What Form Do You File to Extend Your IRS Tax Return?

What Form Do You File to Extend Your IRS Tax Return?

Filing taxes can be super stressful and overwhelming, I feel you. Especially if you’re missing paperwork or don’t have all the info you need. But don’t panic! You can get more time to file your taxes by requesting an extension from the IRS. This bumps your deadline from April 18 to October 16.

An extension gives you an extra 6 months to get your stuff together. It’s free and pretty easy to do online. Just be aware that even with an extension, you still gotta pay any taxes you owe by April 18 to avoid penalties and interest.

Why File an Extension?

There’s a few good reasons to extend your filing deadline:

• You’re missing a W-2 or 1099 form
• You need more time to prepare your return
• You’re waiting on K-1s if you own a business or investment property
• You had a major life event like a new baby or death in the family
• You’re a procrastinator (no judgment, taxes are the worst)

An extension buys you more time to file accurately and avoid mistakes. Rushing to meet the April deadline can backfire if you end up having to amend your return later.

How to File for an Extension

There’s a couple ways to get a tax extension with the IRS:

1. File Form 4868
   This is the “Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.” Fancy name, simple form. You can do this online through the IRS Free File site. It works for anyone regardless of income. Just check the box for Form 4868 and submit electronically.
2. Pay your estimated tax due
   You can get an automatic 6-month extension by paying part or all of your estimated tax due. Choose “extension” as the reason for payment. But be careful with this method – filing Form 4868 is safer to avoid issues later.

Both options give you until October 16 to file your federal return. It’s that easy! Some states also require a separate extension for state taxes, so don’t forget to check your state’s rules.

What if I Owe Taxes?

Here’s the catch – an extension gives you more time to file your taxes, but not more time to pay your taxes. Doh!

If you end up owing Uncle Sam this year, you still gotta pay up by April 18. Otherwise you’ll get hit with penalties and interest on what you owe. No bueno.

When you file for an extension, be sure to estimate what you expect to owe and pay that amount by April 18. That way you avoid any late fees.

Will I Get My Refund Faster if I Don’t Extend?

Nope! Filing earlier doesn’t get you your refund any quicker. The IRS can’t start processing returns until mid-February anyway. And with an extension, you still might get your refund within a few weeks if you file by October. Ain’t no thang.

What Do I Do if I Miss the October Deadline?

If you blow past the October 15 extended deadline, all hope isn’t lost. You can still file your return late and likely avoid major penalties. Here’s some options:

• File ASAP after October – The failure to file penalty is 5% per month of unpaid taxes. So file quickly to minimize penalties.
• Look into “first time” abatement – The IRS may waive penalties for late filers who have a clean history.
• Request a “reasonable cause” waiver – Penalties may be waived if you can show reasonable circumstances for filing late.
• Set up a payment plan – The IRS may let you pay what you owe in installments over time.

While filing late isn’t ideal, the IRS offers payment options to help taxpayers who are struggling to pay their tax bill. The key is getting in touch with them ASAP if you miss your deadlines.

The Extension Process Step-By-Step

If you decide to extend your federal taxes, here are the basic steps:

1. Request an automatic extension by April 18
2. Estimate your tax liability and pay any amount due
3. Check your state’s requirements for an extension
4. Gather any remaining documents and prepare your return
5. File Form 1040 by the October 15 deadline
6. Pay any remaining balance due

It takes some planning, but getting an extension can really save your behind if April 18 is coming up fast and you’re not ready. Just be sure to estimate your taxes carefully and pay on time to avoid penalties.

And if you’re a hardcore procrastinator, mark your calendars now for October 15. The IRS doesn’t play around when it comes to late filers!

The Pros and Cons of Extending Your Taxes

An extension has some clear benefits, but there are a few downsides to keep in mind too:

Pros:

• Avoid late filing penalties
• More time to file an accurate return
• Ability to gather missing documents
• Worry less on April 18 if you’re not ready

Cons:

• Need to estimate taxes owed and pay on time
• Interest charges if you underestimate your liability
• Delayed refund (if you’re getting one)
• Easy to forget about the October deadline

For most folks, the pros outweigh the cons when it comes to extending your taxes. Having the extra time can really take the stress out of filing your return.

What If I’m Out of the Country on April 18?

Planning a vacation abroad? No problem. U.S. citizens and resident aliens can automatically get 2 extra months to file and pay their taxes when out of the country on April 18.

Instead of extending to October 15, your deadline would be June 15. Sweet! Just file Form 4868 and be sure to check the box saying you were out of the country.

This extension gives you an extra 2 months for both filing AND paying what you owe. International travel for the tax win!

Can I Still Get an Extension If I Owe the IRS?

Yep! You can still get an extension even if you owe back taxes or other debt to the IRS. The key is filing Form 4868 by April 18 and paying your estimated tax due.

The extension gives you more time to file, but you gotta pay your estimated balance on time. This prevents getting hit with the failure to pay penalty.

If you have outstanding debt, the IRS may apply any refund you’re due to your existing obligations. So you may not see that refund cash until the IRS debt is paid off.

What If I’m Being Audited or Appealing a Case?

If you’re already dealing with the IRS for an audit, tax appeal, or another enforcement action, how does that impact getting a filing extension?

The good news is you can still get an automatic 6-month extension by filing Form 4868, even if you have ongoing issues with the IRS. Those other matters don’t affect your ability to extend your tax return.

However, if you owe money related to the audit or appeal, you still must pay the estimated amount due by the April deadline to avoid late payment penalties. Don’t try to get sneaky!

Can I File an Extension If I’m Self-Employed?

Being self-employed or having your own business comes with extra tax headaches. But yes, you can absolutely file an extension if you need more time as a freelancer or small business owner.

The process is the same – file Form 4868 by April 18 and pay your estimated tax liability. This gives you until October 15 to file Form 1040 with Schedule C, F, or SE.

One catch: if you owe self-employment tax, that payment is still due in April. An extension gives you more time to file your 1040, but estimated self-employment taxes must be paid on time to avoid penalties.

What if I’m Living Abroad?

If you live outside the U.S., you likely qualify to extend your filing deadline to June 15 automatically. But you’ll need to file Form 4868 and pay any estimated taxes owed.

An international address on Form 4868 triggers the special June 15 deadline. Just be sure to accurately estimate your liability – the late payment penalty still applies if you’re short on what you owe!

Can I File an Extension for a Deceased Person?

If you’re filing taxes on behalf of someone who passed away, you can request an extension using Form 4868. This gives you more time to file an accurate return.

Write “Deceased” across the top of the form and enter the date of death. But be sure to pay any estimated taxes owed by the April deadline to avoid penalties.

If you miss the October extended deadline, the late filing penalty may be waived if you can show reasonable cause for filing late. But interest will still accrue on any unpaid tax liability.

What If I’m Impacted by a Natural Disaster?

If a natural disaster like a hurricane, tornado, or wildfire strikes your area, you may qualify for extra time from the IRS both to file AND pay your taxes.

Taxpayers in presidentially declared disaster areas typically get an additional 120 days to file returns and pay taxes. You’ll need to call the IRS disaster hotline to request the specific relief.

The IRS may also waive late filing and payment penalties for disaster victims. Definitely reach out to them if something like a flood or severe storm disrupts your tax prep.

Can I Revoke My Extension?

Changed your mind and want to revoke your extension? No prob, you can absolutely withdraw your request for more time.

Simply complete Form 4868 again, but this time check the box to file your return on time. You can e-file the second Form 4868 to revoke the extension.

Just be sure you have everything ready to file on time if you go this route. And you’ll still need to pay any estimated tax due by April 18.

What Records Should I Keep?

When you extend your taxes, be sure to hang on to all your supporting documents until you file in October. That includes:

• W-2s and 1099s
• Receipts for deductions and credits
• Records of virtual currency transactions
• Mileage logs for business driving
• Closing statements for home sales
• Records of retirement contributions

You may need this paperwork to verify your return if audited or amended later. Keep it handy through October just in case.