It's Tax Time!! - Part 2
- spencerdrobertson
- Jan 26
- 3 min read
Welcome back! Last week we covered key topics as it relates to filing your taxes such as: who needs to file, when tax returns are due, how you can file your taxes, refunds, and much more. This week we are exploring key topics such as extensions, and taxpayer responsibilities.
Can I Extend My Return?
Have you ever planned to do something on time but for whatever reason you found yourself in a position where you needed more time? We're all human and things happen. Life may get in the way, or we may forget. Either way, if you find yourself in a situation where you're not able to file your taxes on time, you can extend your return. A couple of key things you should keep in mind when extending your return includes:
Original Return Due Dates:
S-Corps and Partnerships due March 15, 2025
Individual, C-Corps, Trust/Fiduciaries due April 15, 2025
Extended Due Dates (6 months):
S-Corps and Partnerships due September 15, 2025
Trust/Fiduciaries due September 30, 2025
Individual, C-Corps due October 15, 2025
Forms to File for an Extension (see picture below):
Form 4868: Individuals
Form 7004: all entities except for individuals.
Taxpayer Beware: How to Avoid Scams & Fraud
Tax season can be a hectic time and as a result the amount of scams and the chance for fraud increases tremendously. Please remain vigilant as you or someone else is preparing your tax return. See below for a few tips on how to avoid scams and fraud.
Guard Your Personal Information: Be cautious about sharing your Social Security number, bank account details, or other sensitive information. Only provide this information on secure websites or to trusted professionals.
Watch Out for Fraudulent Tax Preparers: Choose a licensed, reputable tax preparer. Some reputable credentials you can look out for include individuals with a Preparer Tax Identification Number (PTIN), Certified Public Accountant (CPA) license, and Enrolled Agent (EA) license. Although tax preparers may have these credentials, it's equally important to watch out for any guarantees or anything suspicious. If it's too good to be true, it usually is...
Taxpayer Responsibility
While you may hire a tax professional or use software to prepare your return, you are ultimately responsible for ensuring its accuracy. Here are a few key things to keep in mind:
Review Your Return: Double check to make sure your personal information, address, income, and deductions are accurate.
Keep Records: Save copies of your tax return and any supporting documents. A good rule of thumb is to keep copies of your tax return from the previous three to seven years.
Deductions & Credits
This is a common topic and quite frankly deserves its own blog post. I will discuss in more detail in the coming weeks of what a deduction is, how you can claim them, and common types of deductions. For now, the key thing to know is that you have a chance to lower your taxable income through deductions and/or credits. Common examples include:
Child Tax Credit
Education Credits
Earned Income Tax Credit
Conclusion
Again, taxes can be a complicated topic and can be quite confusing. At Affordable Knowledge, it is our goal to make taxes less complicated. Be sure to extend your return if you are unable to file your tax return timely. Also, be sure to watch out for any scams and fraud. It is ultimately your responsibility as the taxpayer to make sure your tax return is accurate. Lastly, be sure to take advantage of deductions and/or credits.
For any additional questions, please reach out to affordableknowledgellc@gmail.com to learn more about how we can help you during this tax season.
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