IRS Explains How to File For an Extension

Extension of Time to File Your Tax Return

April 17 is the deadline for most taxpayers to file an extension and to?pay taxes owed?to avoid penalty and interest charges. If you file for an extension, your return is due October 15, 2018. Special rules may apply if you’re in the?military?or?live outside the U.S.

Need more time to prepare your federal tax return? This page provides information on how to apply for an extension of time to file. Please be aware that an extension of time to file your return does not grant you any extension of time to pay your taxes.

E-file Your Extension Form

Individual tax filers can?e-file their extension form for free?using Free File.

Extension Forms by Filing Status


Form 4868,?Application for Automatic Extension of Time To File U.S. Individual Income Tax Return

Special rules?may apply if you are:

????????? Serving in a combat zone or a qualified hazardous duty area

????????? Living outside the United States

You can also get an extension by paying all or part of your estimated income tax due and indicate that the payment is for an extension using?Direct Pay, the?Electronic Federal Tax Payment System?(EFTPS), or a?credit or debit card. This way you won’t have to file a separate extension form and you will receive a confirmation number for your records.

Estate Planning: Intro to the Essentials

On March 13th, my firm held the third live webinar in our Financial Boot Camp series titled?“Estate Planning: Introduction to the Essentials”?which was recorded and is now online.

Alex Oliver from First National Corporation?and?Sean Hagan from Eskow Law Group?discussed a variety of topics. Please view the webinar and skip to the topics most relevant to you:

  • 00:00: Introduction
  • 04:23: The importance of estate planning and why we procrastinate
  • 08:21: Defining estate planning and the benefits of a plan
  • 11:24: Federal and state estate tax
  • 13:03: Estate planning process
  • 16:33: Special situations
  • 20:34: Sean Hagan introduction
  • 23:15: Estate planning tools
  • 24:38: Last will & testament
  • 29:26: Trusts
  • 35:26: Durable power of attorney
  • 37:09: Health care proxy
  • 38:53: HIPAA Authorization
  • 39:49: Living will or advance directive
  • 43:44: Gift planning
  • 49:26: Take action and monitor the plan
  • 52:02: Conclusion

HSAs Mke a Great Buy and Hold Proposition

Are you aware that there is an investment option available that allows for tax-deductible contributions and also for tax-free distributions?

First introduced back in 2004, Health Savings Accounts offer individuals that unique winning combination. The favorable tax advantages of HSAs has caused them to become increasingly more popular in recent years.

To be eligible to contribute to an HSA, you need to have a qualifying high-deductible health insurance plan in place,?Your health insurance company can let you know whether the medical insurance product you currently have with them qualifies.

Here are the four tax advantages that come with HSAs:

Money contributed into an HSA is tax-deductible.? Either you contribute money into an HSA on your own and/or your employer contributes on your behalf.

Money invested within the HSA is your money and grows tax-deferred.? And unlike Flexible Spending Accounts (FSAs) offered to you as part of your employer benefit package where you set aside a certain amount of money each year to pay for your family’s healthcare costs with pre-tax dollars, there is no “use it or lose it” pitfall with HSAs, allowing the account can grow in value over time.

Money can be withdrawn tax-free from your HSA at any time to pay for your family’s healthcare expenses.

Any money remaining in your HSA upon reaching the age of 65 is available to subsidize your retirement.? You will owe taxes but no penalties on money taken out at that time that is not used for your family’s healthcare costs once you turn 65.

With tax-deductible contributions and tax-free distributions, we are seeing a lot of our clients who have decided to let their HSAs grow instead of taking out money to pay their current year’s medical expenses.

Adding money to an HSA when eligible makes perfect sense thanks to the tax deductibility of those contributions.? For 2018, the maximum contribution is $6,850 for families and $3,450 for single individuals.? Anyone 55 or older can contribute an additional $1,000 per year.

The question is what you should do about paying your family’s healthcare costs when you have money in an HSA and have most likely been given a debit card connected to your HSA? to easily pay your co-pays, deductibles, and other costs. I’ve spoken to many clients about this recently, and we came to the conclusion that NOT using money in your HSA account actually seems to make the most financial sense.

Instead, pay for the medical expenses out of money sitting in your checking account since that money is either not invested, is earning .1% in a bank savings account, or will ultimately be invested in a taxable account.? Doing so will allow the HSA to remain fully invested and growing within its tax-deferred envelope.? Why reduce the money growing within the HSA when there is no requirement mandating you to do so?

Lastly, for people looking to build up assets within their HSA, there are a lot of options out there now to purchase mutual funds and take full advantage of years of compounded tax-deferred growth.