*IMPORTANT NOTE REGARDING YOUR INCOME TAX EXTENSION
Please know that while filing an extension removes late filing penalty assessments when you file by the extension deadline of October 15th, 2024, any tax liabilities (amounts you owe the IRS or State) are STILL DUE BY April 15th, 2024.

 

If you file an extension without making any payments and subsequently file with any amounts owed, interest will be charged on any amounts owed and will accrue beginning on April 15th, 2024, until your full balance(s) owed is paid.

 

There is no perfect method to “quickly” estimate your tax liability for any given year. But, short of having your returns fully prepared, you may choose to use your prior year's tax returns as a gauge. If your income for 2023 was similar to 2022, and you did not have any other significant taxable events during 2023 (withdrawals from retirement accounts, large capital gains, received an inheritance, etc.) Then, you may choose to base your estimated tax liability on your prior year results (pay the same amounts at the time of the extension that you owed last year, or if you had refunds, then choose to make a zero payment).

 

Keep in mind that if you underpay, at least you will have reduced the amount of interest you will be charged, and if you overpay, you will receive the overage back as a refund when you file! Please note that since we have not yet received your tax documents and/or did not receive them far enough in advance of the filing deadline to prepare your return,

we will not be able to determine what amount, if any, you should pay at the time of extension.

 

However, if you are a returning client and would like us to send you your tax liability information from your 2022 return to assist you in determining if you would like to make a payment with your extension, please email us at info@rac-co.com or call/text our office at (585) 454-8780.

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