Are you waiting for the last possible moment to file your individual income tax return? Well, you are not alone. Approximately 25% of taxpayers file their tax returns during the final two weeks of the tax season. Another 1% or so will file their tax returns on Monday, April 15, 2013. Then there is the very large group that will request an extension to file their return by October 15, 2013.
Filing an extension is simple but remember that requesting an extension to file your return does not mean you get an extension to pay any outstanding tax liability. It simply means you avoid a financial penalty for filing the return after the due date. The penalty for underpaying your tax liability is 4.5% per month. Submit Form 4868 by April 15 to request the extension for late filing. Payment of your estimated tax liability can be submitted with the form.
Because of sequestration and the delay in the IRS completing certain tax forms, taxpayers claiming residential energy credits, depreciation of property or general business credits may receive some consideration in late payment of tax liability. Consult your CPA or tax advisor for details.
While taxes are on your mind, think tax deductions, tax deductions. Even as you contemplate filing your 2012 tax return, the time to file for tax year 2013 will be here before you know it. To keep from the need to hunt for last minute tax deductions, make a donation to Live Music Movement Foundation now. LMMF is a non-profit organization under Internal Revenue Code Sec. 501(c)(3). Gifts made are tax deductible to the extent allowed by law. Translation – if you itemize your deduction. If you take the standard deduction you don’t get a tax break but you will help to keep live music movin’.
Need some help to get going? Listening to music might just be the thing you need. Listen to a big band medley, a John Philip Sousa march such as the Stars and Stripes Forever. Once you get moving, listen to Sarah Vaughn to keep up the momentum. That’s what I do when I need a little push. It works every time.
Get busy and check back next Saturday, April 13, for last minute tax tips.