….Or are you like me, and have been procrasting? The deadline has alway been on or around April 15th. So why is that so many of us get to April 1st and act like it has been sprung on us like a surprise event?
The good news is that the government has given us a reprieve until October! This only affects certain counties within those states that were affected by the severe weather we experienced over the last few months. Fortunately (?) Los Angeles County falls under that umbrella. It really is a case of every cloud…. If you aren’t certain which jurisdiction you fall under you can check at www.irs.gov – this is also where you can seek free advice and utilize their tax clinics plus so many other resources to help with preparing and filing.
Every year I promise myself that next time I will have everything ready by the first week of March, but have never been able to follow through. Last year I circumvented the tax prep angst by filing for an extension well in advance of the looming deadline.
An extension allows taxpayers a six-month reprieve to get their accounts in order and whilst it doesn’t cost anything, please keep in mind that it is not an extension to pay what you owe. A ballpark figure is fine. If your income hasn’t changed much from the previous year you can base it on that. You will get a refund if you overpay and a penalty of approximately 5% if you underestimate.
Like green card holders, if you spend at least 183 days in the United States and are a holder of a nonimmigrant visa, you must file your taxes. In some case it is even recommended to do so if you had little or no income as you may be entitled to tax credits. Make sure to read up on the FBAR too – this is for reporting of foreign accounts. I’ve had a few Brits in LA members tell me they came unstuck by not being aware of the procedure and even worse hiring accountants and advisors who were ignorant of the laws too.
I pay a CPA to help prepare and file my tax return as I am fearful that I will make a mistake too. Why does just the thought of taxes cause so many of us to panic? I can understand that the likes of Jimmy Carr or Gary Barlow et al. might have just cause to be anxious, but the HMRC and IRS manage to make even the most law-abiding citizens quiver in their boots. As in the scheme of things paying our taxes should be a good thing and something to celebrate, as it provides so much for our society and infrastructure. So it makes no sense that we are all encouraged to despise it or feel like we are being tricked somehow. I suppose it doesn’t really help when we see so many tax dollars wasted or areas that could do with a bigger allocation.
Either way, you now have another few months until you have to figure out what you are going to contribute. If you have any questions or recommendations on this or any other topic please drop us a line at info@britsin.la
Craig and I are planning to attend Sandro’s Pub Quiz at O’Briens in Santa Moinica next Tuesday, so make sure to say hello if you are there too.
Cheers!
Eileen
