I’m sure you’ve heard all the noise about the BIG claims of mega-success by businesses who are using Social Media to promote their businesses. But is it really just that – a lot of NOISE that doesn’t mean a hill of beans in the real world? Or is this  an important trend that small business owners need to pay attention to for the sake of their bottom line?

Cut through the hype and find out what the real deal is with social media. Get straight answers from an expert who’s actually doing it and knows first hand whether it’s really just a big waste of time, or if you can truly use it to market your business profitably.

Join me, Gabrielle Fontaine, and my special guest, marketing expert and social media guru, Ely Delaney as we cut through the hype and finally learn…

* How to use social media to build relationships with prospects, customer and referral sources

* How social media is changing the way we do business

* How to easily get up and running on the three biggest and most strategic social media networks

* How to attract quality “friends” and “followers” without getting caught up in the numbers game

* What free automation tools you can use to maximize your reach and save time in the process

* How to avoid getting sucked in to wasting a ton of time keeping up with your social posting

* What NOT to do so you don’t make enemies, or worse, get banned from the social networking sites

* How networking online is not the same as in-person networking

Find out for yourself why such respected business authorities as Inc. Magazine are now saying that Social Media really is worth your time.

Isn’t it time you found out how to put it to work for YOUR business? Now you can, right after you attend this cut-to-the-chase, FREE, get-action webinar.

Join us Thursday, July 8 at 8:00 PM Eastern Time for this LIVE webinar training.

“Social Media” Online Business Networking Basics”

Grab your seat as our free guest right here:

=> Register Here

.

If you are using any version of QuickBooks 2007 (or older), you need to pay attention to this.

Effective May 31, 2010, Intuit (the makers of QuickBooks financial software) will discontinue live telephone support and add-on services for QuickBooks 2007 software (all versions).

Services that will be discontinued:

Assisted Payroll
Basic Payroll
Enhanced Payroll
Standard Payroll
Employee Organizer
Merchant Service
Billing Solution (formerly QuickBooks Online Billing)
QuickBooks Email
Bill Pay
Online Banking
Terminal Download
Technical Support Plans and Services

This is not really surprising news, since according to Intuit’s official Discontinuation Program, they only support “the most current version of QuickBooks, plus the prior two versions.” So that means after May 31st, QuickBooks 2010, as well as all 2009 and 2008 versions, are the only years they will continue to support.

Do I HAVE to upgrade?

That depends on how you use the software.

If you are currently using an older version of QuickBooks and do not need any technical support or add-on services, you can continue to use the software as you have in the past. It will keep working just fine.

However, if you need to use add-on programs and support for services such as payroll or merchant services,  you will need to install and register a supported version of the QuickBooks software by May 31, 2010.

But what if I don’t know which version of QuickBooks I’ve got?

That’s easy. If you don’t see which version you have on the “splash” screen when you are opening QuickBooks, then from within the program simply press Ctrl+1 (from the keyboard, not the number pad) and you will get all the information about your current QuickBooks program, including which version you’re using.

An important reason to upgrade if you’re still using QuickBooks 2007 (or older) is because even though Intuit promises to help you out if you lose your keycodes or have licensing issues, their terms and conditions say they will do so only “if that data is available.” In other words, there’s no guarantee they can help you if you are still using an old unsupported version, and you lose your password, have data recovery issues, or need a replacement software CD.

This is significant.

If you are locked out of your data file because you’ve lost your administrator’s password, or you can’t get into your program because of a registration issue, you’re dead. Not being able to access your financial records could literally cripple your business.

But if you are determined to stick with an outdated version of QuickBooks and you do happen to lose your password, you can use the Automated Password Reset Tool available for free on the QuickBooks website. But of course, there’s no guarantees there either. You are still on your own.

If, however, you are ready to give in and upgrade, here are my best suggestions.

Your Upgrade Options

You can, of course, upgrade directly through the Quickbooks website and get a $40 discount (as of this writing, the upgrade price is $159.95)

But you quite likely can get a better price by shopping around a bit. Generally you’ll find QuickBooks at all the major office supply stores locally and online. Amazon is currently selling QuickBooks Pro 2010 for $123.

Some other places you could check out are:

www.staples.com
www.officedepot.com
www.officemax.com
www.bestbuy.com
www.costco.com
www.samsclub.com

And if you are a real bargain hunter, you might be able to find a legal copy of a supported version (QuickBooks 2008 or 2009) on eBay. But realize that you’ll be in the same pinch in another year or two.

So my best suggestion is to just bite the bullet and upgrade to 2010 and be done with it (for three years anyway). There are some great new, truly helpful features you’ve been missing out on in the years you’ve fallen behind.

Getting Up To Date Using QuickBooks

For quick and free mini-lessons in QuickBooks, make sure you get in on my QB QuickTips video series.

And if QuickBooks has always been a struggle for you, why not go all out and get some proper training on using the program more easily and efficiently? I’ll teach you all the must-know functions in QuickBooks in my QuickBooks Core Training course. (The next class starts this coming Monday, May 24th.)

If you are upgrading from QuickBooks 2005 or older, training is especially recommended for you, since QuickBooks is practically a whole new program since that far back. it won’t be an easy transition without some assistance.

We are already one-third of the way through the year. Have your revenue numbers been improving?

I came across some revealing stats recently that are quite eye-opening about what’s really going on with A LOT of small businesses. I made a quick video to show what the numbers are really telling us about what we need to be doing to turn it all around.

Click above to start video

This is important stuff for so many entrepreneurs. If you know someone who could benefit from this new information, by all means, go ahead and let them know about this video. They’ll appreciate it, and so will I!

www.CashFlowMasteryCourse.com

As an entrepreneur, what does this “new economy” mean for you and your business?

Do you have a plan? How are you doing so far with this year’s goals?

If you’re still trying to navigate in the right direction, that’s great! Even if the revenue numbers aren’t quite where you’d like them to be (yet), here’s a short video that I think you’ll enjoy. It helps to put things in the right perspective…

While this is definitely one of my favorite “feel good” videos, there are some key lessons here:

1. The greatest innovation and success happens when our back is against the wall and we are forced to find new ways for doing things.  And entrepreneurs are usually the ones blazing the trails to success

2. There are opportunities to seize (lots of them) by focusing on the positive vision of what your business could be. And the rewards belong to the thinkers and the doers (that’s YOU!) and not those with privilege or resources.

The new economy really means it’s our time to shine.

So what could you do TODAY to move one step closer to your vision for yourself and your business?

The major tax deadline of April 15th is quickly approaching for non-corporation businesses (sole proprietorships, partnerships and LLCs). Here are five quick tax-savings tips you don’t want to forget before the deadline arrives in all its glory.

1. Home Office Deduction

Generally, you can deduct business expenses that apply
to a part of your home if that part is exclusively used on a regular basis…

• -As your principal place of business,
• -As a place to meet with your patients, clients, or customers in the normal course of your trade or business, or
• -In connection with your trade or business if it is a separate structure that is not attached to your home.

This deduction includes both expenses that are directly related to your home office (painting, repairs, etc.), as well as a portion of your indirect costs, which include utilities for your whole house, mortgage interest or rent, real estate taxes, even depreciation on your home.

This can really add up to a substantial deduction.

And if you took the home office deduction last year, but couldn’t use it all (it’s limited by your business profit), you can also carry over any leftover deduction you couldn’t use last year and add it to this year’s deduction. (Check your 2008 Form 8829 and look to see if there is any carryover available for 2009 at the bottom of the form.)

The home office deduction is worth the trouble because it also reduces your self-employment tax amount.

Click here to get the details on how to take the deduction here:
IRS Instructions for Form 8829

2. Write off new equipment (Section 179 deduction)

Rather than depreciate business property over several years, you can choose to expense business assets in the year of purchase. Here are basic guidelines for what qualifies:

• Tangible property, like machines, equipment, furniture
• Off-the-shelf computer software

It does not apply to:

• Real estate
• Property used less than 50% in your business
• Property you inherited or received as a gift

You can “write off” (deduct as an expense) newly purchased assets up to $250,000 for 2009.

This is another smart deduction that helps to reduce both your income tax and your self-employment tax.

Click here to get all the specifics here:
IRS Instructions for Form 4562

3. Use Per Diem Rates for Business meals & incidental expenses while Traveling

As long as you can document your away-from-home business travel, you can deduct a per diem rate (per day) for meals and incidental expenses instead of the need to keep records of and report your actual expenses. This can give you a much bigger deduction if you spend less than the daily rate, not to mention it makes the recordkeeping easier.

Of course, you only get a 50% deduction on meals and entertainment for business purposes, but if you’re frugal, you will still get a much better deduction than you would with claiming actual expenses.

And, yes, this one reduces both income and self-employment taxes.

Click here to get all the specifics here:
IRS Publication 1542

4. Maximize your HSA Contributions

If you have a high-deductible health plan (HDHP) for your health insurance and a Health Savings Account (HSA) for your out-of-pocket medical expenses, you have until April 15th to make your 2009 deductible contributions. That’s up to $3,000 ($4,000 if you are over 55) for a self-only coverage plan, or $5,950 for a family coverage plan.

While this one won’t reduce your Self-employment tax, it is a nice deduction in addition to any self-employed health insurance deduction you can take for what you paid in insurance premiums on that high-deductible haelth plan. This winning combination makes 100% of your medical costs deductible, even if you do not itemize. That’s sweet.

Click here for all the specifics are laid out here:
IRS Publication 969

5. Maximize your IRA Contributions

If you have a traditional IRA, you can still make your 2009 contributions up until April 15, and still claim any deduction you are entitled to (usually for a traditional IRA as opposed to a Roth IRA) now. This is an especially smart choice because when you make contributions to your retirment accounts, you will likely also get the retirement savings contributions credit (depending on your income level, among other things). It’s one of the very few times you can legally get a double-dip for a deduction.

General traditional IRA contribution limits for 2009 are:

$5,000 ($6,000 if you’re over 50 or older) – there are, however, several factors that affect how much of your contribution is deductible.

As a self-employed person though, you may seriously want to consider opening a SEP-IRA, since this type of retirement plan allows you to make larger contributions and thus get bigger deductions on your tax return.

IRAs have lots of twists and turns, but if you already have one set up, or want to set up a quick traditional IRA (you can do this easily) and make a contribution for 2009, it’s just smart to max out your contributions and take the deduction for 2009 by April 15.

Click here to get all the ins and outs of IRAs here:
IRS Publication 590
IRS Publication 560

To keep your tax bill as low as possible, the smartest choice is to do your tax planning BEFORE the end of the year. But at least these tips will help you pay as little as legally possible right now for 2009, and then be all the wiser for 2010.

It’s Gabrielle Fontaine with a heads-up critical update for everyone currently (or formerly) using QuickBooks software.

Intuit, the company that makes QuickBooks, just announced that there is a potential security risk that has been found that would allow hackers to access the data on your computer.

The threat is due to a newly discovered vulnerability in Microsoft’s ActiveX technology, which is commonly used by many popular computer programs.

===================================
QuickBooks Versions Affected By The Threat
===================================

All QuickBooks Simple Start, Pro, Premier and Enterprise Solutions versions, 2009 and older (including trial versions) are vulernable.  The new QuickBooks 2010 versions, however, are not affected.

Intuit updates its currently supported versions from time to time by releasing software patches. Each update or patch is given a “Release” number for easy identification.

Right now, downloading Intuit’s updates is the only immediate way to eliminate the vulnerability in currently supported versions of QuickBooks. In time, Microsoft will likely release a patch with
their regular security updates for ActiveX.

===================================
How To Protect Your Computer Now
===================================

All QuickBooks users of 2007, 2008 and 2009 versions should verify that they have downloaded and installed the most current updates.

You can check if your software is up to date by opening QuickBooks and then using the F2 key.

These are the most current updates that include a patch which eliminates this new threat:

QuickBooks 2009 – R8
QuickBooks 2008 – R10
QuickBooks 2007 – R13

The best way to stay up to date is to enable the automatic update feature AND to install those updates when prompted.

You can also manually download the latest updates directly from the QuickBooks website.

http://support.quickbooks.intuit.com/support/productupdates.aspx

===================================
If You Are Running QuickBooks 2006 or Older….
===================================

If you are running QuickBooks 2006 or older, you are vulnerable to this security threat. Since these versions are no longer supported by Intuit, there is no downloadable update. Your best defense is to upgrade your QuickBooks software to a supported version (2007-2009)
as soon as possible.

You can find both 2009 and the newest 2010 versions on amazon.com

Additionally, if you have an older version of QuickBooks installed on your computer but it is no longer in use, remove it by uninstalling the program to remove the ActiveX threat.

===================================
If You Are Running a Non-US Version of QuickBooks….
===================================

For Canadian versions of QuickBooks, you can download the updates directly from the Intuit website:

http://support.intuit.ca/quickbooks/en-ca/kb/update/update-quickbooks-to-new-product-update/Update_main.html

For UK versions of QuickBooks, you can download the updates directly from the Intuit website:

http://support.intuit.co.uk/quickbooks/en-gb/kb/update/update-quickbooks-to-new-product-update/Update_main.html

===================================
I’ve Made a Video to Show You Exactly What to Do
===================================

As an Advanced Certified QuickBooks ProAdvisor, I want to see you get the most out of your QuickBooks software. That’s why I created my free video training blog, QB QuickTips.

My latest video post walks you through each of the steps outlined above to show you exactly how to protect yourself from this new ActiveX threat.

If you want to stay informed about critical updates for QuickBooks like this one, as well as learn insider tricks and tips on how to use this powerful software for your business success, be sure and
sign up for the QB QuickTips notification list.

You’ll also receive private, subscriber-only bonuses that are not even posted on the blog.

Get your free subcription here:

===> http://www.QBQuickTips.com

If you’ve been feeling the pinch caused by our “new economy,” then you may be a sitting duck for business opportunity scam artists. At least that’s what the Federal Trade Commission (FTC) said in a press release issued this week. They announced an intensified crackdown campaign against a variety of scams tied to the down economy.

The FTC stated that there have been 120 law enforcement actions so far this year against those promoting dubious “opportunities.” The Commission alleged that a handful of widely publicized get-rich-quick schemes have already swindled over $300 million from unsuspecting consumers.

Why now?

In hard economic times, fraudulent businesses boom. The scammers know that when the money gets tight, emotions run high, and irrational decisions are more likely. That’s because distress caused by financial pain makes it easier to believe big promises of recession-proof income made quickly with minimal work.

We want to believe.

Warning Signs

According to the FTC, fraud is most often associated with investing in vending machines, display racks, pay phones, medical billing, work-at-home, and Internet-related business opportunities. Beware of promises to make lots of easy money in a short period of time with little effort or skill.

Another earmark of fraudulent operations is their high pressure tactics, often including telemarketing as part of the sales process. The aim is to make you feel like you will lose out if you don’t fork over your money immediately.

If you’re unsure, don’t let them pressure you with scarcity before you’ve gathered all the information you need to be comfortable with your choice. Listen to your gut. Use what I call strategic procrastination. If it is a truly viable business opportunity, it will still be there AFTER you’ve had all your questions answered. Otherwise, let it go. It probably wasn’t a good fit for you anyway.

You should also pay attention to specific claims about how much money you “can” make. The FTC Franchise Rule says if the seller is making earnings claims, they must provide proof for those claims. This includes the number and percentage of previous buyers who achieved at least the earnings promised.

If the cost of the program is $500 or more, they must back up their earnings claims in a written document. Otherwise, they are violating the law.

Are there testimonials? Be sure these are legitimate. Ask for contact information. The FTC requires business opportunity promoters to give you the names, addresses and phone numbers of at least 10 previous buyers who live the closest to you.

Personally interview these people, doing so in person if at all possible. It’s best if you can see their business operations with your own eyes. This dramatically reduces the chance of being misled by phony references. Don’t skip this step if the program calls for a substantial investment.

Does that mean all business opportunities are scams?

Sadly, these fraudulent business promotions make it harder to recognize legitimate businesses. They’ve mastered the same highly effective marketing tactics used by credible, successful companies.

So if a business, for example, is making a time-sensitive offer, or its program is limited in some way, it doesn’t necessarily mean it’s a scam. There are plenty of legitimate companies who offer valuable information for short time periods or on a limited basis for valid reasons.

But when they are making big promises with a big ticket price, you need to be careful and take the time you need to decide if it is the right decision for you. Whether it is a scam or not will usually become evident with due diligence.

Do your homework

First be clear on your own goals and objectives, and don’t make your decision based solely on emotion. Making smart choices means doing your homework.

Whenever starting any kind of business or going into a new market, you need to do your own investigation into whether there truly is an existing demand for the type of product or service you’ll be selling. That’s always true, regardless of whether you are considering the purchase of a business opportunity or not.

Be especially wary of those who claim you do not need to put much time or effort into the business to get big rewards. You may reasonably be able to achieve those kinds of results in the long run, but starting a business always involves risks and substantial work on your part in the beginning.

If you are required to sign a contract, consider discussing it with your lawyer and accountant first, especially if a sizable amount of money is involved.

It may also be wise to get information about the company from the Attorney General’s office, consumer protection agencies and Better Business Bureau. Just remember that a lack of complaints doesn’t necessarily mean that the business opp is a good one.

What if you’ve already been scammed?

If you’ve already bought into an “opportunity” that didn’t live up to its claims, and you’ve tried to get your money back without success, you may have been scammed.

But all hope is not lost, yet. You can take your case to the authorities.

Where to report fraudulent business opp promotions:

• The state Attorney General’s office in the state where you live and in the state where the business opportunity promoter is based.
• Your county or state consumer protection agency. Check the blue pages of the phone book under county and state government.
• The Better Business Bureau in your area and the area where the promoter is based.
• The FTC. File a complaint online at www.ftc.gov or call toll-free 1-877-FTC-HELP (1-877-382-4357).

It is definitely possible to start or grow your business successfully in any economy. But to make smart choices, especially when scammers are rampant, you need to pay attention to the warning signals and do your homework before opening your wallet too quickly.

=================================================================

WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Advanced Certified QuickBooks ProAdvisor. She specializes in assisting Internet-savvy entrepreneurs get control of their books and maximize profits. Gabrielle also publishes the business-boosting online ezine, Smart Money Choices. Get more information at http://www.BookkeepingDirect.com

Finally a couple breaks that gives a bit of relief specifically for self-employed folks!

The American Recovery and Reinvestment Act (ARRA) has created a few tax breaks for 2009 that are only available this year, some with just a few months to take action and save taxes. Here are a couple you may want to take note of right now because they can have a quick impact on your cash flow.

Estimated Tax Requirements Modified

There are changes to the estimated tax requirements. This is welcome news since the next deadline is Monday, June 15th.

You can defer your estimated tax payments, paying a larger part of your 2009 estimate at the end of the year. The payment requirements have been modified as well.

Now you only need to pay in the lesser of 90% of your 2008 or your 2009 tax bill through estimated payments. The most significant qualification for this new rule is that more than half of your gross income in 2008 had to be from your small business.

Making Work Pay Credit for the Self-Employed

We’ve heard lots about how employees are getting the benefit of this new credit right now, but what about us?

The new credit is equal to 6.2% of your earned income, up to $800 (depending on your filing status). Of course, there is a phaseout of the credit for taxpayers with higher income (AGI over $75,000-$150,000). But if you qualify, you can take the credit now by deducting it from your estimated tax payments.

For directions on how to make the calculations, use Worksheet 2-9 on page 43 of Publication 505

For additional small business tax breaks that may apply to your business, check out the summary of ARRA small business info available directly on the IRS website.

This is a special time-sensitive invitation…

Click Here =>Free Mini-Site Webinar

I’d like to invite you to join me in attending a one-time-only webinar happening THIS coming Wednesday, June 10th.

If you’ve got a website up for your business…or need to get one, this is an event I’m sure you’ll want to attend along with me!

This new, absolutely free, LIVE *webinar* is being offered by my favorite online trainer, Jim Edwards. This special class is called:

“The Ultimate Mini-Site Formula“.

Regardless of where you are in your business, this live webinar contains proven battle-tested blueprints for making your online presence profitable with quick and easy little “mini-websites” you can easily create yourself in just a single afternoon!

(And if you’re just getting ready to put up your website, this is MUST-HAVE information to make sure your site will actually do the selling for you and make money!)

Get the full story right here:

Click Here =>Free Mini-Site Webinar

Using the latest webinar technology, we’ll discover together….

• What exactly is a “mini-site” and why you NEED to have at least one for your business
  placeholder
• Breakthrough strategies that will help you to set up an autopilot mini-site that brings you a never-ending flow of new leads and customers.
  placeholder
• The Exact 4-step process every successful mini-site business MUST follow to profit online
  placeholder
• How to instantly double your mini-site profits just by changing ONE link
  placeholder
• One of the BIGGEST TRAPS you can fall into that guarantees failure and why everyone is trying to get you to fall into it (and more importantly, how to AVOID it!)
  placeholder
• A detailed run-through of Jim’s Million Dollar “Ultimate Online Success Formula” (That’s no hype, either. Jim is literally a multi-millionaire because of this exact mini-site formula!)
  placeholder
• Jim says he’ll even create a REAL mini-site LIVE on the Webinar in just 4 1/2 minutes! (And he’ll also show you a 30-second trick for turning this site into profits, almost instantly!)…
  placeholder
• And much, MUCH more!

Plus not only will you be able to hear Jim sharing this NEW information, but you’ll also get to SEE and WATCH it happening in real time on your computer screen, complete with LIVE examples! (And it doesn’t matter what connection speed you have or even if you have a PC or Mac.)

I’m definitely looking forward to being on this webinar myself — that’s why I thought you’d want to know about it too. It’s going to to be a first-class event!

I truly hope you can join me. You won’t regret it — of that I’m 100% sure.

Gabrielle

P.S. – Considering it’s been almost ONE YEAR since Jim’s last free mini-site training webinar, and since there’s zero tuition cost for this one-time-only event, Jim said this will be completely booked up very quickly.

If you’ve ever wanted to use the Internet and a website to build your business, this is one free event you don’t want to miss! I know I’ll be there! Don’t wait and kick yourself later.

Click Here =>Free Mini-Site Webinar

Are you having fun? They say that time flies when you are. The fact that April 15th has nearly arrived and has caught a lot of people by surprise, must mean there’s a lot of fun going on! That’s the positive spin, anyway.

If you are one who had intended to have your taxes handled by now, but you still haven’t gotten to it, no worries. That’s why the IRS allows you to apply for an automatic 6-month extension to file. They realize that time can get away from us all. That is, at least when it comes to preparing your tax return. But the empathy stops there.

By filing a Form 4868, yes, you will automatically get six more months to FILE your tax return. No questions asked. However, there is no such thing as an extension to pay any taxes owed.

Of course, that’s just more proof of how whacked our tax system is. Isn’t the purpose of preparing a tax return to determine whether or not you have paid enough taxes in based on the amount of your income that’s subject to tax? So if you already knew the answer to that question, why would you need to file an extension in the first place!?! Typical governmental circular reasoning, isn’t it?

But fortunately, there are easy ways to deal with this dilemma.

How to Do It

First, you need to fill out and file the automatic extension form (Form 4868). You can do that for free online using the IRS’s FreeFile system. But if you prefer the old fashioned send-it-in-the-mail method, you can also fill out a PDF version of the form, print it out, and mail it in if you like. Just be sure it is postmarked by April 15th.

However, it is actually safer and more reliable these days to file for extension online. You will receive a confirmation from the IRS usually within 24 hours, giving you proof that your form has been filed successfully. But when you file by paper, you’ve just got to hope that it gets there safely AND that the IRS doesn’t lose it. (The IRS loses paperwork on a regular basis!) The only way you’ll know if they got it or not is if you don’t get any nasty notices from the IRS later asking you for your tax return.

My recommendation: File electronically if at all possible.

What Information Do You Need?

Fortunately, Form 4868 is the shortest and quickest tax form you’ll ever need to use! Heck, once you fill in your name, address and social security number, you’re half-way there!

After that, there are only four other lines you will need to fill in (in most cases). The toughest one is Line 4, where you must estimate your taxes for 2008. Of course, you won’t know that number for sure until you actually complete your tax returns. So we’re talking about your best guess here.

But you’ve got to make it a good guess. If you say you owe less in taxes than you really do, the IRS will smack you with underpayment penalties and interest. Remember, this is an extension to file, not one to pay.

There are, however, a couple fast and dirty ways to estimate smart.  Probably the easiest way is to take a look at last year’s tax return. If you made around the same income in 2008, your tax liability should be roughly the same. And even if you made more, you won’t be penalized for underpaying as long as you pay 100% of your 2007 tax liability. So, to be safe, if you really have no idea what your 2008 taxes will be, enter 100% of your taxes were last year (“total tax” Line 63 of your 2007 Form 1040).

Next you’ll need to fill in how much you’ve already paid in for 2008. Add up all federal estimated tax payments you’ve made, any overpayments applied to 2008 from last year, as well as taxes withheld from your W-2 or 1099 forms. The total should be entered on Form 4868 Line 5.

Finally, subtract the amount you’ve already paid in from the estimated tax liability, and you’re probably done. That is, if you paid in more than the tax. If that’s the case, all you need to do is file this form before midnight on April 15th. You now have until October 15, 2009 to finish up and file your tax return. Isn’t that a relief?

But What If You Didn’t Pay In Enough?

If, you have a balance due, you will need to pay that amount by April 15th. Again, you can do this by paper or electronically. When you file the Form 4868 online, you will be given instructions on how to make your payment. Again, you can do so electronically, use a credit card or by mailing in a check.

What If You Can’t Pay The Full Balance Due?

If you can’t pay the full balance due, simply pay as much as you can right now, and enter that amount you are paying on Line 7 of Form 4868.

The IRS will eventually send you a bill for the rest, including late payment penalties and interest. But don’t sweat it just yet. Remember the balance due is based on an estimate only. The final numbers will be known once you complete your tax return, so it might not be as bad as it may seem now.

Just be sure to send in Form 4868 by April 15th. And if you owe a payment, don’t delay filing the form. That will only cost you more. The smart choice is to file for an automatic extension on time.

Now you can breathe a sigh of relief because you now have six more months to get your taxes in order. That wasn’t so bad now, was it?

~Gabrielle

P.S. If you still need to get your bookkeeping records in shape for completing your taxes, and you use QuickBooks, be sure to check out the time saving tip for quick and easy tax prep at QB QuickTips and check out my latest mini-lesson that will make QuickBooks do a lot of the tax organizing for you this year, and you may never need to go on extension again.