April 15, It's Tax Day!

[MRT144]

WTF. i wont make 150k in the next 10 years.

[Japher]

I didn't bother to look, I don't want to know.

I am getting some back though!@

Yaay!!

[Kuciwalker]

Originally posted by MRT144
WTF. i wont make 150k in the next 10 years.

The 5 was a typo.

[JohnT]

Originally posted by pchang
In the US, you cannot rely upon the withholding rules to accurately withhold the proper amount of taxes. In the vast majority of cases, the default rules would withhold too much. The government does this on purpose (in effect a 0% interest loan). So, most people file to get a refund. If they did not file, the government would just keep the refund (dirty bastards).

And fine them for not filing.

[JohnT]

Originally posted by Kuciwalker
Our federal tax bill was about 130k, give or take 10k.

Your parents tax bill was 130k. Your tax bill was probably nil.

Don't confuse the two, or we'll just have to call you Glonk.

[Shogun Gunner]

And tonight, we all will be treated to great local news coverge at the post offices at around 11 PM where people are driving the post office and mailing their tax returns in before the MIDNIGHT deadline.

Every damn year.... what an interesting news peace

[chequita guevara]

Originally posted by JohnT


And fine them for not filing.

IIRC, you only get fined if you owe, not if you don't.

[Odin]

What the hell do your parents do for a living, Kuci? If they pay that much in taxes I am betting thier income is around $400,000. lets start calling Kuci a rich brat.

[JohnT]

No, you get fined for not filing. Else how would they know whether or not you owe? The IRS doesn't do your taxes and then see if your form matches theirs, Che.

Checks...

Ah, I'm wrong.

Let's say you are certain there are no additional federal income taxes due for last year. Maybe you had negative taxable income or coughed up your share via withholding or estimated payments. Now you are missing some records; are too darned busy at work; or have some other convincing reason for putting off filing. And you don't want to bother with getting an extension either. No problem, since you don't owe — right? Wrong.

While it's true there will be no IRS interest or penalties (these are based on your unpaid liability, which you say is zero), blowing off filing or extending is still a bad idea. Here's why.


You may be due a refund. Filing a return gets your money back. No return, no refund.

Until a return is filed, the three-year statute-of-limitations period for the commencement of an IRS audit never gets started. The IRS can then audit your 2004 situation five years (or more) from now, and hit you with a tax bill, plus interest and penalties. By then, you may not be able to prove you actually owed nothing. In contrast, when you do the smart thing and file a 2004 return showing zero taxes due, the government must generally begin any audit within three years. Once the deadline passes, your 2004 tax year is generally water under the bridge, even if the return had some warts.

If you had a tax loss in 2004, you may be able to carry it back as far as your 2002 tax year and claim refunds. However, until you file a 2004 return, your loss doesn't officially exist, and no refund claims are possible.

There are other more esoteric reasons that apply to taxpayers in specific situations.
The bottom line is, you need to either file by April 15 or, perhaps more realistically, get an extension and file later when you have more time.

The IRS will automatically approve any request for a four-month filing extension to August 15. Simply file Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) by April 15. Completing it takes about two minutes. (Honestly.)

You don't need to have a reason for asking for the extension, and signatures are no longer required. For example, if your spouse is vacationing in Greece or unavailable to sign for any reason, that's no problem. The only requirement is the total 2004 income tax liability and any amount still owing (which could be zero) must be estimated with reasonable accuracy (and paid) with Form 4868.

This must be part of the pro-taxpayer IRS reforms passed by the Republicans back in the 1990's, 'cause I know personally that there was a time where if you didn't file, you still got fined.

[pchang]

Originally posted by Odin
What the hell do your parents do for a living, Kuci? If they pay that much in taxes I am betting thier income is around $400,000. lets start calling Kuci a rich brat.

Heck, I know plenty of people that would call Rah's kids spoiled brats based on his income.

[Kuciwalker]

Originally posted by JohnT
Your parents tax bill was 130k. Your tax bill was probably nil.

Don't confuse the two, or we'll just have to call you Glonk.

Our as in a family.

My rebate was $100

[rah]

It's not just my income, it includes my wife's since we file jointly. And I'm sure once most of you reach the age we're at, you too will also have an equally sizeable tax liability. Of course by then inflation will mean your's will be twice that then.

[Kuciwalker]

Originally posted by Odin
What the hell do your parents do for a living, Kuci? If they pay that much in taxes I am betting thier income is around $400,000. lets start calling Kuci a rich brat.

My dad has a law degree and is a professional actuary, which is a very lucrative combination.

[chequita guevara]

Originally posted by JohnT
This must be part of the pro-taxpayer IRS reforms passed by the Republicans back in the 1990's, 'cause I know personally that there was a time where if you didn't file, you still got fined.

You know personally? There were a couple of years in the 80s when I didn't file because the amount I would have gotten back was less than $50. I remember asking about it then and being told that as long as I didn't owe money, the IRS would be happy to keep my refund.

[JohnT]

Yeah. Didn't file once in college a year after earning $25,000. Got a letter from the IRS in November telling me that I didn't file and that my estimated penalty was $78 (I remember because the amount was so weird). I filed, wrote a check for $78, and that was that.

At least, until the check bounced. That was another $100+ dollars, to sort that mess out!