Often when we lead a busy life, it’s difficult to get back to filing taxes and other highly important yet less prioritized matters. Thus, there is always a provision to extend the tax filing period, and each time you think you cannot file your taxes; you must go back and request a tax extension.
Tax returns are phases where people need to sit through that particular time duration to not only understand their taxes but also file them forward. Not often, but you might have that much time to yourself.
What is Tax Extension?
For a US tax return, you can request an additional six months from when you can go ahead and file your taxes. Usually, you can make such an extension request in three different ways to the US government.
A tax extension is a facility that you can enjoy if there is a need for it. Most people who are having an unprecedented time during the year can have a tax extension.
Most people who file for an extension either do not have the time to file it or have a personal situation to handle. Some people also have difficulty filing or gathering entire documents, and if that is your case, then you can request more time to get the maximum benefit from your tax returns.
Sometimes, though only rarely, your tax return extensions might be declined. Reasons for this decline might be something small or insignificant. It could be a misspelling, or a misalignment with the IRS records.
To be able to file late does not mean you will be authorized to pay it late. Only you can request a time extension to avoid getting penalized for not filing on time.
These are the ways in which you can file your tax extension.
- You can request an extension for IRS Direct Pay, debit or credit card use, and EFTPS (the electronic federal tax payment system).
- Try by filing an e-file with Form 4868 (Application for Automatic Extension of Time to File a U.S. Individual Income Tax Return).
- Instead of doing an e-filing, you can also go for a paper filing for Form 4868.
To file your e-form, you will need your previous year’s tax returns.
During your previous year, the gross adjusted income must be entered by the applicant purely to run the verification process.
After filing, you will receive an electronic acknowledgement, which you must keep with yourself for further reference purposes.
Those who stay outside the country, which means outside the United States, can get two more months of extension, usually up to June 15.
- Those who work outside the US or Puerto Rico.
- Individuals working in the military or navy who are located outside the US and Puerto Rico.
How to request a tax extension?
To file a tax extension online, you will need to look into their online form filling process where Form 4868 is to be filled. Additionally, you can also fill out the paper form, Form 4868.
In the form, you will need to enter the following fields.
- The applicant’s name must go in
- You must enter your address in the form.
- Enter your social security number in the given space.
- Add your tax liability amount in the given segment.
- Also find out how much you paid through federal taxes.
Those who owe a tax amount will require filling out the tax amount, and people who don’t have a tax to pay will not need to file a tax extension.
- Total tax responsibility has to be filled through 2022.
- Estimated total payments made in 2022 need to be added.
- The balance amount due is what you need to put.
- Enter next the amount you are due for payment.
- If you are out of the country, enter the details here.
- Form 1040-NR Filers must enter the required information in this section.
But you will need to make the payment, and with this permission, you can only file it later.
Who is eligible to file for a tax extension?
You can qualify for a tax exemption if you fulfil one of the following criteria.
- If you are right now not organized to file the tax returns.
- You have unanticipated events coming up.
- Tax planning purposes are currently not working the right way.
- If your tax documents are not yet complete.
- Some uneventful happenings happened in your life.
- Having late payment penalties can also be a reason for taxes.
- Roth and traditional IRAs are how you can pay your taxes, and in due time before filing tax returns, you can convert your Roth IRA to a traditional IRA anytime.
- Late payment penalties can also be a reason why many people go ahead and file for a tax extension.
What documents are required?
You will need the following tax extension related documents.
- Submit IRS Form 4868.
- Provide your SSN (Social Security Number).
- Address details must be submitted for them to verify.
You can get the benefit of the time and review your return over a longer period to get the maximum return and benefits out of it. There will be almost 25% more taxes you will need to pay if you do not request an extension.
FAQs (Frequently Asked Questions)
How long are tax extensions good for?
Once you have filed the tax extension, you will automatically have six months to file your tax returns. It means you will need to submit your tax return extension form before April 15.
How much does a tax extension cost?
You don’t have to pay anything to file a tax extension, as it is a free government opportunity for those who need more time to file their tax returns. Tax extension has nothing to do with any other department or a procedure outside the tax return system. Those who wish to file a tax extension can do so, and there is no need for any payments as everything is part of their tax return scheme. The officers will review the reason and the amount you have filled in for taxes, as well as your personal details, before giving you the extension.
How many tax extensions can you file?
You can file a tax extension which can help you extend it for six months and you can also file another one if six months is not enough. But more than that you cannot file a tax extension for yourself which means you cannot file it for multiple times.
What happens if you didn't file a tax extension?
If you haven’t filed a tax extension and have not yet filed your taxes, you will have to pay an additional 25% of the amount.
How long does tax extension take?
A tax extension will take almost no time as if you file online, you will get the tax return mail for successful submission in the same day. Alternatively, if you file via mail, you will not receive any email confirmation also. Once the approval is done, you will not be intimated however, if it is rejected, you will get an intimation regarding the same.
Here is what you must know if you wish to file for a tax extension. Most of the information provided here is just a quick read away and all you have to do is go through it to be sure you know how to fill your tax extension form.