Posts Tagged ‘Form 1040’

An Extension of The Time To File Your Tax Return Is NOT An Extension of The Time To Pay Your Income Taxes!

Monday, March 28th, 2022

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

This is the time of year in which it’s almost time to “pony up” those unpaid income taxes for last year.  There could also be valid reasons in which you are not ready to file your tax returns – missing tax return information (still do not have your last W-2s, 1099-R or Schedule K- 1 s, etc.), the large amounts of funds that you need are not yet available, or your tax preparer has not met with you to review your tax returns).  There are also other reasons.  However, while the Tax Code does permit you to request a six-month extension of the time to file your tax returns, it does NOT allow for you to request or delay the “time to pay” your total prior year taxes after the statutory deadline.

Well, what other options are available to you?

a.  Borrow the funds from your business, friends, or relatives

b.  Use your credit card

c.   Obtain a short-term loan from your bank or financial institution

d.  Submit a request to the Internal Revenue Service to participate in an “Installment Agreement” [Form 9465 – Form 9465 (Rev. September 2020) (irs.gov) ]-Submit this completed form with your tax return.

To avoid having to pay late payment fees and penalties, you can also review the IRS “Safe Harbor Rules”

#1 –Actual 2021 Federal tax liability is within $1,000.00 of your total 2021 tax  deposits for combined withheld taxes and estimated tax deposits, or;

#2 – You have already deposited a total of 110% of your 2020 tax liability  or;

#3 –You pay 90% of your 2021 Federal tax liability on or before April 18th.

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Options For Paying Your Federal Income Taxes

Thursday, April 15th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

IRS Issue Number: Tax Tip 2021-50


Here’s how people can pay their federal taxes

The May 17 deadline for individuals to file and pay their federal income tax is fast approaching. While paying taxes is not optional, people do have options when it comes to how they pay taxes. The IRS offers a variety of ways to pay taxes.

Some taxpayers must make quarterly estimated tax payments throughout the year. This includes sole proprietors, partners, and S corporation shareholders who expect to owe $1,000 or more when they file. Individuals who participate in the gig economy might also have to make estimated payments. The deadline to pay estimated taxes remains April 15, 2021.

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Standard Deduction or Itemized Deductions?

Monday, February 22nd, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

Tax return deductions reduce the amount of taxable income when filing a Federal or state income tax return. In other words, using these deductions can reduce the amount of taxes that a taxpayer owes.

In most cases, taxpayers have a choice or option of either taking the “standard deduction” or “itemizing” their deductions. The standard deduction may be quicker and easier, but, itemizing your deductions may lower your income taxes more, in some situations. It’s important for all taxpayers to look into which deduction method is best before they file their income tax returns.

New this year
Following tax law changes, cash donations of up to $300 made by December 31, 2020 are deductible without having to itemize when people file a 2020 tax return.

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Are You Missing Required W-2 Forms??

Wednesday, February 9th, 2011

Unless you plan to request an automatic extension of the time required to file your 2010 Federal tax return (Form 4868 for Individuals, Form 7004 for Businesses), it will soon be time to file.  Additionally, the “4868” or “7004” do provide for an extension of the time to pay your taxes.   All of taxes which have not been paid still must be paid in full on or before March 15th or April 18th (this year), as applicable.

Certain forms will be required to be included with your Federal Form 1040.   If you are filing Form 1040 (PDF), attach all related schedules and forms behind your return in ascending order using  the sequence number which is located in the upper right hand corner of each  schedule or form.  Be sure to attach a copy of Forms W-2 and 2439 (Notice to Shareholders of Undistributed Long-Term Capital Gains) to the front of Form 1040.  If you received a Form W-2c (a corrected Form W-2), attach a copy of your original forms W-2 and any Forms W-2c.   Also attach Forms W-2G (Certain Gambling Winnings) and 1099R  (Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.) but only if any Federal taxes were withheld.

There are procedures which you should follow if you have not already received your W-2 form or have misplaced any (Recommendation – don’t wait until the last minute to make this determination – this process may require two-four weeks):  (more…)