DABearSoX Posted April 15, 2009 Share Posted April 15, 2009 So my girlfriends parents are pretty incompetent. They never really gave her guidance on the whole real life thing and she is just sorta lost out there. She asks me yesterday if she has to file for anything since she didn't work at all last year. Well, she makes money off of a trust fund of her own and also has income from her fathers trust (all the grandchildren earn dividends off the fathers trust or something which was a stipulation of the grandfather when he died). So I know that she has to file, and I know that she owes the government money. Dealing with all the procrastinators myself (I work in at a department that acts as a 3rd party trustee to banks retirements accounts) I am pretty swamped these last few days but I also have worry about getting her s*** out of the way. I talked to her mom yesterday to see if she has any government reporting forms that were sent to her house in Cali and she is pretty sure I have the only thing she got which is a K1 from her fathers trust account. Well, I am not so sure about this especially after she tells me - oh well I file an extension every year blah blah blah which really pisses me off b/c I really don't think it is that hard to file taxes in the 3 months the govt gives you. So i can see her mom is not on top of things at all and would like to get everything I need before I take on this endeavor. Parents are divorced and what not and I am not sure if her father claimed her as a dependent while she was in college last year or if the 20K+ he gave her for school last year is taxable income on her. Last year I did them for her and I was unaware of all this family money she gets and she got a letter saying she owed the govt 3 grand for taxes last year so I felt like s***. This year I don't want to #### it up and I want to actually teach her how to do it herself. So this leaves me with filing an extension today so that we can get them correct the first time. I always file my taxes when i get all my (1099s, W2s, etc) usually done by the beginning of February so I have no idea about this extension stuff. From what I have read you basically just have to estimate her taxes owed and pay them along with the 4868 form. My question is how the hell do I estimate them, and what if I grossly under estimate them, or she has no money at this point to pay the estimated taxes owed? Quote Link to comment Share on other sites More sharing options...
kapkomet Posted April 15, 2009 Share Posted April 15, 2009 QUOTE (DABearSoX @ Apr 15, 2009 -> 12:21 PM) So my girlfriends parents are pretty incompetent. They never really gave her guidance on the whole real life thing and she is just sorta lost out there. She asks me yesterday if she has to file for anything since she didn't work at all last year. Well, she makes money off of a trust fund of her own and also has income from her fathers trust (all the grandchildren earn dividends off the fathers trust or something which was a stipulation of the grandfather when he died). So I know that she has to file, and I know that she owes the government money. Dealing with all the procrastinators myself (I work in at a department that acts as a 3rd party trustee to banks retirements accounts) I am pretty swamped these last few days but I also have worry about getting her s*** out of the way. I talked to her mom yesterday to see if she has any government reporting forms that were sent to her house in Cali and she is pretty sure I have the only thing she got which is a K1 from her fathers trust account. Well, I am not so sure about this especially after she tells me - oh well I file an extension every year blah blah blah which really pisses me off b/c I really don't think it is that hard to file taxes in the 3 months the govt gives you. So i can see her mom is not on top of things at all and would like to get everything I need before I take on this endeavor. Parents are divorced and what not and I am not sure if her father claimed her as a dependent while she was in college last year or if the 20K+ he gave her for school last year is taxable income on her. Last year I did them for her and I was unaware of all this family money she gets and she got a letter saying she owed the govt 3 grand for taxes last year so I felt like s***. This year I don't want to #### it up and I want to actually teach her how to do it herself. So this leaves me with filing an extension today so that we can get them correct the first time. I always file my taxes when i get all my (1099s, W2s, etc) usually done by the beginning of February so I have no idea about this extension stuff. From what I have read you basically just have to estimate her taxes owed and pay them along with the 4868 form. My question is how the hell do I estimate them, and what if I grossly under estimate them, or she has no money at this point to pay the estimated taxes owed? I would just pay what she did last year. You need to get to 90% of the estimate to avoid penalties. If you don't have the money, you'll have to pay penalties and interest, and it's steep. Even if you cannot pay, you've GOT to file. There is an installment agreement form... which you can use. Quote Link to comment Share on other sites More sharing options...
DABearSoX Posted April 15, 2009 Author Share Posted April 15, 2009 QUOTE (kapkomet @ Apr 15, 2009 -> 06:52 PM) I would just pay what she did last year. You need to get to 90% of the estimate to avoid penalties. If you don't have the money, you'll have to pay penalties and interest, and it's steep. Even if you cannot pay, you've GOT to file. There is an installment agreement form... which you can use. good info....as for the money its not really a problem...she comes from a rich family...it just may not be on her debit card today. Its just a little overwhelming for me b/c I do my taxes with plain old W2s and 1099s whereas now its K1s and other weird investment stuff so I want to make sure i get it right this time around... Quote Link to comment Share on other sites More sharing options...
Steve9347 Posted April 15, 2009 Share Posted April 15, 2009 QUOTE (DABearSoX @ Apr 15, 2009 -> 01:15 PM) good info....as for the money its not really a problem...she comes from a rich family...it just may not be on her debit card today. Its just a little overwhelming for me b/c I do my taxes with plain old W2s and 1099s whereas now its K1s and other weird investment stuff so I want to make sure i get it right this time around... Your girlfriend should take some owner ship in this and not make you do it... but you're a good guy, and she's rich, so I guess it's worth sticking it out! Quote Link to comment Share on other sites More sharing options...
kapkomet Posted April 15, 2009 Share Posted April 15, 2009 QUOTE (DABearSoX @ Apr 15, 2009 -> 01:15 PM) good info....as for the money its not really a problem...she comes from a rich family...it just may not be on her debit card today. Its just a little overwhelming for me b/c I do my taxes with plain old W2s and 1099s whereas now its K1s and other weird investment stuff so I want to make sure i get it right this time around... Send a check. All you need is the certified mail saying you sent it. Disclaimer: This does not construe official tax advice, only an opinion. Quote Link to comment Share on other sites More sharing options...
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