With April 15, 2009 only 29 days away, I've decided to file form 4868 for an automatic extension of the due date to October 15, 2009. However, filing form 4868 does not extend the time to pay any taxes owe. Therefore, I will still need to do an estimate of our tax liability for 2008, and send any amount owed to the IRS by April 15, 2009.
Unlike previous years, we won't need to send in a payment with our request for extension. This year, I expect that we will be getting a refund from both the IRS and our state. 2008 was our first year paying estimated taxes, and to ensure avoiding any penalties, I was conservative and paid estimated taxes at the higher end of the range.
Another difference from previous years is that we have not yet made our 2008 contributions to our IRAs. Even with an extension, we will still need to make our 2008 IRA contributions by April 15, 2009.
For more on Ideas You Can Use, check back every Tuesday for a new segment.
Photo Credit: morgueFile.com, jppi
This is not financial or tax advice. Please consult a professional advisor.
Copyright © 2009 Achievement Catalyst, LLC
Unlike previous years, we won't need to send in a payment with our request for extension. This year, I expect that we will be getting a refund from both the IRS and our state. 2008 was our first year paying estimated taxes, and to ensure avoiding any penalties, I was conservative and paid estimated taxes at the higher end of the range.
Another difference from previous years is that we have not yet made our 2008 contributions to our IRAs. Even with an extension, we will still need to make our 2008 IRA contributions by April 15, 2009.
For more on Ideas You Can Use, check back every Tuesday for a new segment.
Photo Credit: morgueFile.com, jppi
This is not financial or tax advice. Please consult a professional advisor.
Copyright © 2009 Achievement Catalyst, LLC
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