Believe it or not, Uncle Sam via the IRS is cutting you a little slack this year. Because of how the calendar lines up, taxes are due April 18, 2017 – meaning you have one additional weekend to get everything in ordered and filed with the government.
Getting an Extension
If that’s still not enough time, you do have the option to file for an extension, however, please note that an extension applies ONLY to the paperwork. You still have to send the IRS your estimated tax payment by April 18. It is possible to arrange for payment plans. Those are handled on a case-by-case basis and, of course, require additional paperwork.
If you do apply for a filing extension, your entire filing package must be on its way to the IRS by October 16, 2017.
Small Business Owners and Quarterly Payments
Being self-employed has lots of benefits. One of the challenges, though, is taxes. Instead of filing once a year like your employed by “the man” neighbors, you need to file quarterly taxes. This is done using the same 1040 form, but it’s done once a quarter to encompass earning the previous quarter.
If you do happen to save it all until April, you’ll pay a penalty that’s a percentage of your total income. Depending on how much you earn yearly, this may or may not be acceptable. Check with your accountant before making any decisions.
Uncle Sam does try to take your life situation into account. If you live in an area that’s been hit with a disaster, such as a weather event or other act of God, the IRS may give you an extension. You can find out more here. In addition, tax software such as TurboTax often has this information programmed into it.
Also, if you’re living out of the country at the time your taxes are due, Uncle Sam will automatically grant you a two-month extension to file…but he’ll expect you to pay interest on any tax due at the regular deadline.
Getting It Organized
Hopefully you’ve been tracking tax related information all year long. If not, now’s the time to start getting it all organized. Working with a professional – like me – can help relieve a lot of the stress involved in this task. Most importantly, check with your accountant or another tax professional if you have any questions.