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

[karla_galvan07]

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

[xmasbaby0]

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.

[Vanessa A]

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.  

[vlfrancisco · Accepted solution]

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.

[DaveF1006]

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

[karla_galvan07]

That’s the thing I’ve never owe taxes before nor I thing I’m going to owe taxes this year. I file MFJ with 2 dependents

[karla_galvan07]

Thank you for responding 

[KrisD15]

IS THIS THE FIRST YEAR YOUR HUSBAND WILL REPORT SELF-EMPLYMENT INCOME?

If you are sure you will not owe, enter 0 if the program allows that. If not, you might need to enter at least a dollar to get the program to file the extension. 

If you file late, but owe no tax, you will not be charged interest or a late filing penalty. 

You have up to three years to file for a refund. 

If you are at all unsure if tax will be due, file an extension. If possible, start a joint return with the tax forms you have and make estimates for whatever you don't know, such as  the Self-Employment income. 

SINCE YOUR HUSBAND IS SELF-EMPLOYED, IT IS VERY PROBABLE THAT YOU WILL OWE SELF-EMPLYMENT TAX. Please factor that in when making the decision to file for an extension and estimating tax due. 

[karla_galvan07]

This is his second year, we file MFJ and have 2 dependents the only reason we need an extension it’s because he is still missing some forms.

[higgin243]

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.

[TeresaM]

If you file the extension it will waive failure-to-file penalties until October 18th. However, if you would have owed tax on April the 18th, the IRS will assess monthly late payment penalties and interest until you pay. 

I recommend to extend your return and also pay your best guess of anything you may owe. If you overpay, it will be refunded. If you underpay, it will only calculate penalties on the party that was not paid. 
 

TurboTax has a tool called TaxCaster to give you an idea of your tax liability and/or refund. You can vary different items and see how that could impact your return.  Click for TaxCaster.

[Mike9241]

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. 

[rbmagee]

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.