Tax Extension? No Worries!
Photo by Supannee U-prapruit on Unsplash
We’ve all been there. Getting your taxes done on time can be extremely stressful, and filing for an extension shouldn’t feel like a crime. Rushing to meet the April 15th deadline can lead to expensive errors, and the headache and hassle of filing for an amendment down the road. And let’s be honest, nobody likes filing for taxes in the first place – let alone twice.
In many circumstances, filing for an extension is the smartest move you can make for your financial situation. Not to mention many tax professionals face significant workload strain during this time of year, so filing for extension can be beneficial for all parties. We work closely with our clients to assemble their tax material so that when the time comes to file, they can do so confidently with their tax preparer.
Proactive Planning
As holistic financial planners, we don’t view taxes as a seasonal chore or a once-in-a-year event, but rather as a core piece of your broader financial picture. With a comprehensive understanding of our client’s tax situation, we can help create short term outlooks and/or develop long term horizons so that you can plan your future accordingly. Frequent policy pivots affecting our federal tax structure, like recent legislation such as the OBBBA, can also create new pitfalls to look out for, and opportunities to capitalize on.
We work with clients and their CPAs to understand their total income for the year, set accurate W4 withholdings, and coordinate estimated payments.
Form 4868
During this hectic time of year, the April 15th deadline can loom large, but rest assured you won’t get arrested for extending your tax filing date. Filing Form 4868 (Application for Automatic Extension) provides a deferral period until October 15th to get everything right.
It’s important to note that an extension to file is not an extension to pay, but it can provide you and your tax professional the breathing room necessary to plan for your tax exposure and optimize your returns in the meantime. Plus, there’s no penalty for not filing by April 15th with an extension. Any potential penalties or interest you may owe would be a result of underpayment or missing the deadline without an extension.
Holistic Tax Strategy
We specialize in helping our ongoing clients—especially business owners, independent contractors, or those with unique income sources—bring calm to the chaos and complexity of tax season. Whether you’re dealing with equity compensation, RMDs, payroll or pass-through taxation, a complex inheritance, or anything in between, we’ll collaborate with your tax professional to better plan for and minimize your tax burden. We can also proactively help you make estimated quarterly tax payments.
Let’s Get Organized
If you’re looking for a holistic financial planning partner to help optimize your tax situation, or have concerns about meeting tax deadlines, we’re here to help.
