- August 25, 2021
- Posted by: blogtester
- Category: Uncategorized
The May 17 tax deadline has ended. Don’t worry if you haven’t filed yet. You must have no time yet. So, you might want to think about getting a tax extension.
The IRS has nothing to do with your reason for the failure of tax payment. Perhaps you misplaced your tax paperwork, had a family emergency, or maybe procrastinated. Regardless of the problem, you can still seek to go for a tax extension until October 15 by filling the IRS Form 4868. This might offer you extra time to prepare your return and ensure you’re getting all the tax benefits you’re entitled to.
Although it may appear appealing, there are a few factors to take into account. When you owe taxes, filing an extension offers you additional time to file, not any additional time to pay. That implies your payment is still due for filing your tax return.
How can you file tax extension?
To file the tax extension, prepare IRS Form 4868 and submit it digitally by the May 17 deadline to prevent the IRS from levying a late-filing penalty. You may also do it for free by utilizing any of the big tax preparation firms’ Free File software. These can frequently assist you in estimating your tax liability so that you can make a payment.
Another alternative is to print the form and mail it before the IRS address for your state.
Choose IRS Free File if you don’t want to utilize tax software or aren’t sure which software to use. The IRS has partnered with the Free File Alliance to give free, name-brand tax-preparation software to persons with an adjusted gross income lower than $72,000. Anyone — including those with income over the income threshold — may go over to the site to file the extension online.
What is the duration of a tax extension?
You receive a tax extension to file your tax return until October 15, 2021.
If you are unable to file your return by the due date of May 17, you must calculate your tax due and pay as much of it as soon as possible.
Even if you receive an extension, any money you owe beyond the deadline is entitled to interest and a late-payment penalty.
If you pay at least 90% of your actual tax due by the May 17 deadline and pay the balance with your returns, you might be able to avoid the late payment penalty.
Every state has its own set of rules when it comes to tax extensions. While some jurisdictions (such as Wisconsin, California, and Alabama) provide automatic six-month extensions to every taxpayer, many require you to fill out a particular form on or before your return’s original deadline. Since certain states do not have a state income tax, you cannot submit a return or request a tax extension in such states.
You can produce the correct, state-specific form using commercial tax preparation software. You can also get the form on the website of your state’s tax authority. Like the federal extension, the state extension gives you extra time for filing your return, not to pay your taxes. Calculate what you could owe and make a payment if you can to prevent fines and interest.
Extending the deadline for foreign taxpayers and military personnel
Some people may not need to bother about filing for tax extensions at all.
- Suppose you’re a U.S. resident or citizen who worked and lived outside of the nation on the filing deadline. In that case, you may be eligible for an automatic two-month extension to submit your returns and pay any amounts owed without requesting a tax extension.
- People who have been affected by specific natural catastrophes may be granted more time. (Check this list)
- Depending on where they are or what they’re doing, certain military personnel receive automatic extra time.
File By The October Deadline
Only half of the job gets done when you request an extension and make an anticipated payment. Your final return must yet be filed. The fines might go higher if you don’t file by the October 15 extension date.
The Bottom Line
Having additional time to collect, evaluate, prepare, and file your tax return can reduce stress and allow you to be more comprehensive. Requesting an extension is straightforward, and you don’t have to clarify why you need the IRS. The IRS will only notify you on refusal of your request, as you can have most petitions automatically approved. If you are still unsure about the tax extension process or how to file the extension, Platinum Tax Defenders can offer professional help.