Extension Filing

Forum|Forum|2 years ago
April 11, 2024
1 reply
2 views

Can I file an extension if I might owe money? I’m still entering in income so at the moment I’ll be getting a return back but I have a 1099-NEC to enter that might cause me to own money.

VolvoGirl

Level 15

Yes. And you should especially send in an extension if you owe. But it is just an extension to file. Any tax due you owe is still due April 15.

mckinly16Author

Level 3

What constitutes taxes that I owe? I’m just starting taxes so won’t I only know how much I have to pay once I’m ready to file?

TomK2023

Level 15

Do you have similar income from W2s, 1099-Rs, self-employment, etc., this year (2023) as the year before? What was your total tax paid last year?

The safest option to avoid an underpayment penalty is to aim for "100 percent of your previous year's taxes." If your previous year's adjusted gross income was more than $150,000 (or $75,000 for those who are married and filing separate returns last year), you will have to pay in 110 percent of your previous year's taxes to satisfy the "safe-harbor" requirement. If you satisfy this test, you won't have to pay an estimated tax penalty, no matter how much tax you owe with your tax return.

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