Sunday, April 13, 2008

Need More Time to Do Your Taxes?

If you keep delaying the inevitable and haven't done your taxes yet, there is a backup option. For no penalty, you can file for an automatic extension using Form 4868 to get six extra months. A few caveats:

1) If you think you might owe money, pay it when you file this form. You are not getting an extension to pay, just to file. If you don't pay what you owe, you'll pay a penalty. You are better off paying a little bit in case you owe money and getting it refunded when you file.

2) You do not get an extension to contribute to your Roth IRA, so don't forget that before the 15th.

3) You won't get your stimulus package check from the government until you file this year. Most taxpayers will be getting $300, but you need to file a return to get your check.

See more information on filing extensions on the IRS website.

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