file for an extension or amend?

[Xian2]

I have a small share in a partnership, that sends me each year a K1 Schedule for my taxes. They are always late and I have to wait for them until I can finally do my taxes.  This year they are telling me that they are still waiting for some tax credit from the IRS and they themselves will file for an extension and do complete their taxes later. That means I won't get my K1 until after April . So what is my best approach?

do I file for an extension myself and wait to do my tax return later this summer?

or should I do taxes now, get my refund (likely) and then file an amendment with the K1 later this summer, (and probably have to pay some taxes then) ?

what are the pros and cons or do I even have a choic

[MarilynG1 · Accepted solution]

You do have a choice.  Whether you request  an Extension of Time to File or File/ Amend, any Tax Due Amount is owed as of April 15, 2021.

Click this link for more info on Filing for an Extension. 

This link has instructions on Tax tips for Amending. 

[monsterofthemidway]

I'm in the same situation.  I invested $25K into a real estate project and was told I won't have my K-1 until after the deadline.  From everything I'm reading, and from what you said, I have to pay any taxes owed.  How do I know if I'm supposed to owe taxes if I don't have the K-1.  I've never done this before, and I'm uncertain what my liabilities will be with that change.  Is the amount owed only based on the information I have in front of me or do I have to factor in the investment?

[monsterofthemidway]

To add onto this, could you assist in telling me where in Turbotax I input this information when the K-1 does come in?

[DoninGA]

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@monsterofthemidway wrote:

To add onto this, could you assist in telling me where in Turbotax I input this information when the K-1 does come in?

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For the online editions -

To enter a Schedule K-1

Click on Federal
Click on Wages & Income (Income & Expenses using Self-Employed)
Scroll down to S-corps, Partnerships, and Trusts
On Schedule K-1, click on the start or update button

Or enter k-1 in the Search box located in the upper right of the program screen. Click on Jump to k-1

[fanfare]

you are expected to pay the shortfall of tax with Form 4868.

Otherwise you may be penalized by paying after April 18th,

you can estimate by entering a K-1 with the amount you expect to get.

If you have no information you have to guess.

If you guess low, you may owe when you finally file.

to avoid that guess high.

the other option (take refund now)  is no help if you still owe an amount after April 18th due to your amendment.

@monsterofthemidway 

[Xian2]

I ended up just filing for extension and waiting for the K1 to come n and then do the tax return  - TT will guide you through the process with the K1

cheers,

[TeresaM]

You can make an estimate for your tax liability and pay that with an extension, so you can still efile the return when the Schedule K-1 arrives. If you file now without it and then amend, it will take much longer to process, but you can certainly do so. It might make a difference how much you think it will make on your return. You may need to file an extension on your state return, as well, and there is a link to click at the bottom.

You can log in and click here to file a TurboTax extension now and there will not be an late filing fees until after October 18, 2023.  You will still owe any tax liability late fees after April 18th, so it is well to pay an estimate of your liability. You may need to file an extension on your state return, as well, and there is a link to click at the bottom of the extension page.   

When you are ready to enter Schedule K-1 into your personal return in TurboTax Online, that will go in the Wages and Income section on the left menu.

1. Scroll down to S-corps, Partnerships, and Trusts and click on Show More
2. Click on Start or Revisit for Schedule K-1 
3. Select Start for the type of Schedule K-1  

 

@monsterofthemidway