Did tax season sneak up on you? Were you delayed in receiving documents through the mail? We can relate. The pages on the calendar seem to turn faster and faster.
The deadline for filing federal income taxes is Monday, April 18, 2022. However, if you’re still gathering your documentation, you may need to file an extension using IRS Form 4868. This gives you six additional months – until Monday, October 17, 2022 – to file your tax return.
Seem too good to be true? It might be. Here is important information to understand when considering filing an extension.
An extension doesn’t mean you don’t have to pay until October. Form 4868 gives you the opportunity to extend your filing deadline – but not your payment. An approximated tax payment will need paid when you file your extension on or before Monday, April 18. Previous returns and W-2 withholdings can be used to determine the approximated payment.
Anything you owe that hasn’t been paid by the deadline can be subject to interest and a late-payment penalty fee, even if you’ve filed an extension.
You can still save money by filing an extension. Requesting an extension on or before April 18 will help you avoid a late-filing penalty fee.
While filing an extension is a great way to buy yourself some time, it is important to complete your final return by the October deadline. The failure-to-file penalty is usually 5 percent of the tax you owe for each month your return is late, up to 25 percent.
What if my amount owed is greater than I expected? Should I file an extension? Remember that filing an extension only gives you more time to prepare your return – not make your payments. If you’re not able to pay your full tax amount by April 18, the Internal Revenue Service has options. Learn more about payment plans here.
We’re here to help you file an extension and approximate your extension payment. Contact us to learn more.