Have You Completed Your Income Taxes or Will You File an Extension?

Self Employed TAX Solutions Book by June Walker

Have you completed your taxes?  I’ll be filing an extension.   For all of my life until a couple of years ago I’ve always filed before April 15th.  Always.  But since Mr. A has his own business, and I have a few side gigs I have decided I will take my time instead of trying to rush and get everything done.

I prefer to use H&R Block At Home Premium + State 2011 and this year I bought the electronic download version.  I have completed my son AJ’s taxes since his are straight forward, even though he does have a full time job and side gig.

One of the reasons I have decided it is okay to file an extension (well, it is okay and perfectly fine to file an extension but the perfectionist in me would like me to be done ON TIME and not file an extention) is because I read the book pictured above by June Walker Self-employed Tax Solutions, 2nd: Quick, Simple, Money-Saving, Audit-Proof Tax and Recordkeeping Basics for the Independent Professional.  Mrs. Walker is a tax accountant for entrepreneurs and she actually encourages us to file an extension so that we can take our time in getting our taxes completed properly.  Sometimes I’m very impressionable and Mrs. Walker’s rationale sounded good to me.

I sat down last weekend to make sure we did not owe anything.  Mr. A’s business did very terribly last year, and I was sure we would get a refund, since I’d made estimated payments based on my estimation that he would net at least $9000.    When I put my W2 information, we had a refund coming our way, since I also pay extra in with my paycheck so that we don’t have to come up with as much estimated payments.  As I got to the self-employment section I put in Mr. A’s gross, and now we owed money.  But then I started putting in materials and mileage, and office supplies, and everything else and I expected to see the amount owed turn into a refund, but it didn’t.  I was alarmed!  This meant I was going to have to get much more serious about looking at our taxes and RIGHT now because this meant we were going to have to come up with a payment by today.

I was so distraught I told Mr. A that I had to go lie down for awhile.  When I had calmed down I got back on the computer and that was when I realized I just hadn’t gone far enough through the process because now the program showed we were getting a refund again.

I’m not happy about my money sitting there, so I’m not going to wait a full six months to finish our taxes, but I am glad for the option to file an extension for the time being.

So what about you?  Are you all done?

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7 comments to Have You Completed Your Income Taxes or Will You File an Extension?

  • I am done and I owe $1,200 (net)! I prefer a small refund, but this is not too bad.

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  • Just an FYI that an extension is an extension to FILE, not an extension to pay. Thus if you owe and pay at the end of the six month extension, you get hit with a late payment penalty, but not the late filing penalty.

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    Kellen Reply:

    From my reading of this post, Mrs. Accountability seems perfectly aware that she needs to pay by April 15th – that’s why she was doing a quick check to make sure that they had paid enough during the year, along with filing the extension… If you read her post, when she realized they may not have paid enough in estimated taxes she said: “This meant I was going to have to get much more serious about looking at our taxes and RIGHT now because this meant we were going to have to come up with a payment by today.”
    Mrs. Accountability – honestly, 3.5 months after year end can be plenty of time for you to take your time making sure you have your taxes right and filing on time, if you like to do that. Really, extensions are for companies that don’t have finalized audited/reviewed financial statements done for a few months after year end, and because that way tax accountants have work 9 months out of the year, instead of just 3 :).

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    Mrs. Accountability Reply:

    Kellen, yes I would love to have been done with my taxes already. I hate dragging it out. But that’s the way it goes sometimes. I’m just glad I have the option to take an extension because it reduced my stress levels. Why have a nervous breakdown when you can file an extension?

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  • I actually just mailed in an extension. In our state you have to apply for certain energy credits and receive a certificate to claim it on your taxes instead of just claiming the amount on your taxes. For us, it’s the difference between owing $2 and a $300 refund, so we decided to file the extension and wait on our credit certificates.

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  • Mrs. A it makes you think about how important tax planning is doesn’t it. As for me, I’m done. I owed some money, but if you think about it basically it’s an interest free loan for me to use the money all last year and not have to pay up until April 17. I’m new to the blogging scene, and I’m building my blog on Personal Finance I think I’ll check back in here again.

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  • Filing taxes can be so complicated! I usually used HR Block but the online one, because right now I have a very basic return.

    [Reply]

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