Last Minute Tax Tips

Today TaxMama® wants to give you a few last minute tax tips.

NEWS FLASH! If you’re efiling today or tomorrow – ALSO put your tax returns on extension!
Why? Your efile might be rejected. If you’re not around to fix it, you will end up filing late.

Dear Family,

We have today and tomorrow to finish filing our tax returns.  If you’re not done yet, and can’t possibly gather the information accurately, don’t panic.  And definitely, don’t just make up numbers to get your tax return filed.

You can get automatic extensions – no questions asked. All you need to do is to file some forms.

1) Form 4868 is for extensions on personal tax returns. You get 6 whole months.

2) Form 7004 is used to extend partnerships, and LLCs filing as partnerships (Form 1065).  It’s also used for estate tax returns (for 1041). You get 5 more months on most forms. And if you’ve been giving gifts of $13,000 or more worth of money or property to your children or friends, Form 7004 also extends the gift tax return (Form 709) – for 6 months. Form 7004  is a catch-all form – so if you need an extension for anything else, take a look to see what else it covers.

3) Form 1127A – is a new form to give you time to PAY your taxes, if you fit certain criteria. You need to have either been unemployed, or your business profits have dropped by 25% or more. Your adjusted gross income was under $100,000 or $200,000 (married filing jointly). And you must owe less than $50,000. This form waives your late payment penalties for 6 months. But interest continues.

You can find more last minute tax tips at MarketWatch.com and the Equifax Personal Finance Blog.

And remember, you can find answers to all kinds of questions about extensions other tax issues, free. Where? Where else? At www.TaxMama.com.

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