How to File an Extension for tax Deadline Step by Step
Life is full of surprises, and sometimes you might find yourself unable to file your taxes on time. If you’re unable to meet the April tax deadline, filing for an extension can give you additional time to submit your return.
The IRS is available to help address tax issues, but it's crucial to reach out as soon as you anticipate a problem.
What is a tax extension, and when should it be submitted? Here's a helpful guide to prepare you before the deadline.
Table of Contents
Should You File a Tax Extension?
How Much Extra Time Does an Extension Give You?
Who Qualifies for a Tax Extension?
What Form is Used to Request an Extension?
Steps for Filing a Tax Extension
What’s the Difference Between a Filing and Payment Extension?
Should You File a Tax Extension?
While the tax filing deadline is typically April 15, if you miss it, you could be subject to penalties. Filing an extension can help you avoid extra fees related to late filing.
However, an extension only gives you more time to file, not to pay your taxes. Even if you're unable to make a full payment, filing for an extension is beneficial. The IRS imposes separate penalties for failure to pay and failure to file, and it’s better to minimize those costs where possible.
Is There a Fee for Filing a Tax Extension?
Filing for a tax extension is free. To apply, you’ll need to complete IRS Form 4868, which you can either mail to the IRS or submit electronically, for instance, through Osheens Taxes.
Although there’s no fee to file for an extension, failing to do so can lead to a "Failure-to-File" penalty, which amounts to 5% per month of the unpaid tax, up to 25%. On the other hand, the "Failure-to-Pay" penalty starts at 0.5% per month, so while it’s best to pay what you can by the deadline, filing for an extension will save you from even higher penalties.
How Much Extra Time Does an Extension Provide?
Taxpayers need to keep track of several important deadlines. April 15 is the primary date to remember for filing your return or requesting an extension.
By filing Form 4868 on or before April 15, you can automatically extend your filing deadline to October 15. While the extension helps you avoid penalties for late filing, paying what you owe as soon as possible will minimize any additional fees for late payments.
If you're expecting a refund, filing late doesn’t incur penalties, but submitting an extension still protects your rights and ensures the IRS is aware that your return will be forthcoming.
Who Qualifies for a Tax Extension?
Virtually anyone can file for a tax extension, regardless of their income or filing status. All you need to do is complete Form 4868 by the April deadline, and you’ll receive a six-month extension automatically.
Although rare, a tax extension could be rejected if some of your information is incorrect, so be sure to double-check your details before submitting.
What Form is Used to Request an Extension?
If you can’t meet the tax deadline, you'll need to complete IRS Form 4868: Application for Automatic Extension of Time to File U.S. Individual Tax Return.
This form is straightforward, requiring basic information like:
Your name
Address
Social Security number (and your spouse’s if applicable)
You’ll also need to provide an estimate of your total tax liability, subtract any payments you’ve already made, and calculate what you still owe.
Form 4868 also includes options for U.S. citizens living abroad and for non-resident filers.
Steps for Filing a Tax Extension
Filing an extension is simple. You can either mail the completed Form 4868 or file it electronically.
Filing Online
You can make the process even easier by filing online. Osheens Taxes offers a free and quick way to request an extension. After logging in to your account, you’ll provide some basic information and submit your request.
Once the IRS approves your extension, you’ll have until October 15 to file your tax return. Osheens Taxes will notify you when your extension has been accepted, and you can also use the platform to make any partial tax payments.
What’s the Difference Between a Filing and Payment Extension?
An important distinction to make is that while filing an extension grants you more time to submit your return, it doesn’t give you more time to pay your taxes. Even with an extension, you could still face penalties if your taxes aren’t paid by the original due date.
To avoid the failure-to-pay penalty, try to pay as much as you can by April 15.
Conclusion
If you’re struggling to meet the tax filing deadline, requesting an extension can help you avoid hefty penalties. Although it doesn’t give you extra time to pay, it allows you to complete your return without facing late-filing penalties. If you owe taxes, paying as much as you can by the deadline will help reduce any additional charges.
If you’re unsure about how to navigate these rules, don’t worry—Osheens Taxes can guide you through the process to ensure you maximize your return and minimize any penalties.
