Category Archives: Form 4868

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Tax Tips for Self-employed Individuals

If you are in business for yourself, or carry on a trade or business as a sole proprietor or an independent contractor, you generally would consider yourself self-employed and you would file IRS Schedule C, Profit or Loss From Business or Schedule C-EZ, Net Profit From Business with your Form 1040.

Here are six things the IRS wants you to know about self-employment:

  1. Self-employment can include work in addition to your regular full-time business activities, such as part-time work you do at home or in addition to your regular job.
  2. If you are self-employed you generally have to pay Self-employment Tax. Self-employment tax is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. You figure SE tax yourself using a Form 1040 Schedule SE. Also, you can deduct half of your self-employment tax in figuring your adjusted gross income. Continue reading →

Why e-file an Extension?

The answer is easy; you want to avoid extra charges.

Your income tax return is due on April 18, 2011. Late charges may add as much as 50% to your tax bill.

If you don’t file your tax return by that date, then you will be subject to Late Filing Penalties and interest.

These penalties can cost you hundreds and often thousands of dollars. The normal penalty for late filing is 4.5% of tax owed for each month or part thereof; or up to 22% total over five months. The minimum for over 60 days late on your tax return, is the lesser of $100 dollars or 100 percent of tax owed.

By filing an extension, you will avoid Late Filing Penalties. Our fee is considerably less than those potential penalties you may incur. Not to mention the peace of mind that our service provides to you.

Therefore, you can easily determine and understand the benefits of filing your own tax extension through our service. Late Penalties are normally one half of the tax owed for each month, or part of a month, alternatively the 25% maximum penalty is applied.

If your taxes are unpaid 10 days after the IRS issues a notice of levy, the half of one percent increases to one percent. Individuals who file by the return due date, will be charged one quarter percent for any month in which an installment is in effect.

In general the interest is calculated on any unpaid balance from the due date of your tax return until the date of payment. This interest rate is the federal short-term rate plus three percent, which is determined every 3 months.

Note: Please visit www.IRS.gov for updated penalties and interest details for 2011.

File your taxes after April 15!

Did you know you can file your taxes after April 15? It’s easy, just e-file a tax extension (Form 4868 or Form 7004), and receive confirmation in a few hours only at www.ExtensionTax.com

The IRS doesn’t ask for a reason for the extension–it’s called an Automatic Extension of Time, so an overwhelming majority of requests are approved. You can e-file for an extension in less than ten minutes online.

E-filing is the way to go. It’s quick, easy and it is more secured. Try today and get your time to file taxes after April 15th.

Get up to a 6 month Tax Extension automatically!

It’s inevitable: You’re fairly sure you’re going to have all your tax documentation together, and then something goes wrong. You don’t receive all your tax forms, you’ve misplaced a receipt, or you’re otherwise unable to file your return by the due date.

If you need more time to prepare your federal tax return, you’ll need to file an extension.

To get started, you need the following information:

  1. Your personal details, including your Social Security number, address, and the name and taxpayer ID number of your spouse.
  2. A copy of your 2009 tax return.
  3. A list of tax payments made in 2009.

If your tax situation hasn’t changed since last year, you can use your 2009 tax return to estimate your tax liability. You’ll find your total tax liability from 2009 on line 60 for the form 1040, line 37 for form 1040A, and line 11 for form 1040EZ. Subtract any payments you’ve made throughout the year and report your balance due on line 6 of the extension form. Ideally, if you owe a balance, you’ll pay at least that much along with your extension to avoid a potential penalty.

To prepare and file the extension for your federal income tax return, you’ll need to select a method:

File a paper extension. Most taxpayers are eligible for an automatic 6-month extension of time to file. To get the extension, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Income Tax Return, by April 18, 2011. Assuming you file on time, you’ll be extended through Oct. 15. A longer extension may be granted if you’re living out of the country.

File online. You can apply for an extension by filing form 4868 online through www.ExtensionTax.com an e-file service provider. If you want to make a payment with your online filing, you can pay by electronic funds withdrawal or send a check to the IRS. The extension for time must be filed before the end of day on April 18.

www.ExtensionTax.com is an IRS approved e-file provider who is a BBB accredited business with A+ certification. ExtensionTax.com has a LIVE Support Center available at 1-866-245-3918 or simply write your queries to support@ExtensionTax.com

Top 10 Tax Time Tips!!!

It’s that time of the year again, the income tax filing season has begun and important tax documents should be arriving in the mail. Even though your return is not due until April, getting an early start will make filing easier. Here are the Internal Revenue Service’s top 10 tips that will help your tax filing process run smoother than ever this year.

  1. Start gathering your records Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.
  2. Be on the lookout W-2s and 1099s will be coming soon; you’ll need these to file your tax return.
  3. Use Free File: Let Free File do the hard work for you with brand-name tax software or online fillable forms. It’s available exclusively at http://www.irs.gov. Everyone can find an option to prepare their tax return and e-file it for free. If you made $58,000 or less, you qualify for free tax software that is offered through a private-public partnership with manufacturers. If you made more or are comfortable preparing your own tax return, there’s Free File Fillable Forms, the electronic versions of IRS paper forms. Visit www.irs.gov/freefile to review your options. Continue reading →