If you’re not ready for file your 2018 tax return by midnight on this Tax Day, our CPA says you do have options!
Dave Young of Young and Company discussed the Monday, April 15 deadline and what people must do Monday during News 8 at Sunrise.
“Today is the day if you either have to file or file for an extension, Young said. “I want to emphaszie the extension is just for you to file, not pay. So if you do have a tax liability, it needs to be paid by today. But if you need time to get all your information together, you can file for an extension.”
Young said there are several different ways to file for an extension. “You can go online for a free file on the IRS web site (irs.gov). There’s actually 12 commercial software carriers that have free software. You can use their software to file. You could actually just download the forms from the IRS and New York State. Download them, make a PDF and mail a check, and that’s one option. You can go right to the New York State web site (tax.ny.gov) and file an extension right online, that’s another option. One option is, if you have your own software, file an extension using that. Or, use your tax preparer and he or she can file an extension for you.”
If you’re self-employed, Young had some specific advice. “If you’re self-employed and you make quarterly payments and you file for an extension, what we normally advise our clients to do is take that first quarterly payment, that is also due today, and put that with your extension,” he explained. “That way if you have money left over, you can roll it in from 2018, into 2019. If you’re not self-employed, you’ll have other things to consider. Whoever is filing the extension is going to need to know how much money you made, what your expenses are. You basically have to do a rough draft of your tax return to figure out if you’re going to owe. You get all of that information together, so when you get that extension in, it’s going to be accurate. You need to have a good estimate of your tax liability for 2018 to get this extension done.”
Young said here’s what you’ll need to file an extension:
Your name (and spouse’s name if you’re filing jointly) and address
Your Social Security number (and spouse’s name if you’re filing jointly)
An estimate of your tax liability for 2018
Total of what you have already paid in 2018 (including withholding and estimated payments)
And the amount you’re paying with the extension, if anything.