Hi all, How to estimate Tax liability for tax extension?

I am trying to fill up Tax extension form 4868 and I don't know how to estimate my total tax liability (section 4 in the form) since I lost my w2 form and still have not receive some of my income statements from bank. Any suggestion ? Thanks johnsmith

Reply to
mohammad.munir
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wrote

Well, you made the money. Was it more or less than last year (2006)?

Seriously. It's just a guess.

Granted you might not know if it was just a few dollars differences, but you'd remember getting a buck an hour raise or that $1000 bonus.

Worst case, use last year's income numbers.

Reply to
Paul Thomas, CPA

Even if I guess a estimated tax liability amount I also need to deduct my expanses and some expanses I am not sure that is why I need the extension to sit with an CPA. For Instance: If I put $10000 for now but later I found that the tax liable amount is only $5000, will that be a issue for IRS?

Reply to
mohammad.munir

wrote

The only time it should be an issue if you have a balance due with the return when you file. If that's an issue, then guess high on the income (and resulting taxes), and make some payment with the extension although that's not absolutely necessary.

Reply to
Paul Thomas, CPA

If you overpay now, you'll get a refund when you file. The IRS won't mind.

If you underpay now, there's interest and possibly penalties when you file.

Seth

Reply to
Seth

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