If you extended your tax return in April, it's due in October, and it’s time to deal with it. Here’s a few things to know as you gather your documents.
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00:03 - So maybe the middle of the summer
00:04 and you're probably sitting on the beach,
00:05 you don't wanna hear this,
00:06 but if you extended your tax return back in April,
00:09 it is due in October.
00:11 You're gonna have to go get your stuff together
00:13 and figure this out.
00:14 Lisa Greenlew is TurboTax expert and CPA is with us right now.
00:17 Okay, Lisa, so first of all,
00:18 when is your extended tax return due?
00:21 - Your extended tax return is due October 16th.
00:27 One thing to keep in mind,
00:29 there were some states that were impacted
00:31 or some areas impacted by federal disasters
00:35 and you may have a different date.
00:37 So check out what yours is if you were impacted.
00:41 - So what are some of the things
00:42 that we should be thinking about now?
00:44 - Well, some of the things you should be thinking about,
00:47 just like the normal time that you file in April,
00:51 you wanna gather all your documents in one place
00:54 and start getting organized.
00:56 You wanna definitely gather your documents
00:58 that include your income like W-2s, 1099s,
01:03 but also don't forget your receipts and forms
01:06 that show those expenses that you paid
01:08 because those can be worth valuable deductions.
01:11 - You'd also mentioned
01:13 that there was some leftover COVID stuff
01:15 that people need to be aware of.
01:16 Is there anything still lingering?
01:19 - Some of the big things that people need to think about,
01:22 a lot of people saw lower refunds in tax year 2022
01:27 and that was because of a lot of the COVID relief
01:30 that went away, especially that relief related to kids.
01:34 So, well, it didn't necessarily go away,
01:38 but some of the relief for kids,
01:41 it reverted to the old credits.
01:44 So the child tax credit, with COVID relief,
01:47 it was up to $3,600.
01:50 Now it's reverted to $2,000.
01:54 And then a big one, the child and dependent care credit,
01:57 that was up to $8,000 for two kids.
02:01 That's reverting to up to $2,100 for two kids
02:05 and 1,050 for one child.
02:08 And then the recovery rebate credit, that went away.
02:12 So the last recovery rebate credit was $1,400,
02:16 but that did go away.
02:17 - Yeah, so people can see some big changes
02:20 on their tax returns this year,
02:21 which is gonna be a little bit of a bummer,
02:23 potentially owing more money.
02:24 As a reminder though, right,
02:26 your tax bill was due in theory back in April
02:29 when you filed your original extension.
02:32 So people might be calculating interest
02:34 and penalties at this point as well.
02:36 One of the other things you noted too though
02:38 was about stock transactions.
02:39 A lot of stock trading happened last year.
02:41 So whether it was stocks, cryptocurrencies, bonds,
02:44 you can upload that stuff into TurboTax, right?
02:46 And it can help you figure out your gain or loss.
02:49 - Right, yeah.
02:51 So you definitely, when you're getting everything together,
02:54 you wanna have the accurate cost basis
02:57 so that you can figure out your capital gains or losses.
03:00 But one thing TurboTax allows you to do
03:04 is you can automatically import
03:06 up to 10,000 stock transactions
03:09 and 20,000 crypto transactions at once.
03:13 And you don't have to run around looking for your cost basis
03:18 and manually inputting all those transactions.
03:21 It does it all for you directly
03:23 from your financial institution or crypto platform.
03:28 - If you were in a declared disaster zone, where are you?
03:31 Do you get more time or you still have to file by October?
03:35 - Yes, there were multiple dates and extensions
03:40 for people that lived
03:42 in those federally declared disaster zones.
03:45 So there were some coming up in July, some September,
03:50 the majority in October.
03:52 I know California, New York,
03:57 some of those areas were in October,
04:00 but you just do need to be aware of those dates.
04:03 You weren't required to file an extension.
04:06 It was automatic if you lived in those areas,
04:09 but just be aware, look up your state and your area
04:14 to see what dates you have coming up.
04:18 - And finally, as we mentioned the bill earlier,
04:21 if you can't pay it,
04:22 you can go on an installment payment plan
04:25 kind of sort of with the IRS, can't you?
04:27 - Yes, the IRS, they do allow you
04:30 to request an installment agreement
04:33 and that gives you up to six years to pay what you owe.
04:36 So keep that in mind.
04:37 Hopefully you don't owe
04:38 and you're able to take advantage
04:40 of all the deductions and credits,
04:42 which TurboTax also helps you find,
04:45 as well as you can have a TurboTax Live expert
04:50 do your taxes for you.
04:52 You could just hand over everything
04:55 and you don't have to worry about it.
04:57 - That's great stuff.
04:58 Lisa Green-Lewis, TurboTax expert.
04:59 Thank you so much for being with us.
05:02 - Thank you for having me.
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