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Taxes

  • 1.  Taxes

    Member
    Posted 03-29-2020 18:36
    I decided to start a new thread with a few posts that I recently made on my FB page:

    "Tax Relief: Presidentially Declared Disaster Areas-Extensions to File or Pay Taxes

    The IRS gives affected taxpayers until the last day of the Extension Period to file tax returns or make tax payments, including estimated tax payments, that have either an original or extended due date falling within this Period. The IRS will abate interest and any late filing or late payment penalties that would apply during these dates to returns or payments subject to these extensions."
    Source:https://www.irs.gov/newsroom/tax-relief-presidentially-declared-disaster-areas

    Translated: If you (or your tax preparer) live in a federally declared disaster area, you can extend your payment date to the end of the extension period, which is 10/15, 3 months beyond the current extended deadline of 7/15.


    Now that the stimulus package has become law, it may make sense to procrastinate in filing your return for 2019. It also may make sense to file your return ASAP. If you have NOT FILED a return for 2018 or 2019, it may take longer to receive a check if a check is due to you. In most cases, you do not have to do anything to receive payment. How much (or if) you receive is determined by factors such as: filing status, AGI, # of dependents under 17, & most recently filed return.
    Supporting article(with calculator):https://www.kiplinger.com/article/taxes/T056-C005-S001-bigger-stimulus-check-file-your-tax-return-now.html



    While based in CT(now a federal disaster area), I file(or have filed) returns for clients with personal and/or business returns in CT, TN, TX, FL, VA, MO, RI, SC, & Turkey with returns filed for CT, VA, MO, MD, CA, RI, PA, SC, VT, IN, & NY. I can probably file yours as well. If interested, please don't hesitate to call, text, email, or  PM me on FB for more information.



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    John Gallen
    OWNER
    1040 Pianos
    S Windham CT
    860-428-6045
    1040pianos@gmail.com
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  • 2.  RE: Taxes

    Registered Piano Technician
    Posted 03-29-2020 19:30
    ​Hi John,

    Thanks for your help with this!

    Something I thought of today as I was filling out my 1040;
    what about a sole proprietor whose estimated payments for last year are a little less than they should have been?
    Normally, this is due 4/15 whether you file the 1040 or an extension, could this be deferred also?
    (I didn't make that mistake!)

    Michael

    ------------------------------
    Michael Gutowski, RPT, TEC
    Central East RVP
    Chicago Chapter
    chicagotuner@aol.com
    847-759-0369
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  • 3.  RE: Taxes

    Member
    Posted 03-29-2020 19:59
    Michael,
    The Form 2210(or your software) is where the expected minimum amounts
    based on 2018 are compared with 2019 along with the dates that the estimated payments are actually paid.
    Any payment is applied to the earliest payment due date first,
    before applying any to the second payment date & so on.
    Penalties are based on how many days late those applied payments are made.

    The estimated filing date has been extended to July 15 as well:

    The June payment, however, has not been extended at this time.
    If your state or county is declared a federal disaster area,
    both the filing date & the payment date would be extended
    to the federal extension date, which is 10/15.

    We are in a volatile period now when it comes to tax due dates
    as the states try to coordinated with the feds regarding due dates.
    We may see these dates pushed out even further.

    --
    John Gallen,
    (860)428-6045 CELL
    Production Supervisor: Brooks, Ltd. Piano Parts, LLC
    Owner: 1040 Pianos(Tax Preparation)
    Owner:Vintage Piano Repair(Piano Moving)
    Treasurer: Master Piano Technicians
    Treasurer:Calvary Baptist Church of Preston, CT
    Treasurer:Guilford Smith Memorial Library, South Windham, CT
    Ambit Energy: Independent Consultant(www.gallonsofenergy.myambit.com)
    Institute Director, May 2019 Piano Technicians Guild's NEECSO Regional Seminar
    Convention Director, August 2019, Master Piano Technicians





  • 4.  RE: Taxes

    Member
    Posted 03-29-2020 22:27
    I posted my routine on another thread and my taxes are done (TurboTax) and the 1st Quarter is covered and part of the 2nd. If your income doesn't meet last year's and you want to send in less than the estimated quarterly, there is a form when you file at the end of the year to enter what your income was during each quarter to avoid a penalty.

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    Regards,

    Jon Page
    mailto:jonpage@pianocapecod.com
    http://www.pianocapecod.com
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  • 5.  RE: Taxes

    Member
    Posted 03-29-2020 23:12
    Good question, Jon.
    Per the instructions for Form 2210(Underpayment of Estimated Taxes),
    two things may apply that are helpful given our situation:
    1.)Federally declared disaster.
    Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. Don't file Form 2210 if your underpayment was due to a federally declared disaster. If you still owe a penalty after the automatic waiver is applied, the IRS will send you a bill.

    2.)This information is found in the instructions for Form 2210 & is entered on page 4:
    Schedule AI-Annualized Income Installment Method: If your income varied during the year because, for example, you operated your business on a seasonal basis or had a large capital gain late in the year, you may be able to lower or eliminate the amount of one or more required installments by using the annualized income installment method. Use Schedule AI to figure the required installments to enter on Form 2210, Part IV, line 18.

    Part II-Annualized Self-Employment Tax

    If you had net earnings from self-employment during any period, complete Part II for that period to figure your annualized self-employment tax.



    ------------------------------
    John Gallen
    OWNER
    1040 Pianos
    S Windham CT
    860-428-6045
    1040pianos@gmail.com
    ------------------------------