Tax season rolls around every year, but for many it never feels any easier. The stress associated with this time of year (particularly if you’re not anticipating a huge return) can really mess up your groove. Whether you’re managing multiple income streams, juggling business responsibilities or just trying to keep up with life, things can get messy fast. Getting your taxes filed on time can feel overwhelming and like a chore. And let’s face it, when deadlines sneak up and your plate is already full, taxes typically take a back seat.
No matter how busy you are, it’s worth noting that missing the filing deadline can lead to some avoidable penalties and much more unnecessary stress. If you’re not ready to file by the due date, requesting a tax extension so time is on your side again might be the next best choice. For those wondering how to take advantage of the option, there are a few things to remember. Firstly, filing an extension is a normal thing (and it is an IRS-approved solution). Secondly, the process is simpler than people think. To make things even easier, we’ve put together a guide on what taxpayers need to know.
Tax Season Is Upon Us, But Not Everyone Is Ready For It
The deadline to file this year was Apr. 15. If you were unable to meet that, there’s no time like the present to consider other options. If you opt to file for an extension, it’s important that you find the right resources and paperwork first. To be more specific, taxpayers will need Form 4868 to file a tax extension, allowing them to file later in the year. According to NerdWallet, this solution gives Americans six extra months to get their documents and records together, with a new deadline of Oct. 15. But contrary to popular belief, filing for a tax extension does not mean you have an extension to actually pay your taxes. So, it is customary to pay the IRS the taxes you think you owe (the estimated number). The extension solely applies to the document filing. By doing this, taxpayers can avoid penalties that may apply to people who do not file.
Filing for a tax extension is not the way to go for everyone, especially those who don’t have the funds to pay what they owe upfront. Still, there are alternatives to filing for an extension. Instead, taxpayers would need to apply for either a short-term or long-term payment plan. To apply for one of these payment agreements, taxpayers will need Form 9465 (the installment agreement request form) from the IRS’ website.
General Advice For Filing
To file an extension by mail, taxpayers will need to download Form 4868 from the IRS website. After that, you can estimate the amount you owe and fill out part II of the form under “individual income tax.” Then, you send out the form to the relevant IRS address, which is also available on their website.
Another option is to file an extension online, which is far more convenient, particularly for those considering their options past the tax filing deadline. It is also important to note that this tax filing extension applies to federal taxes. So, if an extension is needed for state taxes as well, taxpayers will need to file for an extension more than once. Filing for a tax extension helps people avoid the failure-to-file penalty, according to the IRS. This amounts to 5% of the total tax due, which can pack a punch.
The IRS Has Given An Extension To Some People Automatically
CBS News reports that the IRS has automatically extended the deadline for residents of 13 states across the United States. These extensions have occurred due to natural disasters around the country, and apply to both filing your taxes and paying them. However, not every state has the same rules or adjusted deadlines. For example, those living in South Carolina, Georgia, Florida and North Carolina now have until May 1. For taxpayers who live in Los Angeles (which recently experienced devastating conditions), there is a longer extension, giving locals until Oct. 15 to file. The last of the tax extensions apply to people living in Tennessee, Kentucky and Arkansas (as well as some West Virginia residents), with a new deadline of Nov. 3.
Frequently Asked Questions
Can you use TurboTax to file an extension?
Yes, taxpayers can easily file for an extension through TurboTax. Otherwise, they can complete and file the IRS 4868 Form.
What is the last day to file an extension?
Technically, you were supposed to file your extension by Apr. 15, 2025 to avoid penalties.
