Retirement Daily’s Robert Powell caught up with Jeffrey Levine, CPA and tax professional from Buckingham Strategic Wealth Partners to offer some suggestions for taxpayers who requested an extension to file their 2021 tax return.
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Recommended Read: Understanding Tax Extensions
Tips for Those Who Requested an Extension
- Know that an extension of time to file just isn’t an extension of time to pay
- Organize your paperwork and get them to your tax skilled as quickly as doable
- If you file quarterly tax funds, you’re chargeable for your earlier 12 months’s tax legal responsibility and persevering with to make estimated tax funds
Quotes| Tips for Taxpayers Who Requested an Extension
Jeffrey Levine, Chief Planning Officer, Buckingham Strategic Wealth
Jeffrey Levine, Chief Planning Officer, Buckingham Strategic Wealth
Video Transcript| Jeffrey Levine, CPA and Tax Expert, Buckingham Strategic Wealth
Robert Powell: Are you among the many tens of millions of taxpayers who requested an extension to file your 2021 tax return? Well, right here to speak tax suggestions with me about that matter is Jeffrey Levine from Buckingham Wealth Partners. Jeffrey, what can these of us do?
Recommended Read: How to File a Tax Extension
Jeffrey Levine: Well, these of us embody me. So the very first thing is ensuring that you realize that an extension of time to file just isn’t an extension of time to pay. All too typically, individuals who haven’t filed an extension earlier than do not realize that. And then they find yourself having a big quantity of both curiosity and/or penalties once they in the end pay that tax invoice. So, if you have not paid already, pay that as quickly as doable. Stop the penalties and curiosity from accruing.
Beyond that, I’d additionally say that as human beings, we are likely to push off and delay issues, and typically folks file their extension, and swiftly, they give the impression of being up and it is October 14. And they’re panicking as a result of they have in the future left and you’ll’t file one other extension. You cannot transcend that. So in case you are on an extension proper now attempt to get your issues collectively, for a lot of of us, summer time tends to be a slower time, with extra trip time, and a bit little bit of time away. Take a couple of hours out of that freedom you could have and put your stuff collectively. Get it to your tax skilled as quickly as doable. This method, you may get this executed and off your plate and spend your time and brainpower specializing in stuff you may get pleasure from a bit bit extra.
Robert Powell: So if by likelihood you additionally file quarterly estimated tax funds, submitting an extension doesn’t suggest you do not have to file these quarterly estimated both. Is that proper?
Jeffrey Levine: That’s proper, you have to each pay to your earlier 12 months’s tax legal responsibility, in addition to proceed to make your estimated taxes. And what is usually a little little bit of a problem there may be that many individuals make their present 12 months estimated tax funds based mostly on the earlier 12 months’s taxes. And if you have not filed final 12 months’s return, you could not know precisely what that’s. So you are again to the guessing sport as soon as once more.
Editor’s Note: The content material was reviewed for tax accuracy by a TurboTax CPA knowledgeable.
Zach Faulds contributed to the writing of this text and produced the video and/or the graphics related to it.
Source: www.thestreet.com”