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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29569
Experience:  Taxes, Immigration, Labor Relations
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Please help me!!! I am worried I won't finish my taxes on time.

Customer Question

Please help me!!! I am worried I won't finish my taxes on time. I read you can file an extension form but you have to know how much you owe, but wouldn't I have to complete my taxes anyway to know how much I owe? Can I just pay a random amount say $500 and hope that will be enough?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Need more time to prepare your federal tax return? You can also get an extension by paying all or part of your estimated income tax due and indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card. This way you won’t have to file a separate extension form and you will receive a confirmation number for your records.If you choose to file for the extension - use Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return .. Please be aware that an extension of time to file your return does not grant you any extension of time to pay your taxes. April 18 is the deadline for most to pay taxes owed and avoid penalty and interest charges.If you are not sure what is your tax liability - you may estimate and and pay a little more to avoid penalty - but if overpaid - when you will file your tax return - there will be refund.
Customer: replied 1 year ago.
HOW DO I ESTIMATE?
Expert:  Lev replied 1 year ago.
The most simple way to use a tax calculator.For instance - https://www.hrblock.com/get-answers/tax-calculators.html Let me know if you need help to vavigate.
Customer: replied 1 year ago.
Yes PLEASE. I am having a panic attack. I have an income of $26,000 so total tax owed is $2400 but I am very confused because that is not the amount I pay right? The "liability"??
Expert:  Lev replied 1 year ago.
Is that income from wages OR from self-employment?How that income is reported?Do you have any income tax withholding?
Customer: replied 1 year ago.
Ok I finally answered my own question that this info is on my W-2 form. using that site it says i am getting a refund of $300, so i guess that means I don't owe anything and I should be able to just send in the form and get an extension right without having to pay anything?
Expert:  Lev replied 1 year ago.
I will verify your calculation, but please clarify - if you have any dependents?
Customer: replied 1 year ago.
no i don't those are wages, filing single with no dependents
Customer: replied 1 year ago.
What other info do I need for the form? Does it take a long time to file or can I just do that now?
Expert:  Lev replied 1 year ago.
So far - your Adjusted Gross Income (AGI) $26,000MINUS Standard Deduction $6,300MINUSPersonal Exemptions $4,000= taxable income $15,700-- calculated income tax liability $1,894MINUS withholding - from W2 box 2so if withholding is larger - please verify - you would be getting a refund.
Customer: replied 1 year ago.
no that is wrong. my income was $22664. Tax withheld is 1685. My state income tax is 883.
Customer: replied 1 year ago.
i think i will try to fill out the form now.
Expert:  Lev replied 1 year ago.
Let me correct calculations...Adjusted Gross Income (AGI) $22664MINUS Standard Deduction $6,300MINUS Personal Exemptions $4,000= taxable income $12,364-- calculated income tax liability $1,393MINUS withholding - from W2 box 2 $1685so you are correct - you would be getting a refund $292.No need to pay anything to the IRS.Your return must be very simple - and you still have 10 days to complete - so I think you will be able to file on time.
Customer: replied 1 year ago.
ok but i feel anxious and prefer to file the extension anyway
Expert:  Lev replied 1 year ago.
That is perfectly file.You may file an extension and that will make any bad. - use Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return .https://www.irs.gov/pub/irs-pdf/f4868.pdfBased on your estimation - there is nothing you need to pay with extension application.
Customer: replied 1 year ago.
yes i just did online. not going to mail it in. that takes too long
Customer: replied 1 year ago.
can you please help me understand better though if they did not get my extension or i did not finish what would happen? i read that you get a 5% fine of the amount you owe. Since I have a refund would I still get a fine of some kind? Would I get a letter from the IRS?
Expert:  Lev replied 1 year ago.
As long as you will NOT have any tax liability - there will NOT be any penalty.5% late filing penalty is based on teh amount of tax not paid by the filing deadline.AS in your situation - you will be getting a refund - and will NOT owe any taxes - the penalty is not an issue.So filing a request for the extension will not provide any benefits.Regardless if you file for the extension or not - there will NOT be penalty if you are getting a refund.Most likely - based on information from your W2 form the IRS system already "knows" that you are entitled a refund - and you will not get any letters from the IRS..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.