Guide to Managing Your Tax Extensions This Year
Tax extension is a way for taxpayers to get extra time to file their returns. Usually, they can request an additional 6 months to file their tax return. With such an option available, you can avoid late penalties or interest charges issued by the IRS.
However, since the tax season is here and the need to file extensions on your income tax returns might feel urgent and tedious - with proper planning and organization, managing your tax extensions can be a relatively stress-free process.
In this guide, we will provide tips on how to effectively manage your tax extensions this year, including information on the deadline for filing income tax returns that have received extensions, and how to find a financial advisor to help with tax planning.
Understanding the Deadline for Filing Income Tax Returns That Have Received Extensions
When you file for a tax extension, the deadline for submitting your tax return is typically extended by six months. For example, if the original deadline to file your tax return was April 15th, 2023, and you filed for an extension, the new deadline to file your tax return would be October 15th, 2023.
It is important to note that filing for an extension does not extend the deadline for paying any taxes owed. If you owe taxes, you must pay them by the original filing deadline (April 15th, 2023) to avoid penalties and interest. However, if you estimate that you will owe taxes but cannot pay the full amount by the original deadline, you can still file for an extension to avoid the late filing penalty.
Tax Extension Deadline 2023
The last date for filing income tax returns that have received extensions is October 15th, 2023, for the tax year 2022. This means that if you file for an extension, you will have until October 15th, 2023, to submit your tax return to the IRS.
It is important to note that this deadline is firm and cannot be extended further. If you do not file your tax return by the deadline, you will be subject to late filing penalties and interest charges on any taxes owed.
Tips for Managing Your Tax Extensions
When it comes to managing your tax extensions, several methods can be used to get it done easily. However, the following methods have been found to make the process seamless and uncomplicated :
Stay organized: Keep all your tax documents and information in one place. Create a folder on your computer or a physical folder where you can store all relevant documents, such as W-2s, 1099s, and receipts.
Use tax software: Tax software can help simplify the process of preparing and filing your tax return. Most tax software programs offer an option to file for an extension, making it easy to manage your tax extensions.
Make estimated tax payments: If you estimate that you will owe taxes but cannot pay the full amount by the original filing deadline, make estimated tax payments to avoid late payment penalties and interest charges.
Work with a certified tax strategist: They can help you navigate the intricacies of taxes and ensure that you are benefiting from all the deductions and credits. To worth with our tax strategist at PRIME Financial Services, get in touch with us here.
As an individual, you can submit Form 4868 to file your tax extensions. This is a form that any U.S. citizen can use to automatically extend the deadline on their income tax return.
Finding a Financial Advisor for Doctors
If you are a doctor or medical professional, finding a financial advisor who understands your unique financial situation can be challenging. However, with the right guidance, you can find a financial advisor who can help you navigate the complexities of the tax code, plan for the future, and maximize your financial potential.
Here are some tips for finding a financial advisor :
Look for a specialist: Find a financial advisor who specializes in working with medical professionals. At PRIME Financial Services, our team of financial professionals understands the unique financial challenges that doctors face, such as managing student loans, dealing with malpractice insurance, and planning for retirement.
Ask for referrals: Talk to other doctors and medical professionals and ask them for recommendations for financial advisors. They may be able to provide valuable insight into their experiences and help you find a reputable advisor.
Check credentials: Look for financial advisors who hold credentials such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA). These certifications indicate that the advisor has undergone rigorous training and has demonstrated a high level of proficiency in financial planning and investment management.
Consider fees: Financial advisors may charge different types of fees, such as hourly fees, flat fees, or a percentage of assets under management. Consider which fee structure works best for your financial situation and goals.
Managing your tax extensions with a proactive approach can be a straightforward process. By staying organized, using tax software, making estimated tax payments, and working with a certified tax strategist, you can minimize the stress and ensure that you meet the tax extension deadline well ahead of time.
At PRIME Financial Services, our team of tax professionals specializes in working with doctors and helping them manage their taxes efficiently, enabling them to have a financially secure future. Contact us today at https://www.pfinancialservices.com/contact