With Tax Day coming up soon, it’s time to get your finances in order. But what if you aren’t going to be able to get your taxes done by April 18th? You can file for a 6-month extension through the IRS. Whether you’re busy with a family emergency, work, or something else, filing for an extension can give you more time to prepare your tax return.
Here are the steps to file a tax extension:
- Fill out the form: filing for an extension is a pretty simple and quick process, so if you’re behind on your return, don’t hesitate to file for an extension. To fill out Form 4868, you will need to enter your identifying information as well as an estimate of total tax liability for the year, total payments you’ve already made, the balance due, and the amount you are paying.
- Submit the form: you can do this electronically via IRS e-file or by mail before the April 18th deadline. Tax software like TurboTax can also help you do this. If submitting by mail, make sure to send it to the correct IRS processing center for your state.
- Estimated taxes: Pay any estimated taxes due by the April 18th deadline to avoid penalties and interest.
Remember, while an extension gives you more time to file your tax return, it does not give you more time to pay any taxes owed. Make sure to pay any estimated taxes due by the April 18th, 2023 deadline to avoid additional fees. Most requests will be granted automatically, but the IRS will contact you directly if yours is denied.
Filing a state tax extension
Tax laws and regulations vary by state. You will need to check with your state’s tax agency to see if they offer a state tax extension. If they do, the process is similar to filing for a federal extension, but you will likely need to fill out a state-specific form. Make sure to check the deadline for filing your state tax return and any estimated taxes due to avoid penalties and interest.
Advantages of filing a tax extension
- Avoid late fees: Filing for a tax extension can also help you avoid late filing penalties which can add up to 25% of the tax due.
- Ensure accuracy: Having more time will be helpful for avoiding mistakes and inaccuracies.
- Reduce stress: Taxes are already stressful enough, without rushing to prepare your return. Filing for an extension can reduce the stress and anxiety associated with taxes.
The bottom line
Filing for a tax extension with the IRS doesn’t have to be a complicated process. You just need to fill in Form 4868 and submit it either electronically or by mail. Filing for an extension can help you avoid late fees, reduce stress, and ensure accuracy.