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Ugh, I totally dropped the ball on taxes this year and missed the April 15 deadline for 2023 taxes. It's already late June and I haven't done anything about it yet! I've been using freetaxusa for the past few years but now I'm confused about what to do. When I go to their site, should I be selecting 2023 or 2024 to file my late taxes? And what happens after I complete the filing process? Are there extra steps I need to take because I'm late? Can I still do everything online or do I need to mail physical forms now? Also, I'm worried about penalties... how bad is it going to be? I should be getting a refund (I think), if that matters. Thanks in advance for any help! This is stressing me out way more than it should.
Hey tax folks! I'm running a small landscaping business and just purchased a new commercial mower for $15,800. My accountant mentioned I could take a Section 179 deduction for the full amount this year instead of depreciating it over several years. I understand this will reduce my taxable income by $15,800, but I'm confused about what happens to that "profit" I'm not paying taxes on. Does it just disappear? Or is it still considered part of my business assets somewhere? If I sell the mower in a few years, will I have to pay taxes on the sale price since I've already deducted the full purchase amount? This is my first year with major equipment purchases, and I want to make sure I understand the tax implications before filing. Any help would be appreciated!
One thing nobody has mentioned is that Section 179 doesn't have to be all-or-nothing. You can choose to take just a portion as Section 179 and depreciate the rest normally. This has helped me with tax planning in my small fabrication shop. For example, last year I bought a CNC machine for $32,000 but only took $20,000 as Section 179 and am depreciating the remaining $12,000. This gave me immediate tax savings while still leaving some depreciation deductions for future years. Might be worth considering in your situation.
That's actually really helpful - I had no idea you could split it up like that! How do you decide what portion to take as Section 179 vs regular depreciation? Is there a formula or rule of thumb?
I basically look at my projected income for the year and figure out how much deduction I need to keep myself in a favorable tax bracket. If taking the full Section 179 would push me too far down or waste the deduction, I'll split it up. For most small businesses, it makes sense to take enough Section 179 to get your income to a target level, then save the rest for future years when you might need the deductions more. Your accountant should be able to model this with your specific numbers. It gives you more flexibility than the all-or-nothing approach most people think is required.
Just a warning from someone who made this mistake - remember that Section 179 requires the equipment to be used more than 50% for business. I took Section 179 on a truck that later became more of a personal vehicle, and got hit with a nasty recapture tax bill. Make sure that mower stays in business use!
Hey everyone, I'm in a bit of a pickle with the IRS. I need to file extensions for my taxes from 2016, 2023, and even 2024 (yeah, I know, I'm planning ahead lol). Plus, I owe some money and want to request an extension for that too. Anyone been through this before? Any tips on how to handle multiple year extensions and owing money at the same time? I'm feeling pretty overwhelmed here.
Whatever you do, DON'T ignore this. I made that mistake and ended up owing way more in penalties and interest. Face it head-on, even if it's scary.
Hey everyone, I'm in a bit of a pickle with the IRS and need to set up a payment plan. Anyone been through this before? What should I expect when I call them? Any tips or advice would be really appreciated!
Quick question - does anyone know if setting up a payment plan affects your credit score? I'm trying to buy a house soon and I'm worried this might mess that up.
Hey everyone, I'm having some issues with my tax refund. I checked my transcript and it says "no file processed". Has anyone else run into this problem? I'm not sure what to do next or why this is happening. Any advice would be really appreciated!
Here's what you need to do: 1. Double-check all your documents for errors 2. Verify your income against what your employer reported 3. Check if you owe any back taxes or have outstanding debts 4. Try calling the IRS early in the morning (right when they open) 5. If all else fails, consider using a tax advocate service If none of these work, you might need to file an amended return. Don't panic though - sometimes these issues resolve themselves if you give it a little time. The IRS is dealing with a huge backlog, so patience is key. Good luck!
Angelica Smith
Just to add another perspective - if you're expecting a refund, you have up to 3 years from the original due date to file and still get your money back. So for 2023 taxes, you have until April 15, 2027. After that, you lose your refund. But if you owe money, you should file ASAP to minimize penalties and interest which start accumulating from the original due date (April 15, 2024).
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Jeremiah Brown
AuthorThank you so much for mentioning this! I am pretty sure I'll be getting a refund based on my withholding, but I didn't realize there was actually a 3-year window. That takes some pressure off, though I still want to get this done soon. Do you know if the refund amount stays the same over those 3 years, or does it increase with interest or anything?
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Angelica Smith
Unfortunately, the IRS doesn't pay interest on refunds if you file late. The refund amount stays exactly the same whether you file on time or 2 years late. That's actually why it's always best to file on time even if you're getting a refund - you're essentially giving the IRS an interest-free loan of your money for however long you delay.
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Logan Greenburg
Has anyone used freetaxusa for late filing specifically? Is there anything special I need to know about using it for late returns? I'm in a similar boat but worried the software might be different somehow for late filers.
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Charlotte Jones
I used freetaxusa for a late 2022 return last year. The process is exactly the same as filing on time. The software doesn't change at all - you just select the correct tax year (2023 in your case) and proceed normally. They keep the previous year's software available specifically for late filers.
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