una fecha muy importante para personas que no han declarado sus impuestos pero califican para un reembolso. El IRS solo reembolsara a personas que declaren sus impuestos durante un periodo de tres años. Esto significa que si no has declarado tus impuestos del 2009 y calificas para un reembolso, tienes que actuar con rapidez para asegurarte que el IRS emita el reembolso por el cual trabajarte tan arduamente.

Abril 15 es la fecha límite para personas que las personas que necesitan hacer una enmienda en sus impuestos del 2009.  Esta fecha puede ser un poco más tarde si el pago de los impuestos para el ano tributario 2009 ocurrió en menos de dos años.  Lamentablemente la declaración electrónica (e-file) no está disponible para años anteriores, pero si necesitas declarar tus impuestos del 2011 o antes, puedes comprar el programa TurboTax de años anteriores e instalarlos en tu ordenador.

Sin importar tu situación tributaria, TurboTax tiene las herramientas y la ayuda que necesitas para que esta temporada de impuestos sea un proceso satisfactorio.  No temas en hacer preguntas y usar TurboTax para declarar tus impuestos antes de que sea muy tarde.  Solo TurboTax pone a tu disposición gratuitamente Contadores Publicos (CPA), Agentes Matriculados con el IRS (Enrolled Agent) y abogados tributarios para ayudarte con  tu declaración.

Every year there are tens of millions of taxpayers that wait until the last minute to file their taxes. Doing so will not only cause stress but might also put you in jeopardy of not being able to complete them before April 15, and possibly face penalties from the IRS.

So if you’re one of those late-filers – what are you waiting for!? With only a few weeks left before the April 15 deadline, we at TurboTax want to make sure all of your tax questions are answered and that you feel empowered to file your own taxes and keep the money you deserve

To share some important last-minute tips to help you file your taxes within a short period of time, financial expert and TurboTax spokesperson Mike Periu will be hosting a live tweetchat in Spanish on Thursday, April 4 at 9 – 10 p.m. EST / 6 – 7 p.m. PST.

By using the hashtag #TurboTaxChat in your tweets during the event, you’ll be able to join in the conversation and ask your questions on:

• How to take advantage of credits and deductions you deserve
• How filing your taxes online will help you save time and money
• What is an extension and how to file it properly
• And much more!

There might be a lot of reasons why you haven’t filed your taxes. Whatever they may be, don’t miss the opportunity to empower yourself with more knowledge during this tweetchat and file your taxes as soon as possible to keep more of your hard earned money!

Tweetchat with @MikePeriu and @TurboTax

Thursday, April 4, 2013

9 – 10 p.m. EST / 8 – 9 p.m. CST / 6 – 7 p.m. PST

#TurboTaxChat

If you’re nervous about filing on time or worried about getting your taxes done right, there’s no need to worry.  I have a few tips to make this year’s filing easier on you.

Go Online and E-File

In my opinion e-filing has made getting taxes submitted easier and receiving my refund a bit faster. E-file with direct deposit is the fastest way to receive you tax refund.  The IRS estimates that 9 out of 10 tax refunds will be processed within 21 days.

Submitting tax returns through the mail can be time consuming and paper filed tax returns that are not e-filed are proned to mathematical errors and missed tax deductions and credits.

When you file your taxes with tax software like TurboTax you don’t need to know the tax code.  TurboTax will ask you simple questions so you get all of the tax deductions and credits you’re entitled to so you keep more of your hard-earned money.

Best of all, you may be able to file your federal tax return Free and save more money.

Have a Tax Question? Get Free Help

If you have tax questions don’t worry.  Only TurboTax lets you talk to tax experts who are CPAs, IRS Enrolled Agents, and tax attorneys while you prepare your tax return, free.

TurboTax’s blog is another great free resource that you can use to find tax tips and frequently asked tax related questions answered.

Prepare for Next Year

Though 2013 is still in its first quarter, now is a great time to get your system set up for when you file next time. If you haven’t gotten a smooth system for gathering your financial paperwork, consider using online options like to scan, save, and file these important documents for when you’ll need them.

I’d love to hear from you about how you manage your taxes. What do you do to simplify getting your taxes handled? If you’ve been stressed before, how did you cope? What tips do you want to share with others?

Cada año, millones de contribuyentes esperan hasta el último momento para declarar sus impuestos. Esperar no solo te causará estrés pero también te pone en peligro de no poder terminar tu declaración antes del 15 de abril, y posiblemente meterte en problemas con el IRS.

Si todavía no has declarado tus impuestos – ¿qué estás esperando?  Solo quedan algunas semanas antes de la fecha límite del 15 de abril, y aquí en TurboTax queremos estar seguros de que tengas las respuestas a todas tus preguntas y que te sientas seguro/a de poder declarar tus propios impuestos y quedarte con el dinero que te mereces.

Mike Periu, experto en finanzas y portavoz de TurboTax, estará compartiendo unos consejos muy importantes que te ayudarán a declarar tus impuestos en poco tiempo. Lo hará durante un Tweetchat en español que se llevará a cabo el jueves 4 de abril, entre 9-10 p.m. EST / 6-7 p.m. PST.

Para ser parte de la conversación y hacer tus preguntas, incluye el hashtag #TurboTaxChat en tus tweets durante el evento. Temas a tratar incluirán:

• Cómo tomar ventaja de los créditos y deducciones que te mereces
• Cómo ahorrarte tiempo y dinero al declarar tus impuestos en línea
• Qué es una extensión, y cómo procesarla correctamente
• ¡Y mucho más!

Es posible que tengas muchas razones por las cuales todavía no hayas declarado tus impuestos. Sean las que sean, no te pierdas de la oportunidad de aprender de este tema tan importante y poder declarar tus impuestos en cuanto antes, y así poder quedarte con más de tu dinero.

Tweetchat con @MikePeriu y @TurboTax

Jueves 4 de abril, 2013

9 – 10 p.m. EST / 8 – 9 p.m. CST / 6 – 7 p.m. PST

#TurboTaxChat

Tax Filing After Deadline

I missed the tax deadline. Should I still file?

Yes, you should still file your taxes as soon as possible.

How should I file my taxes?

IRS e-file is now closed, but there is good news.  You can still file using our downloaded TurboTax software and mailing in your tax return.

Will the IRS charge penalties for not filing by October 15th?

If you have a tax refund coming, there is no penalty for filing late.  Penalties are calculated based on amounts due.

If I owe money, will I be charged penalties and interest?

Unfortunately, you will receive three separate penalties on balances due on late tax returns as follows:

• Failure-to-file penalty
• Failure-to-pay penalty
• Interest

The failure-to-file penalty can be the most steep, as it starts out at 5% for each month the tax return is not filed, up to a total penalty of 25% of your balance due, which is why you should file your taxes as soon as possible.  Even if you owe money and can’t pay it you should still file to eliminate this penalty.  In addition, you may be eligible for other payment options under the IRS Fresh Start Initiative.

If I have a hardship will I still have to pay penalties?

If you show the IRS reasonable cause for not filing on time, you may not have to pay penalties.

In addition, 2011 tax deadlines for individuals and businesses impacted by Hurricane Isaac have been extended to 1/11/2013.

Hopefully this puts your mind at ease and moves you closer to filing your taxes. Just because you didn’t make the tax deadline doesn’t mean you should forget about filing altogether.  Who knows?  You may be missing out on a tax refund.

Tax Deadline

Time can get away from us and even those extra six months can fly by and leave you scrambling come October. If so, here are 3 last minute tax tips to help take some of the stress out of this tax deadline.

1. File Electronically

The last thing you want to be bothered with on the tax extension deadline is finding time to get to the post office and mailing out your tax return. Your life is busy enough, and if something comes up at work and you can’t get your tax return sent out in time you’re potentially setting yourself up for additional penalties.

So, stick to filing electronically so that you know your return gets into the hands of the IRS before the deadline passes. Luckily, if you are using TurboTax, you can e-file your tax return any time up until the October 15^th deadline.

2. Review Carefully

Since you are not allowed any additional extensions on personal income taxes past the October 15^th deadline, you’ll want to spend the time to make sure you’ve got everything correct on the return. Even if you find yourself rushing on the tax deadline day, it’s a good idea to make sure it’s accurate to avoid any further issues with the IRS.

Go through your tax return and double check all of the names, social security numbers, and wages reported from your W-2s and 1099s. Then be sure to go over all of your potential tax deductions and check that you’ve included everything and the numbers are correct.

3.  Get Organized

If going through the extension process stressed you out, then now is a good time to get organized so that it doesn’t happen next year. By the time the October 15^th tax deadline passes there’s less than three months until the close of the current tax year. That leaves little time to get things together, but if you take the time to start now, you’ll find that you probably won’t need to rush around in the spring and won’t need to file an extension.

Start by gathering any expenses or deductions from the past year. This is especially important if you’re self-employed and have a lot of expenses to track. By getting those items gathered and put aside today, you won’t need to dig for them in the spring.

Finally, start thinking about year-end tax moves you can make that will reduce your tax bill. This may include making IRA contributions or scheduling January’s mortgage payment to come out of your account at the end of December. Preparing for these tax moves today can help lower your tax bill tomorrow.

Don’t let your tax extension cost you more. Take a look at some of the most commonly missed tax deductions by extension filers.

‘Out of Pocket’ or ‘Noncash’ Charitable Contributions

Even if you’re in a rush, it’s hard to forget about those larger monetary charitable contributions. They usually leave a pretty obvious paper trail.

But what about those smaller contributions made with your pocket change, your gas money, or by donating goods and services to local charities and non-profit organizations? When you’re already past the April tax deadline and you’re in a rush to file your taxes, it’s easier to forget to take the time to add up all of the small stuff.

Many extension filers admit to caring more about filing before October vs. making sure they get every single deduction. Don’t forget, adding up the small stuff can make a huge impact.

State Sales Tax

The State Sales Tax deduction is a tax deduction that gives you the opportunity to choose between deducting state and local income taxes on large purchases or state income taxes.

If you live in a state with zero income tax (South Dakota, Washington, Alaska, Texas, Nevada, Florida, and Wyoming) then this is your chance to deduct state and local sales tax since you won’t have any state income taxes to deduct. Unless Congress votes to extend this tax provision, then 2011 is the last time you will be able to take advantage of this tax savings.

Student Loan Interest

If you made student loan payments on qualified student loans, the interest portion up to $2,500 is tax deductible.

You can even deduct your student loan interest if your parents are making your payments as long as they are not claiming you as a dependent. According to the IRS, the payments may be looked at as a financial gift from your parents.

Earned Income Tax Credit

Figures from the IRS show that more than 25% of eligible tax filers forget to claim the Earned Income Tax Credit. Many people aren’t aware that they qualify.

On average, households which claimed the EITC last year saved an additional $2,000. When you sit down to file your taxes don’t forget to claim the Earned Income Tax Credit.

Don’t worry about missing these valuable tax deductions and credits.  TurboTax will help you take advantage of these and other tax deductions.

Tax Tip Webinar

Our Webinar will cover:

• Forms needed to get started and how to get organized
• Getting started with TurboTax
• Entering your information and filing your tax return
• How to get more help if needed

We will also have a Q & A session available and questions will be answered after the presentation.

There’s no reason for you to miss out on your tax refund or pay high prices to get your taxes prepared.  Here are the directions to join the Webinar and learn how easy it is to file your own taxes:

1. In order to view the presentation, please ensure you have Flash installed on your system.  Please copy and paste this link https://join.me/529-687-178 to your browser’s address bar or you can go to the join.me site and enter 529-687-178 in the “Join someone’s screen” field.
2. To enable sound, locate the phone icon (green circle with a phone at the top of the screen) and click on the button once.  Dial the conference number and you’ll be asked to enter the conference id and then the # symbol.  The conference number is toll free.

During the presentation, all participants will be muted, so please submit your question via chat.  You can submit your question by clicking the icon next to the phone icon at the top of your screen.  Questions will be answered after the presentation.

Tax Deadline

When is Your Extended Tax Return Due?

Your timely filed extension changes your deadline to file from April 17 to October 15.  Of course, this six month delay assumes you paid any tax you owed back in April. As the saying goes, an extension of time to file is not an extension of time to pay your tax.

How Do You File a Tax Return You Previously Extended?

To file an extended tax return, simply gather and enter the information from your W-2s, 1099s, and tax documents.  TurboTax will ask you the necessary questions to enter the appropriate information from your documents and help you complete your tax return.

What Should I Do If I Didn’t File a Tax Extension?

If you missed the tax filing deadline and the deadline to file an extension in April, you should still file your tax return as soon as possible.  You may be missing out on your big tax refund and if you owe money you will continue to incur penalties and interest until you file your tax return.

Need More Time?

Years ago, filing an extension provided the filer with four additional months to file his or her return, until August 15.  Back then, you could apply for an additional two-month extension if you needed it.  While that second extension wasn’t technically automatic, it was nearly so.  These days you automatically get the additional six months from the get-go.  On the other hand, that means no additional extensions are available so make sure you file your tax return by October 15.

Tax Refund

Why You Should File (Even if You Don’t Think You Have To)

Even if you don’t think you make enough money to file an income tax return, it’s still a good idea to file. There are some circumstances in which you might actually be eligible to get some money back, and if you don’t file your tax return, you won’t get that money. Here are two good reasons to file:

1. Tax withholdings: Is your workplace withholding money from your paycheck for federal income taxes? If so, then the government may owe you money. If you want that tax refund from your withholdings, you need to file a tax return.

2. Refundable tax credits: There are a number of tax credits offered to those with lower incomes. These tax credits are refundable, or partially refundable, meaning that you may get excess money refunded even if there is no tax liability to apply the tax credit to.

Credits like the Earned Income Tax Credit and the Child Tax Credit can mean more money in your pocket. The average EITC is $2,000.  Each year, there are different tax credits and opportunities and TurboTax gets you the refundable tax credits available if you qualify. It’s worth it to file a tax return in order to get that money.

Filing your tax return is one way to make sure that you are getting the money that you are entitled to. Double-check your situation. Even if you don’t have to file a tax return, it might be to your financial benefit if you decide to file anyway because of over withholding and refundable tax credits.

Tax Deadline

Besides procrastination, some are delaying getting their taxes completed because they are worried about getting them done correctly. Fortunately there are ways to help with both.

Tips on Getting Your Taxes Done

If you’re worried that you won’t get your taxes done on time, here are a few tricks you can use to get it completed and off your already full plate.

• Create Your Own Deadline: October 15th is the official tax deadline, but you can do yourself a big favor and pick an earlier date to be your deadline. Mark it on your calender (offline or online) and make sure it’s listed as a big event. You don’t want to miss the date. Just think of it this way – the sooner it’s over, the sooner you can relax.
• Break It Down: Do you feel overwhelmed at the amount of work ahead of you? Break it down into little pieces of work. Get your W-2s in one day, take care of your 1099s the next, and so forth. When we were doing our taxesthis year, I simply entered the information bit by bit into TurboTax online as it came in. No stress, no mess.
• Enlist an Accountability Buddy: If you need a bit of a push, ask a friend or relative to keep tabs on you until you filed your taxes.

Try out any one of these tips starting today and add another if you need a bigger boost.  Don’t avoid filing your taxes even if you didn’t properly file an extension.  You may be missing out on a nice tax refund.

Thoughts on Tax Extensions

Please remember that the tax extension is an extension of time to file and not an extension to pay. If you owe money and you don’t have the total amount, please go online to the IRS.gov or call them (800-829-1040) to request a Online Payment Agreement and get on a payment plan. If you have any questions, please leave it in the comments below.

I’d love to hear from you about how you’re doing this year. How many of you had filed an extension for your taxes? How many of you still need to file before the deadline? What is the biggest barrier for you?