No doubt most of you have already put your 2018 tax return to bed, but what about those of you who, for whatever reason, haven’t filed your return and you don’t expect to be ready to file it by April 15th.
The most important thing you can do is to file an extension. File a Federal Form 4868 – Application for Automatic Extension of Time to File US Income Tax Return – by April 15th. In many cases, you also have to file an extension request in any state you expect to file a return. North Carolina has a separate form – Form D-410 – that must be filed in addition to the Federal extension request. Some states don’t have state income tax, and some states allow an extension based on the filing of the Federal form, so there is no additional form required. North Carolina is considering accepting the Federal extension in lieu of Form D-410, thus making an extension even easier in North Carolina. As the form says, the extension is automatic, and it extends the due date of the return generally for six months to October 15th.
Small business is the heart of the economy, and family businesses keep the blood (and cash!) flowing. In fact, according to a recent SCORE survey, family owned businesses are the biggest job creator in the US, employing 60% of the workforce and generating 78% of all new jobs. But only 30% of these businesses make it from the first to second generation intact; fewer than 12% make it to the third generation; and only 13% will remain in the family for more than 60 years.
Being self-employed creates a lot of tax questions. Two that I see most frequently concern making sure you get all the deductions you’re entitled to and how you pay your tax. I only have enough space here to hit the highlights but hopefully this will help.
As tax filing season speeds on toward that inevitable April 15th deadline, I want you to take a moment before you either hit send on your e-file, drop the return in the mailbox or sign the electronic filing authorization form for your tax preparer, and make sure you haven’t missed a retirement plan deduction.