Taxes 2023-2024: How To File a Tax Extension

Caitlyn Moorhead
valentinrussanov / Getty Images
valentinrussanov / Getty Images

Life can get busy, and sometimes gathering all your tax information takes longer than you thought. Now the due date of April 15, 2024, is almost here, and filing an extension will give you until Oct. 15, 2024, which could prevent you from rushing through your tax situation and making mistakes. Your 2023 tax returns depend on you submitting accurate information and avoiding late payment penalties for filing past-due.

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3 Options To File a Tax Extension

If you don’t request an extension, late filing penalties add up to 5% of the amount due with your return for each month that you’re late. These penalties will increase over time, up to a maximum of 25% of the amount due. According to the IRS, the late filing penalty is 10 times as costly as the penalty for not paying.

Here are a few ways to request an extension to file your taxes from the IRS:

  1. E-file an extension form

  2. Get an extension when making a tax payment

  3. Automatic extension

1. E-File an Extension Form

Individual filers can use the IRS Free File tax software to electronically request a tax-filing extension on IRS.gov. You can request an extension on Form 4868, but you must also estimate your tax liability on this form and pay any amount due.

Even if you can’t pay your total tax bill, the IRS recommends paying as much as possible to minimize any penalties and interest charges. You can also set up a payment plan with the IRS to pay off your balance over time.

2. Get an Extension When Making a Tax Payment

You can also get an extension while making a tax payment by using IRS Direct Pay, the Electronic Federal Tax Payment System or by paying with a credit or debit card or digital wallet. You don’t need to file Form 4868 as the IRS will automatically give you an extension when you make a tax payment.

3. Automatic Extension

Eligible taxpayers can automatically get an extension to file their taxes. These include:

  • U.S. citizens and resident aliens working outside of the U.S. and Puerto Rico get a two-month extension to file their tax returns.

  • Military service members on duty outside of the U.S. and Puerto Rico receive an automatic two-month extension. Those in combat zones have 180 days after they leave the combat zone to file returns and pay taxes due.

  • If the president makes a disaster area declaration, the IRS can postpone deadlines for certain residents and businesses in the affected area.

Tips To Help File a Tax Extension Hassle-Free

Keep in mind that an extension is for filing, not for paying: A tax extension gives you more time to file your taxes, but it doesn’t extend the deadline for paying any taxes you owe and does not directly apply to your tax refund, if applicable. If you estimate owing taxes, try to pay as much as possible with your extension request to minimize penalties and interest.

Failing to file your taxes or request an extension by the deadline can result in penalties and interest on any unpaid taxes. To avoid this hassle, here are a few takeaways to consider when organizing your taxes.

  • Know your deadline: The tax filing deadline usually falls on April 15th. However, this date can vary, so make sure you check the current year’s deadline.

  • Use IRS Form 4868: To file for an extension, you’ll need to fill out IRS Form 4868. You can find this form on the IRS website. This form asks for basic information, such as your name, address, Social Security number and estimated tax liability.

  • Estimate your taxes: Along with Form 4868, you’ll need to estimate how much tax you owe. This helps the IRS process your extension request. If you end up paying too little, you may owe penalties and interest later. It’s best to overestimate if you’re unsure.

  • Submit electronically or by mail: You can submit Form 4868 electronically through tax preparation software or by mailing it to the IRS. If you choose to mail it, make sure to send it before the deadline to avoid late filing penalties.

  • Receive confirmation: After submitting your extension request, you should receive confirmation from the IRS. This confirmation may come in the form of a confirmation number if filed electronically or a stamped copy of Form 4868 if mailed.

  • Complete your taxes: With the extension granted, you now have extra time to gather all your tax documents, fill out your tax forms accurately, and submit them by the extended deadline.

Final Take To GO

Be sure to keep a copy of your filed extension request and any confirmation you receive from the IRS for your records. This documentation can be helpful if there are any issues or questions later on and prove your due diligence for this tax season.

The bottom line is that filing a tax extension is a straightforward process that can give you peace of mind and ensure you submit accurate tax information without having to pay more than you owe through penalties and interest. Remember to file your extension on time by April 15, to give yourself until Oct. 15 to get your taxes in order.

Josephine Nesbit contributed to the reporting for this article.

This article originally appeared on GOBankingRates.com: Taxes 2023-2024: How To File a Tax Extension

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