Did your Orlando accountant help you get done with your tax preparation or are you still sorting stuff out? Will you be able complete your return before the 15th of April, 2014? No? This is not exactly any issue, if you take proper steps. Submit an application to the IRS that states that you want to delay your tax deadline. Your accountant Orlando can guide you more about the exact details of this. Should you do everything properly and succeed, your tax deadline will be delayed by six months until the 15th of October, 2014. You will also not have to pay any penalties associated with filing late tax returns.
Sounds good enough? It is, but there is a major loop. IRS is clever, and though they have this extension clause, they also require you to pay the amount of taxes by the 15th of April, 2014. This is only so if you owe money to the government. It is only the paperwork that is delayed and taxes still have to be paid earlier. Ask your accountant Orlando to estimate an amount for you, and pay this money to the IRS.
The best way to file an extension is to do it with an online tax service. Web based tax programs are aplenty in number, and filing your extension through these is a quick and simple option. Every software has a number of varying features, but the essentialities are the same. You will be able to file an extension and pay the amount of tax due through the software itself. Obviously you will have to provide information about your account details so make sure you are using a trusted tax services with a very secure network. Generally, the software will allow you to save a PDF coy of the e-filed extension and will notify you when the IRS accepts it.
The next step of the filing an extension involves sending the IRS a hard copy. Most tax applications feature the required forms and allow you to print copies of them. The form you will require is the IRS Form 4868. When you print this out, print out the set of instructions as well. Complete the form and then mail it to the IRS; you can obtain the address from their website.
If you owe any taxes to the government, include the payment when you mail the form. As already mentioned, the form must reach IRS by the 15th of April. If this is not so, you will have to pay penalties along with an interest amount, even if you got an extension.
Once this is done, you can relax and carefully fill out the return form. Complete it and send it to the IRS by 15 October, 2014.
Points to Note
- Your extension will not be approved if the estimated amount of taxes is unreasonable. As such, hire a skilled accountant Orlando for this.
- In case you pay less taxes than you owe, you have to pay an interest on the remaining amount.
Orlando Accountant Tax Tips
As every year nears it ends, all individuals and business owners start taking steps that will allow them to pay the lowest possible amounts in taxes. Do it wrong, and the effects will not be seen. Do it right, and you will be surprised by the huge amount that you can save. So how do you get this done? Follow the tax strategies that we have and ask your accountant Orlando to guide you more about them.
So come December, and here is what you have to do,
Get your income deferred
Income is applicable to taxes in the year in which you receive it. But you want to decrease your taxes, right? So why not pay it later instead of this year? True, if you ask your employer to delay your December salary or wages, it will not be easy for them, but they might just delay your bonus until the next year if their policies allow them to.
For self-employed people and the freelancers, this is easier to do because they have more control and can flex the situation to favor them if the need arises.
Another way to delay income that will work for both employed and self-employed people, is to take capital gains in the next year rather than the current one.
Take tax deductions
Even there are just a few days left on the calendar, you should still take a deduction. True you cannot think about moving out or get a mortgage, but there are still other things that you can do. Contribute to charity, buy some educational materials if you are a teacher, or hire tax preparation services.
You will have to itemize your deductions and if you use these, you cannot claim any of your standard deductions. As a rule of the thumb, itemizing deductions is not a great option if qualifying expenses are more than $6,100 for the single filing status or more than $12,200 for couples filing jointly.
Take note of the Alternative Minimum Tax
Deductions are a great option, but there are some instances where they can make the circumstances unfavorable. This is so if you are subjected to the Alternative Minimum Tax or AMT. Previously this feature was launched so that the higher class could not utilize deductions to the fullest to lower their taxes. Unfortunately, the effects are now prevalent on the middle class as well.
The AMT amount is estimated in a different manner than your taxes, and the applied techniques are also varying. You will have to pay the bigger tax bill of the two.
Ask your accountant Orlando if you will have to pay this tax, and only then make use of deductions. This is because an expense that can be regarded as a deduction according to the general tax rules may not be considered as one as per the ATM policies. Examples of these are property taxes and local/state income taxes.
Contribute to a retirement account
Contributions to a tax-deferred retirement account such as 401(k) can bring down your tax bill. Towards the end of the year, try to contribute a larger amount.
If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, and Celebration, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.