As the deadline for filing your tax return looms, you may start to feel a sense of panic or anxiety. Perhaps you’ve been too busy or overwhelmed with other tasks to prioritize tax prep, or maybe you’re unsure where to begin.
Whatever the case may be, it’s important to know that you have options when it comes to filing your taxes on time. One of these options is filing a tax extension, which will give you more time to prepare your return without facing any late filing penalties.
This blog will walk you through the steps to file a tax extension, what you need to know, and how it could benefit you.
What is a tax extension?
First, let’s tackle the most important question of all – what exactly is a tax extension? Simply put, a tax extension gives you more time to file your return. This year, the deadline is April 18th, but with an extension, you can push the deadline to October. However, it’s important to note that an extension does not give you more time to pay any taxes owed. If you owe the IRS money, you must pay by April 18th to avoid steep penalties or interest rates.
If you’ve decided that a tax extension is the right decision for you, the next step is to gather all the necessary information and forms. To file an extension, you must fill out Form 4868 and submit it to the IRS. This form can be filed electronically or through the mail, and it typically takes less than 15 minutes to complete.
If you know you’ll be getting a refund, you won’t need to worry about paying when filing an extension for taxes. The earlier you file your return, the earlier you’ll receive your refund.
If you think you’ll owe money, pay the amount due when you file Form 4868.
Estimate your tax liability here.
What if you owe money and can’t pay?
If you owe money to the IRS and cannot pay the total amount by the April 18th deadline, you can apply for a short-term payment plan. However, payment plans are subject to interest charges, so if you can make a partial payment when you file your extension, you should. Doing so may limit penalties and interest charges.
Short-Term Payment Plans (up to 180 days)
States impacted by storms will get extensions:
Due to recent storms throughout the US, the IRS has issued Federal Tax Extensions for areas affected by severe weather.
If you live in California, Alabama, or Georgia, you have six more months to file your 2022 returns, extending the deadline to October 2023.
In Mississippi and Arkansas, your deadline was July 31st, 2023.
For New Yorkers in designated areas affected by storms, you had until May 15, 2023.
If you need to file an extension, do so as soon as possible so that it can be received before the April 18th deadline. If you wait until the last minute to file your tax return, you might waste valuable time figuring out your best tax strategy.
Stressing about filing your taxes? Consider enlisting the help of a professional – Louis Mamo & Company’s tax experts make it easy! With our team on your side, you’ll have peace of mind knowing that all the paperwork is taken care of and filed correctly.
At Louis Mamo & Company, we offer expert help with last-minute filing—so there’s less stress and more savings. Contact us today to speak to one of our team members!