This is my first time asking for extension and it’s asking me to estimate my tax liability and I don’t know what to put

Forum|Forum|3 years ago
April 11, 2023
5 replies
15 views

I filed MFJ and have 2 dependents and we have never owe taxes before. My husband is self employed

TurboTax Online

Best answer by vlfrancisco

If you have never owed taxes when you filed in the past and you believe that you will not owe any unpaid balance when you file your extension, then you will answer that question with a zero. If it turns out that you do owe a balance, then there may be a late payment penalty.

xmasbaby0

Level 15

When you ask for an extension, the extension does not give you extra time to pay the tax you owe. It only gives you extra time to prepare your Form 1040 and file it. By April 18, you are supposed to pay your estimated 2022 tax due. When you file the return---by mid-October or sooner----you get credit for the estimated payment you made. Have you entered enough information at this point to see an amount that you will owe? It will be on line 37 of your Form 1040.

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

vlfranciscoAnswer

Level 2

DaveF1006

Level 15

This is why it is recommended to send in the tax due amount with the extension to avoid these penalties.

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Vanessa A

Level 15

If you have never owed taxes before, and there was not a major change in your income, then you would just use the numbers off of your 2021 return as long as you already either made estimated payments or had tax withholdings to cover your taxes that you would have.

If there are major changes, then you would need to partially complete your 2022 tax return to determine your tax liability for 2022.

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higgin243

Level 2

Filing an extension does not give you extra time to pay your taxes. Your taxes are still due on April 18. You give it your best estimate (based on last year's return adjusted for changes in income, etc), minus any taxes already paid via withholdings or estimated payments made. If you over-estimate, you'll get a refund when you file. If you grossly under estimate, you'll get hit with a relatively minor interest charge.

Mike9241

Level 15

what are you missing? Turbotax allows entering estimates for missing info which could give you a better idea of whether you owe or not. this in part depends on the accuracy of those estimates. if you owe zero use that. if you owe enter and pay that by 4/18. if you overpay you can either request a refund or apply part or all to 2023. if you underpay expect a bill maybe including penalties and interest if significantly underestimated or only interest.

Mike9241

rbmagee

Level 2

You must pay the total tax due when you file the extension. BUT you haven't prepared the return, so what the heck?... Here's a tool that I've used to success in preparing estimated taxes all year long. It's made available for free from Atlantic Union Bank. Visit the site at [website removed] and look for its Federal Income Tax Calculator. I used it recently in January 2023 and wound up getting an $884 refund, which is exactly the way I like it: Tiny refund, no tax owed since it was already paid in, no penalty.