Monday, April 16, 2012

Filed an Extension to File

I won't be ready to file our 2011 tax return on April 17, 2012.  So I mailed in form 4868 for an extension to file on Saturday.  Form 4868 extends the tax filing date to October 15, 2012.  However, form 4868 does not extend the date for paying taxes owed, which are still due on April 17, 2012.   We will avoid penalties and interest since we expect a refund and therefore, have over 90% of our 2011 actual tax liability already paid by April 17, 2012.  (If we owed money,  we would have sent in the expected payment with form 4868.)

My plan is to complete our tax return by the end of April since we are getting a big 2011 tax refund .  In 2013, I will plan to complete our tax return in February since we expect a big 2012 tax refund already.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial or tax advice. Please consult a professional advisor.

Copyright © 2012 Achievement Catalyst, LLC

1 comment:

Kurt @ Money Counselor said...

Glad to hear you've got a big refund coming. I'd just like to mention that for those who can't afford to pay what they owe by April 17, check out the IRS's Fresh Start initiative and form 1127A, "Application for Extension of Time for Payment..."