Taxpayers who are unable to file their federal income tax return by the due date can apply for an extension. You can apply for an extension either online or by mail with the IRS (Internal Revenue Service) Form 4868. It is the application for automatic extension of time to file a U.S. Individual Income Tax Return.
You must apply for an extension before the last day for filing taxes. It will provide you with some additional months to prepare your individual income tax return, regardless of the reason behind the extension.
Remember that the extension will only extend the deadline to fill out and submit the paperwork and not extend the time to pay your tax liability. In this blog, we will walk you through everything related to Form 4868: IRS Tax Extension.
Key Takeaways
IRS Form 4868 provides the taxpayer with an extension of an additional six months to file their tax returns.
The due date to file the returns is the 15th of April, and the extension delays it until the 15th of October
When you file a tax extension form, it will not extend the time to pay the tax you owe.
To claim the extension, you must furnish Form 4868 and submit it by the normal tax filing deadline, which is in April.
What is a Tax Extension?
The question "How do I get an extension for my taxes? "arises every tax season. Taxpayers might think about the tax they owe, but neglect the tax return itself. You need to understand what a tax extension is.
A tax extension is a request to get some additional time to file your federal income tax return. However, remember that it will give you more time to finish the paperwork and not extra time to pay your tax bill.
What Can Be the Reasons to Request an Extension?
The extension helps the taxpayers to avoid any penalties that are incurred due to late filing. If you don't file the return on time and miss the April filing deadline, you will incur a late filing penalty. The penalty will be 5% of the due amount for each month or part of the month.
The minimum penalty for return delays longer than 60 days is $510 or the due balance, whichever is smaller. The reasons why taxpayers may require some additional time to file their income tax can be:
They must be living or working out of the country
Missing a Schedule K-1 from a trust in which the taxpayer is a beneficiary
A self-employed individual may require extra time to set up. Also, to fund a simplified employee pension or SEP retirement plan.
Note: Every taxpayer must produce their tax returns separately. Some taxpayers may file their tax returns online for free. They file directly with the IRS using the Direct File Program. This service is provided to those who lived in the following states in 2024:
Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington State, Wisconsin, Wyoming.
Who Can Use Form 4868?
Taxpayers who need additional time to file their federal income tax returns for any reason can use Form 4868. It includes extensions for Form 1040: U.S. individual tax return, Form 1040-SR: U.S. tax return for seniors, Form 1040-NR: U.S. non-resident alien income tax return.
Additionally, Form 1040-PR: self-employment tax return-puerto rico, and Form 1040-SS: U.S. self-employment tax return.
What Information is Required on IRS Form 4868?
When filing IRS Form 4868, the taxpayer will have to provide some important details. It includes their name, address, social security number, and their spouse's social security number (if applicable). If the taxpayer anticipates owing any tax, an estimate of the final tax is needed. Moreover, they are required to pay the balance with the form.
What is the Tax Extension Deadline?
The extension will delay the date for submitting the paperwork. However, your tax payment is still due on the tax deadline, which typically falls on the 15th of April. If the tax extension deadline falls on a weekend or a holiday, the next business day will be considered.
For the 2024 tax year, tax extensions must be submitted by the 15th of April. The extension will delay the deadline to October 15th.
When applying for the extension, you don't need to stress about paying. The sooner you file your return, the earlier you can get your refund.
You must determine what you are liable for paying and pay the due tax amount when filing IRS Form 4868.
How to File an Extension for Taxes Using Form 4868?
Filing IRS Form 4868 provides you with an additional six months to submit your return. It shifts the deadline from the 15th of April to the 15th of October. There are two main ways to file Form 4868, which are as follows:
Option 1: File Electronically (e-file)
You can e-file Form 4868 via IRS Free File or any approved tax software provider. If you use IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a debit/credit card to make the tax payment online, you can mention that the payment is for an extension. In this option, you are not required to file the form separately.
Option 2: By Mail
If you don't like the e-filing option, you can choose filing by mail. You need to download the form from the IRS website and complete it with accurate information. After that, you need to mail it to the address mentioned in the instructions.
Remember, the address may differ based on your location and whether you are including a payment. Ensure to check that your form is postmarked by the original due date of your tax return.
Is There a Penalty for Filing a Federal Tax Extension?
No, there is no penalty for filing a tax extension. However, if you don't pay on time, enough, or fail to file altogether, you may incur some costs:
You might attract a late payment penalty if you don't pay at least 90% of your tax liability. Generally, the penalty is half of 1% of the amount you owe each month, up to a maximum of 25%.
In case you don't pay the complete amount of your tax liability. Then, the IRS will impose interest on the unpaid tax balance until you handle the full amount.
If you don't file either your return or IRS Form 4868 by the deadline for the given tax year. In such a case, you will incur a penalty for late filing. The penalty is 5% of the amount you owe every month, up to a maximum of 25%.
Once you file the extension, you have time till October 15 to collect documents and finish your paperwork. You must mention the amount you have already paid in the payments section of your Form 1040.
Does Form 4868 Give Filers Extra Time to Pay Taxes?
No, the taxpayer's payment is still due on the original deadline, which is usually the 15th of April. When you submit the form to the IRS, ensure to send in a payment of the estimated due balance. If you pay your estimated due tax online or by phone, and mention that your payment is for an extension. Then, the IRS will permit you to skip filing out IRS Form 4868 entirely. It includes using Direct Pay, EFTPS, or a credit or debit card.
Does a Taxpayer Living Abroad Need to File an Extension for Taxes?
A U.S. citizen or resident who is staying outside and whose place of work is outside of the U.S. or Puerto Rico is granted an automatic extension of two months. Additionally, those working in the military or naval service on duty outside the U.S. or Puerto Rico also get an extension.
To Conclude
IRS Form 4868 can be accessed by any U.S. taxpayer who needs extra time to file their federal tax return. You need to complete it and send it to the IRS to receive a six-month additional extension. This will help shift the due date from April to October. The deadline for paperwork will be extended, but the owed taxes will still be due by the April filing date.
Applying for an extension can get frustrating if you don't follow the right procedures. Hence, you should take advice from the professionals of Savetaxs. We are a leading tax firm, helping U.S. citizens with tax services for several years now. The quality of our service can be determined by our satisfied client base. Connect with us today and solve your tax-related issues with confidence.
Note: This guide is for informational purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult with either a Chartered Accountant (CA) or a professional Company Secretary (CS) from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.
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No, it doesn't cost to file an extension on taxes as it is free. However, you must still pay any tax that you are liable to pay by the due date to avoid paying any hefty penalties and interest.
Taxpayers are required to provide several information on Form 4868, including name, address, social security number, and their spouse's social security number (if applicable).
No, Form 4868 does not give filers more time to pay taxes, and the taxpayer's payment will be due on the original due date, which is usually the 15th of April.
A tax extension will generally give you an extra six months to file your return. For most taxpayers, the deadline has shifted from the 15th of April to the 15th of October.
If you are staying or travelling outside the United States on the tax day, you may automatically get an extension of two months to file and pay your tax returns. You also have the option to request the standard six-month extension if you need some extra time.
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