Tax Planning Tax Extensions: Extension to File, Not Pay Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Apr 11, 2012 - [Updated Apr 15, 2012] 2 min read The tax deadline is almost here and with the final tax deadline (April 17th) comes tax procrastination and common misconceptions about filing extensions. Although taxpayers still have two extra days to file this year, some of them will still wait until 11:59 PM on Tuesday and throw in the towel, file an extension, and miss out on possible tax refunds. Tax Extension Common Misconceptions The reasons taxpayers file extensions vary, but one of the common misconceptions regarding extensions is that they are extensions to pay tax liability. If you are planning to file an extension because you owe money (or think you do), think again. Filing an extension won’t help you forgo those extra penalties and interest, because an extension is an extension of time to file and not an extension to pay. If you file an extension, you still need to pay (within 90 percent accuracy) by April 17 to avoid late penalties. File by the Tax Deadline Even if you owe money and are unable to pay your liability, file your taxes on time since an extension will not rescue you from any additional penalties and interest. If possible pay as much as you can with your tax return and then you can apply online for an online payment agreement or send an Installment Agreement Request, with your tax return for the balance. TurboTax makes it easy for you to quickly file your tax return and if you still have questions you can get them answered from our experienced tax experts for free so you can accurately finish your tax return by the April 17th deadline. And who knows? Once you take advantage of all those tax deductions and credits, you may be getting a tax refund instead of owing money. Still Need More Time? If you just have to file an extension, you will get an extra 6 months to file your taxes, but not pay your tax liability. You can file it for free online in minutes with TurboTax Easy Tax Extension. Keep in mind you still have to estimate your tax liability to enter on the form and include any taxes you already paid. On the go? TurboTax also has easy extension available from the App Store. So what are you waiting for? You don’t want to delay filing your taxes since an extension won’t extend your time to pay any tax liability and you may even get a tax refund. Plus you can quickly and easily file your taxes before the tax deadline so you can possibly enjoy the extra days given to file taxes doing something else. Previous Post What Are Job-Related Tax Deductions? Next Post Making Work Pay Credit – What Is It and Can… Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 10 responses to “Tax Extensions: Extension to File, Not Pay” I recently found out that I had received a 1099r and a 5498. I have never been made aware of this as an account was set up in my name by my ex husbands company. What are the tax ramifications of this. Thank you Reply I’m not that much of a onlibe reader to be honest but your blogs really nice, keep it up! I’ll go ahead and bookmark youur website to come back down the road. All the best Reply I owe money due to my student loans being in default but I have recently got on a payment plan to started paying them off….I also have talked to someone from the US Department of Education and asked them was my taxes going to be taken if I file they said yes….So my question is how do I file for an extention so that my taxes will not be taken?? Help please!! Reply I filed an extension last April. I live in the area impacted by Hurricane Isaac. Therefore the new date is January 11. I filed for an extension because I simply did not have the money to pay. I was hoping to get a better job before it was time to pay it. however, that has not happened. So now I owe $600 I cannot pay. I made a little over $25k in 2011. This year (2012) I made $29k before taxes. I just don’t have the money. Can I use Turbtax to file without paying (since I can’t)? Reply Hi Kelly, Yes, you can still file with TurboTax.TurboTax may walk you through tax deductions and credits that you didn’t know about so you may get a tax refund. Also see if you can ask the IRS for an installment agreement on the amounts you owe. Especially since you live in an area that was impacted by Hurricane Isaac. Read more about installment agreements here http://blog.turbotax.intuit.com/2012/10/15/owe-money-get-a-fresh-start-with-the-irs-fresh-start-initiative/ Thank you, Lisa Greene-Lewis Reply what I do not want to consult a tax professional for the 1099C and 982 with supporting documents to show insolvency? Can I still file electronicannly in turbotax and how? Reply Hi Samuel, No you do not have to consult a tax porofessional. TurboTax premier will properly fill out information regarding 1099-c and From 982. If you run into any problems we also have tax professionals available to answer your questions for free. You can go on line here http://turbotax.intuit.com/personal-taxes/ and start your tax return. Thank you, Lisa Reply How do I file for an extention? Reply Can I use the Turbo Tax software if I have to file form 982 and 1099R, 1099C Reply Hello Helen, All of those forms are supported by TurboTax. The Forms 982 and 1099-C represent very complicated areas of tax law that are sometimes accompanied by issues of bankruptcy and/or insolvency. If you have any such complicating factors, you might be best served by consulting a Tax Professional familiar with these situations. Thank you, Denise Elliott Reply Leave a ReplyCancel reply Browse Related Articles Tax Planning TurboTax Enables Refund Advance to Taxpayers Investments Tax Benefits of Real Estate Investing Self-Employed Business Tax Checklist: What You’ll Need When Filing Uncategorized What Is Deferred Compensation & How Is It Taxed? Investments How Does an Inherited IRA Work? 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I recently found out that I had received a 1099r and a 5498. I have never been made aware of this as an account was set up in my name by my ex husbands company. What are the tax ramifications of this. Thank you Reply
I’m not that much of a onlibe reader to be honest but your blogs really nice, keep it up! I’ll go ahead and bookmark youur website to come back down the road. All the best Reply
I owe money due to my student loans being in default but I have recently got on a payment plan to started paying them off….I also have talked to someone from the US Department of Education and asked them was my taxes going to be taken if I file they said yes….So my question is how do I file for an extention so that my taxes will not be taken?? Help please!! Reply
I filed an extension last April. I live in the area impacted by Hurricane Isaac. Therefore the new date is January 11. I filed for an extension because I simply did not have the money to pay. I was hoping to get a better job before it was time to pay it. however, that has not happened. So now I owe $600 I cannot pay. I made a little over $25k in 2011. This year (2012) I made $29k before taxes. I just don’t have the money. Can I use Turbtax to file without paying (since I can’t)? Reply
Hi Kelly, Yes, you can still file with TurboTax.TurboTax may walk you through tax deductions and credits that you didn’t know about so you may get a tax refund. Also see if you can ask the IRS for an installment agreement on the amounts you owe. Especially since you live in an area that was impacted by Hurricane Isaac. Read more about installment agreements here http://blog.turbotax.intuit.com/2012/10/15/owe-money-get-a-fresh-start-with-the-irs-fresh-start-initiative/ Thank you, Lisa Greene-Lewis Reply
what I do not want to consult a tax professional for the 1099C and 982 with supporting documents to show insolvency? Can I still file electronicannly in turbotax and how? Reply
Hi Samuel, No you do not have to consult a tax porofessional. TurboTax premier will properly fill out information regarding 1099-c and From 982. If you run into any problems we also have tax professionals available to answer your questions for free. You can go on line here http://turbotax.intuit.com/personal-taxes/ and start your tax return. Thank you, Lisa Reply
Hello Helen, All of those forms are supported by TurboTax. The Forms 982 and 1099-C represent very complicated areas of tax law that are sometimes accompanied by issues of bankruptcy and/or insolvency. If you have any such complicating factors, you might be best served by consulting a Tax Professional familiar with these situations. Thank you, Denise Elliott Reply