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Im a bit confused. I started filing my taxes with turbo tax and even though i have not completly filed and reported, its seems i will have to pay (thanks to crypto currency lol). I just filed an extention with turbotax and almost immediatly got accepted. So my confusion is with hearing that i still have to pay if i owe (by April). Do i have to pay by April or pay by whatever deadline im given?
If you are estimated to owe, you are still supposed to PAY by April 18th this year. Otherwise, you could face some penalties/interest. If I were you, I would make an estimated payment on the IRS website before April 18th. Even if you overpay, you can get it back when you complete your tax return. From the IRS: www.irs.gov/newsroom/irs-reminds-taxpayers-an-extension-to-file-is-not-an-extension-to-pay-taxes
Hey the length of this is fine. You don't need to shorten it. When it comes to taxes people need as much info and context as possible. People demanding a shorter video have problems.
Also...I saw on UA-cam that with taxes...it is better for you to owe the government than for them to owe you. What is the best way to fill out your W4 so you break kinda even...where you don't owe them and they don't owe you?
The reason why they say that (and I generally agree) is because in many circumstances (but not always) if you get a large tax refund then that means that you gave the government an interest-free loan (you withheld more taxes than you actually owed) all year long. That money would have been better used by being in your own pocket. Honestly, the best way to fill out the W-4 is to first and foremost be honest so that you don't face any penalties for withholding significantly less than what you should owe. Secondly, don't put anything on line number 6 "Additional amount, if any, you want withheld from each paycheck". Thirdly, as a minimum, I would say to make sure that you put at least "1" on your allowances rather than "0" (you can claim anywhere from 0-3 allowances) If you claim more allowances then less income tax will be withheld. Finally, if your federal income tax bill ended up being $0 or less last tax year and you expect the same thing to occur this year then you can claim "Exempt" on line 7, which means no Federal income tax will be withheld from your paycheck. I hope this helps answer your question!
The rules can be completely different when it comes to each state and municipality. For example, some states do not tax income at all such as Nevada, Texas, Washington, etc. Other states can tax as much as 13% (Like California on really high incomes). That's why it's important to get state tax advice from someone familiar with your area because it differs so much, whereas federal taxes are the same for all.
If you file for an extension to October 15th 2020...what happens if you would have owed taxes if you filed by July 15th. Do they charge you interest from July 15th through October 15th? Do they want that interest paid ON October 15th?
You won't get charged interest and penalties if you filed for an extension and got approved between July and October. The tax bill is going to be due on the day you file or October 15th (whichever comes sooner). After that date you might be charged fees, although I bet they will be a lot more lenient this year (hopefully).
@@OnCashFlow Yes..."hopefully"...lol. Been rough! But it has made me strive to become more informed on my finances and making sure I am financially secure incase something unexpected pops up like...ummmmm...a PANDEMIC! (Who would have "thunk"...lol.)
@@neosoul2010 I'm glad that you are seeing these times as an opportunity to learn and better yourself, more people need to develop a similar mindset like you! :)
Whoops. Try playing it on 2x speed lol. I try to explain as much as necessary, but sometimes It turns into repeating myself. Glad it was still helpful!
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Im a bit confused. I started filing my taxes with turbo tax and even though i have not completly filed and reported, its seems i will have to pay (thanks to crypto currency lol). I just filed an extention with turbotax and almost immediatly got accepted. So my confusion is with hearing that i still have to pay if i owe (by April). Do i have to pay by April or pay by whatever deadline im given?
If you are estimated to owe, you are still supposed to PAY by April 18th this year. Otherwise, you could face some penalties/interest. If I were you, I would make an estimated payment on the IRS website before April 18th. Even if you overpay, you can get it back when you complete your tax return.
From the IRS:
www.irs.gov/newsroom/irs-reminds-taxpayers-an-extension-to-file-is-not-an-extension-to-pay-taxes
Hey the length of this is fine. You don't need to shorten it. When it comes to taxes people need as much info and context as possible. People demanding a shorter video have problems.
Thanks I really appreciate that. I have tried really hard to not have fluff in my newer videos (I like to think that I have gotten a lot better!) :)
What the hell is the point of filing an extension if I have to pay the taxes up front. It's absurd.
More time to prepare your tax return and take care of your accounting is a good reason.
Also...I saw on UA-cam that with taxes...it is better for you to owe the government than for them to owe you. What is the best way to fill out your W4 so you break kinda even...where you don't owe them and they don't owe you?
The reason why they say that (and I generally agree) is because in many circumstances (but not always) if you get a large tax refund then that means that you gave the government an interest-free loan (you withheld more taxes than you actually owed) all year long. That money would have been better used by being in your own pocket.
Honestly, the best way to fill out the W-4 is to first and foremost be honest so that you don't face any penalties for withholding significantly less than what you should owe.
Secondly, don't put anything on line number 6 "Additional amount, if any, you want withheld from each paycheck".
Thirdly, as a minimum, I would say to make sure that you put at least "1" on your allowances rather than "0" (you can claim anywhere from 0-3 allowances) If you claim more allowances then less income tax will be withheld.
Finally, if your federal income tax bill ended up being $0 or less last tax year and you expect the same thing to occur this year then you can claim "Exempt" on line 7, which means no Federal income tax will be withheld from your paycheck.
I hope this helps answer your question!
@@OnCashFlow Yes...this was helpful! Thank you again.
Also...how are state and city taxes different from federal taxes? Or are the rules the same?
The rules can be completely different when it comes to each state and municipality. For example, some states do not tax income at all such as Nevada, Texas, Washington, etc. Other states can tax as much as 13% (Like California on really high incomes).
That's why it's important to get state tax advice from someone familiar with your area because it differs so much, whereas federal taxes are the same for all.
@@OnCashFlow Will do. Thank you!
If you file for an extension to October 15th 2020...what happens if you would have owed taxes if you filed by July 15th. Do they charge you interest from July 15th through October 15th? Do they want that interest paid ON October 15th?
You won't get charged interest and penalties if you filed for an extension and got approved between July and October. The tax bill is going to be due on the day you file or October 15th (whichever comes sooner). After that date you might be charged fees, although I bet they will be a lot more lenient this year (hopefully).
@@OnCashFlow Yes..."hopefully"...lol. Been rough! But it has made me strive to become more informed on my finances and making sure I am financially secure incase something unexpected pops up like...ummmmm...a PANDEMIC! (Who would have "thunk"...lol.)
@@neosoul2010 I'm glad that you are seeing these times as an opportunity to learn and better yourself, more people need to develop a similar mindset like you! :)
Thank you for the information, but you talked too much. Same I formation else where under five minutes. Yw
Whoops. Try playing it on 2x speed lol. I try to explain as much as necessary, but sometimes It turns into repeating myself. Glad it was still helpful!
I like the explanation more. Helps to understand.