Late taxes, I Bonds and justifying procrastination

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Late taxes, I Bonds and justifying procrastination

Postby VictoriaF » Sun Mar 24, 2013 1:43 pm

For a variety of reasons, I may not be able to do my taxes by 15 April. If I just send $5,000 to the IRS as my estimated tax liability, can I assume that
(1) I will have until October to do my taxes, and
(2) Once I do the calculations, an over-payment up to $5k will come back to me in the form of paper I-Bonds?

I hope that the answers are "yes" and "yes," but I want to make sure that I am not missing anything important.

Thank you,

Victoria
Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
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Re: Late taxes, I Bonds and justifying procrastination

Postby dickenjb » Sun Mar 24, 2013 1:49 pm

You are correct only if the $5000 results in an overpayment of $5000 or more.

In other words, if you would have owed money with your 1040 you will need to send more than $5000.
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Re: Late taxes, I Bonds and justifying procrastination

Postby BL » Sun Mar 24, 2013 1:55 pm

I assume you will attach the Form 4868 application for automatic extension of time to file along with your money.
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Re: Late taxes, I Bonds and justifying procrastination

Postby livesoft » Sun Mar 24, 2013 1:57 pm

In recent years we have always filed an extension in April and a tax return in October. No problems with that. We have not requested I-bonds for the refund, so I am clueless about I-bonds for the refund in October.
Last edited by livesoft on Sun Mar 24, 2013 1:57 pm, edited 1 time in total.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Late taxes, I Bonds and justifying procrastination

Postby VictoriaF » Sun Mar 24, 2013 1:57 pm

BL wrote:I assume you will attach the Form 4868 application for automatic extension of time to file along with your money.


Excellent point, thank you. Dropping five $1,000 bills into a mailbox is not the best way to handle it, procrastination or not.

Victoria
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Re: Late taxes, I Bonds and justifying procrastination

Postby Investor2 » Sun Mar 24, 2013 2:38 pm

I had to file late last year, and did not get the I bonds I requested, despite including the appropriate form (Form 8888). I'm not sure whether the late filing was a factor, but plan to file on time this year and try again.

By the way, rather than sending in $5,000 with an extension request, you can also change your W-4 toward the end of the year to increase witholding enough to ensure you have a $5,000 refund coming. At my agency you can change your W-4 easily at anytime online.
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Re: Late taxes, I Bonds and justifying procrastination

Postby VictoriaF » Sun Mar 24, 2013 2:45 pm

Investor2 wrote:By the way, rather than sending in $5,000 with an extension request, you can also change your W-4 toward the end of the year to increase withholding enough to ensure you have a $5,000 refund coming. At my agency you can change your W-4 easily at anytime online.


Thanks, but it's too late to change W4 for 2012. After I do my taxes, I will have a better idea of how much I need to overpay in W4 or Form 4868 for 2013. In the tax year 2011, I had many special circumstances, but 2012 and 2013 should be almost identical.

The thing that got me this time is that I have signed for several things in expectation that I would have plenty of free time thanks to the sequestration and furloughs. And they keep postponing it {loud sigh}.

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