If you find that you will not be able to complete your return for federal taxes 2023, you will need to file an extension and get a breather up to October 16 this year. While the IRS requires you to file Form 4868 for the federal extension, it is not the same for states as each state has its requirement for taxes in 2023.
But before you go for such a long extension, be sure that it serves your purpose. There are several reasons why you might need to push back your deadline for taxes in 2023. The common reasons are that you might need extra time to track down all your missing tax and other relevant documents. Or it could also be events unrelated and unexpected that are preventing you from filing your taxes in 2023 in time.
You might be busy with a family emergency or have simply not found sufficient time to organize your tax files. And it is not too complicated to get the extension. But you need to be aware that you should pay your taxes in time while getting the extension to file your paperwork.
You need to be aware that an extension only serves to postpone your due date for the filing of your relevant tax documents. But it should not be considered an extension for taxes that you might owe this year. Even if you have not completed your calculations, you would need to arrive at an estimate to avoid paying up late-filing penalties.
Getting An Extension On Your Taxes 2023
Filing an extension on your taxes for 2023 will thus not give you time to pay any taxes due, it only gives you the extra time to get your documents in order. You need to know some of the rules to file your taxes for 2023, from forms and dates to all the special rules for the year.
You can file your tax extension either electronically or by going the conventional way of mailing through a paper form. Any overpayment that you do will get refunded when you file your taxes for 2023 by the six-month extension period.
The extension on your tax filing as an individual is obtained through Form 4868. It is called the Application for Automatic Extension of Time to File US Individual Income Tax Return.
Filing An Extension For Your Taxes 2023
You can mail the extension directly to the IRS. All you need to do is simply refer to IRS Form 4868 which automatically extends the time for US individuals. All you have to do is complete and print the form and send it to the IRS address in your respective state.
If you owe federal taxes, add the estimated payment that you have self-assessed with Form 4868 and mail it. It should be postmarked by April 18, 2023, to avoid any interest or penalties. You should then complete and file your return on or before October 16, 2023.
You can also opt for private software to make the process easier. Using them you can e-file your federal extension. You can also make payments of due taxes directly from your savings or checking account. You can also print a PDF copy of your e-filed extension and receive notifications when your extension is finally accepted by the IRS. You can also get easy instructions on how to file your state tax extension by mail.
Once the extension is approved, you will have six whole months until October 16, 2023, before which to file your returns. And if you are expecting a tax refund on your taxes 2023, it will be processed only after you have completed your tax filing. In that case, it would be in It is in your interest to file your return at the earliest and not wait again for the deadline to approach before rushing to beat the extended deadline.
A Different Rule For State Taxes 2023
The guidelines for a tax extension for states could vary. If you need to see detailed information about state extension filing deadlines and mailing addresses, you should select your state from the website of the state tax authority.
The Misconception About Income Tax Filing Extensions
The most common misconception about income tax extensions is that they give you extra time to pay your tax bill. But the extra time you get is only to get your paper in order. If you think that you will have taxes to pay along with the submission of taxes 2023, they will have to pay upfront before the April 18 deadline. Dragging your payment will only mean hefty fines and penalties.
Around 90 million filers have already submitted their returns by March 31 as data from the IRS reveals.
One category of people who are provided an automatic extension are people who live in areas that have been hit by disasters such as tornadoes or flooding, the IRS declared. If you are among those living in such areas, you do not have to immediately file extensive paperwork or invite the Internal Revenue Service to file.
Guidelines for state tax extension are different from federal tax filing requirements. You will get detailed information about state extension filing deadlines and mailing addresses from every individual state tax authority website.
You can use multiple payment methods that cover both credit and debit cards for paying your taxes. But you need to be cautious while applying for an extension of your filing date. If the IRS thinks that your estimate of the total taxes that you owe is unreasonable, the agency might disallow the extension and assess a late-filing penalty.
If by any chance you underestimate the amount of the federal tax that you finally owe, you could end up paying a penalty of 0.5% of the underpayment each month until you pay the remaining balance. For instance, if you pay $500 by the original filing deadline, but finally end up owing $1,000, you will end up paying 0.5% per month on the $500 that is overdue. That comes to around $2 a month if you do not pay in full before the normal deadline in April.
