Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
If you need to file for a tax extension, here's how you can do it using the tax software you normally use. Remember, you can get a six-month extension on your tax return, but there's a catch!
The The official deadline for tax returns is April 15, 2024. But if you do your taxes on time, you may find yourself completely stressed and overwhelmed.
Whether you still need to get your finances in order or your plan to file on time has been derailed by unforeseen circumstances, you can request a six-month extension from the IRS.
How to get a tax extension for the 2023 tax year (which you file in 2024).
Do you actually need to file for a tax extension?
First, do you even need to file for a tax extension? Perhaps…
If you receive a tax refund (make sure you are sure), you don't actually need to file for an official extension. You can file your taxes at any time up to three years later to claim your tax refund. However, if you miss the three-year window, you're out of luck.
Secondly, some places may get an automatic extension due to various issues. In 2024, there are some areas that will automatically receive an extension. You can view the IRS list here. These areas include:
- Certain areas in Maine have until July 15th
- Certain areas in Rhode Island have until July 15th
- Certain areas in Alaska still have until July 15th
- Certain areas in Southern California still have until June 17th
- Certain areas in Michigan have until June 17th
If neither of these apply to you (i.e. you owe taxes), you will need to apply for a tax extension.
You must complete a Federal Extension Form 4868
To move your tax return due date to October 15, 2024, you must fill out IRS Form 4868. The form must be completed no later than April 15, 2024, the tax deadline. Remember that You still have to pay your debt to the IRS by this April deadline. An extension does not mean that you can also delay payment.
If you file for a tax extension, you will be given an additional six months to file your federal taxes. This is an extension to filing your tax return. no extension of tax payment.
You can fill out a paper form and mail it to the appropriate IRS location (which varies by state), or email it using IRS forms that can be completed online or tax software such as TurboTax, FreeTaxUSA, TaxAct, TaxSlayer, or H&R Block .
The shape pictured above is deceptively complex. With only nine fields, filling it out should only take a few minutes. First, enter your name, address and social security number.
Then you get to box 4, where you need to estimate your total tax liability for 2023. Most people who know their tax burden don't need to file an extension.
Estimating your tax burden is the most difficult part of requesting a deferment. If you're looking for guidance on estimating your tax burden, you won't find it with the IRS, which tells filers to “accurately estimate your tax burden based on the information available to you.”
When estimating your tax burden, you want to be as accurate as possible. Certain tax software companies that allow you to file an extension via email have built-in calculators to help you estimate your taxes.
Tax tip: The TurboTax Calculator is a particularly helpful tool that is suitable for most filers seeking an extension.
If you're really having trouble estimating your income, consider spending a few hours using the best tax software to get a more thorough estimate of your business or rental income.
The remaining fields include the total number of federal tax payments for 2023, the balance due (if you owe more taxes), and the amount you will pay at the time of filing an extension.
File a tax extension for your state
If you live in a state that requires a state income tax, you may need to file an extension in your state. The process for requesting an extension varies by state. Some states automatically grant a six to seven month extension if the IRS grants one to you.
Other states require you to apply for an extension using their process. If you use tax software to request a federal extension, you will be presented with the option to also request a state extension.
If you don't use tax software, you can also use an online search to find out the process for filing an extension in your state.
You still have until April 15 to pay your taxes
The extension of time is not an extension of time to pay your taxes. You must pay unpaid taxes when you request an extension. If you cannot pay the amount in full, pay as much as possible. Filing a tax extension does not excuse you from paying your taxes on time and in full.
The interest rates for delinquent taxes for 2023 are between 5% and 8%. If you have the money to pay off back taxes, take care of the debt immediately. This way you can avoid paying even more interest over time.
If you have significantly underpaid your taxes (less than 90% of your actual tax liability), you may owe a tax penalty that can be between 5% and 25% of your unpaid tax liability.
Make sure you pay your taxes before April 15, even if you can't complete your tax return by the original tax deadline.
Don't expect a refund until you submit the application
If you overpaid your 2023 taxes, you will receive a refund. However, this refund isn't just because you filed Form 4868.
You will not receive a refund check until you complete your real tax return. You can expect to earn a small interest on the cash the IRS holds for you, but be sure to claim your tax refund as soon as you get your money back from the IRS.
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
