I just noticed I commented before, but I had to rewatch because I did the extension today using your tip. I thought it was funny that you knew you left that gem deep in the video for us.
Thanks so much for taking the time to rewatch the video and for leaving a comment! I'm really glad to hear that the tip helped you out with your extension. Yes, I like to sprinkle in a few gems throughout my videos for the attentive viewers like yourself. It's always rewarding to hear when someone finds those little nuggets of information useful. Don't hesitate to reach out if you have any more questions or if there's a specific topic you'd love to see covered in future videos. Your feedback is invaluable as it helps me create content that truly makes a difference for my audience. Thanks again for your support, and I hope you keep finding value in my videos!
What if someone has been unemployed and have no income coming in to pay? I haven't worked since September and been in the hospital and haven't been making money. I filed an extension to give me more time to get the money to pay but if it doesn't matter since I missed the deadline now what?
I'm sorry to hear about your situation. Since filing an extension doesn't delay the payment due date, you might face some penalties. However, you should try and file your taxes as soon as you can. Best of luck!
What is the $1 payment on form 4868 do? It doesn't mean you have more time to pay, because you've said repeatedly that the extension isn't an extension to pay.
It's an alternative way to file an extension online using the IRS website. Without the $1 payment, there is no option to file an extension online using the IRS website. It's a bit of a 'hack' if you will.
I am an american citizen and I live Germany (no, I am not in the military). I need an extension till october once I did not finish my german taxes. Is it enough filing only the the Form 4868? I am pretty sure my small online business finished 2022 in minus. Hoping to hear from you, thanks.
So whats the difference between filing an extension and just not filing your taxes months after the due date then? If the penalties still exist, why care?
The late filing penalty for individuals who do not file their federal income tax return by the due date (including extensions) is generally 5% of the unpaid taxes for each month or part of a month that a tax return is late. This penalty starts accruing the day after the tax filing due date and will not exceed 25% of your unpaid taxes.
Just to clarify, when filing an extension for (let's just say, my elderly mother), "pay 100% of the prior year tax"...where would I locate that amount on last year's tax document? I'm unsure if she's has to pay or may be due a refund (she's retired) but her taxes involve more than I can handle so the extension will buy me time to find a tax professional. In the meantime, hope you've got some info & advice to keep us legal at least by 4/15.
Would I (my mother) be penalized in any way if we used dollar amounts from last year's extension paperwork (as our estimates) in order to file this year's extension? [Instructions caution if the estimate is not reasonable, it would void the extension.] I'm unsure if I have all her necessary documents to accurately estimate her tax amounts for filing at this time, so what would you suggest I do to prepare the most educated and reasonable amount to file the extension?] Mom's always had professional tax preparation services & when they closed up, it sure complicated things for us.
What if you file for an extension (4868) and you estimate a smaller amount and pay it before April 15th. Will you owe a penalty when the IRS calculates a bigger amount ??
Very helpful video, thanks, Sir. Quick question: If IRS owes you money on your taxes because of kids, etc, will filing an extension affects that money?
@@NoelLorenzanaCPA hello what do you mean interest? I am also expecting , most likely, a refund from the IRS. Do I need to file an extension or not necessary?
We owed $15k for the previous tax filing (2022). For 2023, with other deductions and less income, my tax person calculated that we will owe $5k. If I want to file an extension, will I pay $5k? Should I pay it on the IRS site?
@@NoelLorenzanaCPA We did not pay quarterly taxes and usually incur a bill to pay it with a small fine. Do I need to add any estimated quarterly tax fines into the IRS payment when I file the extension? $5k taxes plus fines, etc? Thanks Noel!
Didn’t pay any etp for the whole current year. But paid 100% taxes owed of the prior year before April 15th. Any penalties or interest? Based on this video no, but just to make sure.. Because you didn’t mention anything about etp
@@NoelLorenzanaCPAso then it would make sense. This video is for average taxpayer. Because for single member llc for example, it’s mandatory to pay etp each quarter to avoid penalties and interest. Am I correct?
@@Vrie. I was referring to etp, not to filing taxes and I think it’s mandatory on a federal level to make that quarter payments to avoid penalties and interest
@@NoelLorenzanaCPA If I go see a tax preparer like HR block , do they need money on top of the fee they charge? sorry for my lame questions! I just need to know.
Hi there, I’m kinda lost on the paying just a $1 pro tip, but I decided to use my turbo tax amount that they gave me and pay that (fed. I get a refund and state I owe) turbo tax wanted to charge $200 so will I be able to file for free on the irs website with my extension?
i think i fckd up, i did some calculation and I think the IRS owes a refund of a total of 1200, so when I filed for an Extention I added 700 in Tax Liabilities. I wonder they subtract that amount out of what they owe me, if so what can I do I did this on the 15, 11:40 barely had any time
I am waiting for my employer to correct my W-2 so I will probably need to file for extension. Should I just try my best to estimate what I owe and **intentionally overpay** a bit just in case, then file for extension, and I will get refund from IRS if I actually overpay in the end? I feel like this way is the best way cuz it gives me more time to wait for the corrected W-2, and also avoid the penalty for late payment. Is my understanding correct?
@@NoelLorenzanaCPA when I make a payment on irs.gov/payments and select “Extensions”, the payment is also meant for my tax return right? For example, suppose I estimate to owe 5k in tax, I would select “extension” then pay 5k. That 5k is meant to pre-pay my tax, right? Not that I’m spending 5k just to have an extension? Asking because in the video, you said pay $1 only, which makes me think that I am just paying for the extension fee, and that $1 doesn’t go to my tax return payment at all
I’m a single member LLC and didn’t pay anything for the past few years but I think I might owe this year, although I’m not sure. Can I just pay $1 also is it too late to file the extension?
@@NoelLorenzanaCPA that’s my dilemma. I have absolutely no idea. I didn’t have to pay last year and I don’t think my circumstances changed too much but I wanted to prepare just in case I might have to pay.
I had my taxes prepared and I have to pay this year. I was assuming that if I extended my filing, I would have time to send in the money that I owe. However, you are saying that I would be penalized doing this? BTW...I HATE BIDEN and his idiotic dem policies.
I totally hear your concerns, especially on the border issues, which needs fixing asap. Yes, extending your tax filing doesn't extend the deadline to pay what you owe, so it’s crucial to pay what you owe by 4/15 to avoid penalties. It’s a common mix-up! If paying by the deadline is tricky, the IRS does offer payment plans. Hope this helps clear things up!
Check out my Tax Preparation Checklist to make the most of your tax savings!
www.noellorenzanacpa.com/tax-prep-checklist
That seems so backwards. How would you know what you owe if you couldn’t file your taxes on time and thus the reason you are asking for an extension
Yeah, that part is what trips up a lot of people.
The tip was definitely worth the wait hahaha! Thank you.
I just noticed I commented before, but I had to rewatch because I did the extension today using your tip. I thought it was funny that you knew you left that gem deep in the video for us.
Thanks so much for taking the time to rewatch the video and for leaving a comment! I'm really glad to hear that the tip helped you out with your extension. Yes, I like to sprinkle in a few gems throughout my videos for the attentive viewers like yourself. It's always rewarding to hear when someone finds those little nuggets of information useful.
Don't hesitate to reach out if you have any more questions or if there's a specific topic you'd love to see covered in future videos. Your feedback is invaluable as it helps me create content that truly makes a difference for my audience.
Thanks again for your support, and I hope you keep finding value in my videos!
Dude thank you so much for this video. All my stress just disappeared
My pleasure! Thanks for watching
So can I put $1 on line 7 and avoid the late filing penalty? Thanks
What if I am late filing my taxes and the preparer didn’t file an extension, but I don’t owe IRS . Thank you awaiting your reply.
Then you have nothing to worry about 😉
I understand that if you overestimate you’ll get it back in a refund. What happens if you underestimate and need to pay more?
You will owe the balance due when you file your return. Depending on the amount you could receive a deficiency notice for a late payment penalty.
Thank you 🙏🏻 Very nicely laid out!
So nice of you to say. Thank you!
What if someone has been unemployed and have no income coming in to pay? I haven't worked since September and been in the hospital and haven't been making money. I filed an extension to give me more time to get the money to pay but if it doesn't matter since I missed the deadline now what?
I'm sorry to hear about your situation. Since filing an extension doesn't delay the payment due date, you might face some penalties. However, you should try and file your taxes as soon as you can. Best of luck!
What is the $1 payment on form 4868 do? It doesn't mean you have more time to pay, because you've said repeatedly that the extension isn't an extension to pay.
It's an alternative way to file an extension online using the IRS website. Without the $1 payment, there is no option to file an extension online using the IRS website. It's a bit of a 'hack' if you will.
Can it be deducted through your taxes like you would with an accountant
@michaelleonard1491 any estimated tax payments would need to be noted on your taxes, so don’t forget to include any amounts paid with the extension
@@NoelLorenzanaCPA and irs.gov allows for this ?
How much and when will the penalties show up? If I pay in full just 2 days late.
I’m not exactly sure. There’s a possibility that no penalty will be calculated. Let us know!
Very helpful. Thanks u
My pleasure!
Helpful vid! Thanks
My pleasure! Thanks for watching
I am an american citizen and I live Germany (no, I am not in the military). I need an extension till october once I did not finish my german taxes. Is it enough filing only the the Form 4868? I am pretty sure my small online business finished 2022 in minus. Hoping to hear from you, thanks.
It's too late to file for a 2023 tax extension, unfortunately. It's best to file your return asap.
When fiing an extention Why pay anything in areas when the IRS will end up owing you
Yes, if you’re due a
refund, then an extension isn’t necessary.
I ain’t paying the irs a dollar until Biden is out of office
Ha ha, I hear you. It's going to be a close one.
No you're just broke
@@AL-sn7no yeah that too lol😂 thanks to Biden
Bidenomics
@AffectionateArcticWolf-up5xn ha ha!
So whats the difference between filing an extension and just not filing your taxes months after the due date then?
If the penalties still exist, why care?
Good question. It’s to avoid the late filing penalty. As you noticed the late payment penalty applies either way.
@@NoelLorenzanaCPA okay so whats the difference between late payment penalties and late filing penalty? Cost wise.
@@NoelLorenzanaCPATT had a great question what is the difference? thank you for your reply
The late filing penalty for individuals who do not file their federal income tax return by the due date (including extensions) is generally 5% of the unpaid taxes for each month or part of a month that a tax return is late. This penalty starts accruing the day after the tax filing due date and will not exceed 25% of your unpaid taxes.
@@NoelLorenzanaCPA that is fucking criminal…
Just to clarify, when filing an extension for (let's just say, my elderly mother), "pay 100% of the prior year tax"...where would I locate that amount on last year's tax document? I'm unsure if she's has to pay or may be due a refund (she's retired) but her taxes involve more than I can handle so the extension will buy me time to find a tax professional. In the meantime, hope you've got some info & advice to keep us legal at least by 4/15.
Locate last year’s tax return. Go to page 2 of form 1040. Find the line ‘Total Tax’. Then compare that to what she has paid in for 2023 taxes.
Would I (my mother) be penalized in any way if we used dollar amounts from last year's extension paperwork (as our estimates) in order to file this year's extension? [Instructions caution if the estimate is not reasonable, it would void the extension.] I'm unsure if I have all her necessary documents to accurately estimate her tax amounts for filing at this time, so what would you suggest I do to prepare the most educated and reasonable amount to file the extension?] Mom's always had professional tax preparation services & when they closed up, it sure complicated things for us.
@HappiCuzImFluffie I wouldn’t worry about it too much. Just estimate as best you can and hope for the best.
What if you file for an extension (4868) and you estimate a smaller amount and pay it before April 15th. Will you owe a penalty when the IRS calculates a bigger amount ??
Yes, theoretically you could be assessed a penalty.
Are you charged monthly a fee after you do an extension until you submit your taxes?
Typically not, unless if your tax professional uses a subscription based pricing model. In that case a monthly fee would be normal.
In case you are a non resident alien owner of a single member LLC (needs proforma 1120/5472) do you file an extention with form 7004 or 4868 or both?
Not enough information. What tax returns are you required to file?
So for a 1099 as a sole proprietor or llc. I can use a 4868 ?
Yes
Very helpful video, thanks, Sir. Quick question: If IRS owes you money on your taxes because of kids, etc, will filing an extension affects that money?
In your example, filing an extension would not change a thing except that the IRS might owe you interest. Thanks for watching!
@@NoelLorenzanaCPA hello what do you mean interest? I am also expecting , most likely, a refund from the IRS. Do I need to file an extension or not necessary?
@@legalprodefense4991 For individuals, if you're due a refund, then no extension is necesssary.
@@NoelLorenzanaCPA even if I am 1099 not W-2?
We owed $15k for the previous tax filing (2022). For 2023, with other deductions and less income, my tax person calculated that we will owe $5k. If I want to file an extension, will I pay $5k? Should I pay it on the IRS site?
@NoelLorenzanaCPA
Yes, you can pay the $5K on the IRS website at irs.gov/payments. Select 4868 (extension), and tax year 2023.
@@NoelLorenzanaCPA We did not pay quarterly taxes and usually incur a bill to pay it with a small fine. Do I need to add any estimated quarterly tax fines into the IRS payment when I file the extension? $5k taxes plus fines, etc? Thanks Noel!
Didn’t pay any etp for the whole current year. But paid 100% taxes owed of the prior year before April 15th. Any penalties or interest?
Based on this video no, but just to make sure.. Because you didn’t mention anything about etp
The penalty calculation is not that simple, unfortunately. For the average taxpayer situation, I think you’d be okay.
@@NoelLorenzanaCPAso then it would make sense. This video is for average taxpayer. Because for single member llc for example, it’s mandatory to pay etp each quarter to avoid penalties and interest. Am I correct?
Yes, that is correct.
@@Dvegastyle I have an LLC in California- quarter tax filing is optional
@@Vrie. I was referring to etp, not to filing taxes and I think it’s mandatory on a federal level to make that quarter payments to avoid penalties and interest
Will apply online for a tax extension show up on your your credit report on getting a mortgage? If I put $1 down how much longer do I have to pay
It would not affect your credit report.
@@NoelLorenzanaCPA Thanks How much time do we have to make payments? I'll pay it off in a couple months.
Your payment was technically due on 4/15. Pay it off as soon as you can
@@NoelLorenzanaCPA If I go see a tax preparer like HR block , do they need money on top of the fee they charge? sorry for my lame questions! I just need to know.
They might have miscellaneous fees. It's best to check with them directly.
Can you file for an extension if you are a W2 employee and have a single member LLC? If so, which form would I use?
Yes, form 4868.
@@NoelLorenzanaCPA Would you submit 2 forms? 1 for yourself and 1 for the llc?
@@gordong.5154if the LLC is taxed as a single member LLC, then only need to do the individual extension.
@@NoelLorenzanaCPA Thank you very much for the fast response!
Hi there, I’m kinda lost on the paying just a $1 pro tip, but I decided to use my turbo tax amount that they gave me and pay that (fed. I get a refund and state I owe) turbo tax wanted to charge $200 so will I be able to file for free on the irs website with my extension?
Unfortunately you can’t file your tax return on the IRS website. They do have some free file options
@@NoelLorenzanaCPA thank you for your quick response!! Appreciate your help!
i think i fckd up, i did some calculation and I think the IRS owes a refund of a total of 1200, so when I filed for an Extention I added 700 in Tax Liabilities. I wonder they subtract that amount out of what they owe me, if so what can I do I did this on the 15, 11:40 barely had any time
I am waiting for my employer to correct my W-2 so I will probably need to file for extension. Should I just try my best to estimate what I owe and **intentionally overpay** a bit just in case, then file for extension, and I will get refund from IRS if I actually overpay in the end?
I feel like this way is the best way cuz it gives me more time to wait for the corrected W-2, and also avoid the penalty for late payment. Is my understanding correct?
Yes, that sounds like a great plan!
@@NoelLorenzanaCPA when I make a payment on irs.gov/payments and select “Extensions”, the payment is also meant for my tax return right?
For example, suppose I estimate to owe 5k in tax, I would select “extension” then pay 5k. That 5k is meant to pre-pay my tax, right? Not that I’m spending 5k just to have an extension?
Asking because in the video, you said pay $1 only, which makes me think that I am just paying for the extension fee, and that $1 doesn’t go to my tax return payment at all
Yes, that is correct. The $1 does go towards your tax bill, so people shouldn’t forget that 😌
I’m a single member LLC and didn’t pay anything for the past few years but I think I might owe this year, although I’m not sure. Can I just pay $1 also is it too late to file the extension?
It’s not too late. Monday is the last day.
@@NoelLorenzanaCPA thank you.
If you think you might owe, you should consider paying what you think you might owe.
@@NoelLorenzanaCPA that’s my dilemma. I have absolutely no idea. I didn’t have to pay last year and I don’t think my circumstances changed too much but I wanted to prepare just in case I might have to pay.
@user-rg4ds6xw4o If you overestimate, you would get the money back as a refund when you file your return.
Can I still file tax return before the deadline if I’ve already filed an extension?
Yes, that's not a problem.
@NoelLorenzanaCPA So can I put $1 on line 7 and avoid the late filing penalty? Thanks
@nedschneebly5650 are you doing it online or by mail?
@NoelLorenzanaCPA I plan on doing it online. But am probably still able to do it by mail.
@nedschneebly5650 just do it online and pay $1 in estimated amount
I had my taxes prepared and I have to pay this year. I was assuming that if I extended my filing, I would have time to send in the money that I owe. However, you are saying that I would be penalized doing this? BTW...I HATE BIDEN and his idiotic dem policies.
I totally hear your concerns, especially on the border issues, which needs fixing asap. Yes, extending your tax filing doesn't extend the deadline to pay what you owe, so it’s crucial to pay what you owe by 4/15 to avoid penalties. It’s a common mix-up! If paying by the deadline is tricky, the IRS does offer payment plans. Hope this helps clear things up!
@@NoelLorenzanaCPA Thank you!