As the April 15th (or 17th in MA and ME) tax deadline approaches, many individuals find themselves scrambling to gather all the necessary documents and information to file their tax returns on time. However, sometimes life happens, and unexpected circumstances can make it challenging to meet the deadline. In such cases, filing a tax extension can be a helpful solution.
Too Long; Didn’t Read
- A tax return extension pushes the tax return filing date by 6 months (to October 15th). This does not extend the deadline for paying taxes. You are required to estimate and pay any taxes owed by Tax Day.
- A tax extension is great for those who are still waiting on W-2s, 1099s, or other important tax forms from an employer, bank, or other financial institution.
- File an extension by filling out Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return).
- Contact us and we’ll file your extension for you!
What is a Tax Extension?
A tax return extension, also known as a tax extension, is an additional period of time granted by the Internal Revenue Service (IRS) to file your tax return. The standard tax filing deadline is Tax Day, but with a tax extension, you can get an additional six months to file your return, pushing the deadline to October 15th.
It’s important to note that a tax extension does not extend the deadline for paying your taxes. You are still required to estimate and pay any taxes owed by Tax Day to avoid penalties and interest charges.
Do I Need to File a Tax Extension?
There are several reasons why you may need to file a tax extension. Here are some common scenarios:
Incomplete Information
If you’re still gathering all the necessary documents and information needed to file your tax return, an extension can provide you with additional time. This might include waiting for W-2s, 1099s, or other important tax forms from your employer, bank, or other financial institutions.
Complex Tax Situation
If you have a complex tax situation, such as owning a business, receiving income from multiple sources, or having investments in various assets, a tax extension can give you the additional time needed to ensure all income, deductions, and credits are properly reported.
Life Events
Unexpected life events, such as a major illness, family emergency, or recent move, can disrupt your normal tax preparation routine. In such cases, a tax extension can provide you with the necessary breathing room to get your tax affairs in order.
How to File a Tax Extension
If you want to file an extension yourself, follow these steps:
1. Estimate your tax liability: Before filing the extension, you’ll need to estimate the amount of taxes you owe for the current year. This will help you determine the amount you should pay by the April 15th deadline to avoid penalties and interest charges.
2. Submit Form 4868: The form you’ll need to file is called Form 4868, “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.” This form can be filed electronically or by mail.
3. Pay any taxes owed: As mentioned earlier, filing a tax extension does not extend the deadline for paying your taxes. You should pay any estimated taxes owed by the April 15th deadline to avoid penalties and interest.
4. File your tax return: Once you have all the necessary information and documents, you can file your tax return by the extended deadline of October 15th.
Benefits of Filing a Tax Extension
There are several benefits to filing a tax extension:
Avoid Late-Filing Penalties
If you are unable to file your tax return by Tax Day, a tax extension can help you avoid late-filing penalties, which can be up to 25% of the taxes owed.
Reduce Stress
The additional time an extension provides can help alleviate the stress and pressure of trying to meet the original deadline. Especially if you have a complex tax situation or have experienced a life event that disrupted your tax preparation.
Ensure Accuracy
With the extra time, you can take the necessary steps to ensure your tax return is accurate and complete.
Let JBS Corp Handle Your Tax Extension
If filing a tax extension seems overwhelming, consider letting the professionals at JBS Corp handle it for you. Our team of experienced tax experts ensure that your tax extension is filed correctly and on time. By entrusting your tax extension with us, you can have peace of mind knowing your tax affairs are in capable hands.
Don’t let the tax deadline stress you out. If you need to file a tax extension, fill out the contact form on our website and we’ll take care of it!
