I usually use the short form every year and I was adviced that I should be using the long form since I have a lot of business deductions. I just felt this is a big hassle for me to do and it's the only reason why I always do the short form. However, I have been thinking about it but I don't know if I should do it since it's already past the filing dates. What should I do? Will I still be allowed to do deductions even though it's past the filing date?
2006-07-09 03:16:41 · 5 answers · asked by JEL 1 in Business & Finance ➔ Taxes ➔ United States
By all means use the Employee Business Expense Form 2106 deductions or the Schedule C Self Employment deductions, depending on what employment wages the deductions are from. The "hassle" is many times worth the money!! Filing late is filing late and it is totally proper and acceptable to take deductions you are entitled to. You'll pay a penalty for late filing probably, but you'll have that wether you take deductions or not. If you have a balance due of any kind you'll pay a little interest ( which is why it is important to file a.s.a.p.) ..time is definatley money at that point. If you are due a refund it will be issued in the usual fashion. So, stop procrastinating and file your taxes. Seek a tax professional's help if you want to get the full benefit of all your deductions, many stay open year round. Good Luck!
2006-07-15 15:26:43 · answer #1 · answered by lade40free 2 · 0⤊ 0⤋
The extension is only an extension to file without a late penalty if you owe you will owe interest also until you pay.
If you have 'business' deductions as an employee for someone then you should use Schedule A for the long form (1040) and get back some money or owe less. If you know what youre expenses are its not hard to do. The other items on Schedule A are also easy: State income taxes (from your W2) real estte taxes and mortgagte interest from your end of year statement, and contribution to charities. Your business expenses lose 2% of your income, you have to 'eat' that, but the other 98% is part of your deducitons. Doing this is like paying yourself since the standard deduction is 5000, you probably have more than that to do the Schedule A.
2006-07-09 18:29:14 · answer #2 · answered by Dennis D 1 · 0⤊ 0⤋
You can file any form you want to, and take all the deductions you are entitled to, even though you're filing late. There just may be a small penalty charge and interest since it's late.
If you can't figure out how much the penalty is, IRS will calculate it for you and tell you by mail. IF you were due a refund, they will deduct the penalty and send you the rest.
2006-07-09 10:21:26 · answer #3 · answered by dognhorsemom 7 · 0⤊ 0⤋
You still use the same forms, whatever form is appropriate for your situation. If you owe, there will be a penalty and interest added to the tax you owe. If you are getting a refund, there won't be a penalty, since penalties are calculated as a percentage of the unpaid tax.
2006-07-09 13:44:55 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
IF YOU HAVE A BUSINESS, YOU HAVE TO USE A FORM, IT DEPENDS IF YOU ARE SOLEPROPERTORSHIP, OR S-CORPORATION, OR C-CORPORATION OR PARTNERSHIP.
EVERY ENTITY HAS ITS KIND OF FORM.
IF YOU HAVE JUST A PERSONAL BUSINESS YOU HAVE TO USE FORM 1040 SCHEDULE C. YOU NEED INFO FROM BOOKKEEPER. IT IS BETTER.
2006-07-09 11:15:36 · answer #5 · answered by natajoromero 2 · 0⤊ 0⤋