Are you planning to file an extension?

The 2024 tax season is in full bloom - we greatly appreciate your patience and understanding if we are not as available (or perky!) as we normally are!

Here are a few updates and developments

United States Capitol Building in Washington_ DC with Tax Reform stamp effect

Some early developments

Although still early in the process, the Trump administration is laying the foundation for some key aspects they expect to be included in tax reform legislation this year. A few components being discussed are:

No tax on social security benefits
No tax on overtime and tips
Make most provisions of the 2017 Tax Cut and Jobs Act (TCJA) permanent
Increase the cap on State and Local Tax (SALT) which is currently $10K

Expect Delays is the sign nobody likes to see. This ultra dynamic 3D illustration of a steel flip countdown calendar is a great way to inform of impending waiting times.

Colorado e-filing dates

According to some recent insights obtained by the Colorado Society of CPA's, the Colorado Department of Revenue is still having delays but is expecting to begin accepting 2024 returns as follows:

Personal returns - during the week ending February 14th
Business returns - during the week ending February 21st

TAX EXTENSION words with calculator and clock with notebook

Help needed...

We have been blessed with healthy growth due to the many referrals we have gotten from our existing clients (thank you!). As we try to plan for and balance our workloads, it would be extremely helpful if we could identify anyone that is planning to file an extension (for a personal return and, if applicable, a business return). This will allow us to move these off our immediate "to do" list and plan accordingly.

A few reminders on extensions:

There is no charge for us to file an extension for you;
There is no harm to file an extension as you can still decide to file on time if you change your mind.
An extension only extends the time to file your actual return - it does not extend the time to pay what you are expected to owe.
As a result, there are 2 types of extensions you can file
A $0 extension (for those expecting refund or small amounts owed)
An extension that includes an estimated payment
If considering making a payment with the extension, you can avoid a potential underpayment penalty if the total taxes you have paid (through W2/1099 withholding and/or estimated payments) is at least the lower of two amounts

90% of the actual taxes you owe when the 2025 return is filed or
100% of the total taxes you paid on the 2024 return (line 24 on form 1040)

Note, if your 2024 AGI (line 11 on form 1040) was over $150,000, use 110% of the taxes paid in 2024

If you would like to file an extension, please send us an email requesting us to do so. If you want to make an estimated payment with the extension, please indicate how much you want to include with the extension or call us to discuss further.

THANKS FOR YOUR ASSISTANCE!

Please welcome Kerri Pfund to our team!

We are so excited to announce that Kerri Pfund is joining our team as Office Assistant at our South Quebec location. For those that call or stop by that location, please say hi and welcome her with open arms as she helps us get through our busy tax season!