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Guidance on how much to pay when filing an extension

When filing an extension, what is the proper amount to estimate? We owe taxes that TurboTax has calculated. One of our investments has filed for an extension and so we do not have that information. We suspect that it will be a loss and therefore decrease the amount of tax owed overall.

 

Example:

We have paid $500 in taxes already

TurboTax calculates our total tax bill is $1000 so we owe an additional $500

We estimate the loss could reduce the total taxes to $900

In this example would the amount to pay when filing the extension be $500 with the knowledge some of that would be coming back or perhaps $400 with the knowledge it might be more?

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1 Reply
ee-ea
Level 15

Guidance on how much to pay when filing an extension

Pay 500, be safe.

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