A version of this article was previously published.
“A tax extension is an extension of time to file your tax return. However, it is not an extension of time to pay your entire tax bill.” efile.com
Federal Taxes are due on April 15th.
Why I’m Filing an Extension for Last Year’s Tax Returns
Summer is less busy for me than the beginning of the year. No summer university teaching frees up quite a bit of time. It’s a “no brainer” to put off filing our taxes until we have more free time. I made sure to pay the amount that will be owed in Federal and State taxes in order to avoid the penalty.
I used to believe that it was a character defect to get an extension on paying taxes. I didn’t realize that as long as the bill is paid in full by the due date, then there’s no harm in delaying the paper work. For some of you summer is more busy than March and April, in that case, file now and get it over with.
Should You File a Tax Extension?
The time is coming up really soon to get that tax return in. Here are some questions to ponder when deciding whether to file a tax extension.
- Are you at your wits end right now?
- Do you have a tax preparer?
- Do you plan on filing your own taxes but haven’t completed them yet?
- Have you bought the tax preparation software yet?
- Are other pressures in your life overwhelming you?
- Will you have more time in the summer to handle tax related matters?
If you answered “yes” to any of these questions (or “no” to the one about the tax preparer or tax prep software), maybe it is time to file a tax extension.
Remember that a tax extension allows you extra time to file your tax return, not extra time to pay what you owe!
How to File a Tax Extension?
According to the IRS, there are three ways request an automatic extension of time to file a U.S. individual income tax return:
1. You can electronically file Form 4868 (PDF), Application For Automatic Extension of Time To File U.S. Individual Tax Return
2. You can file a paper Form 4868, by mail.
3. You can pay all or part of your estimate of income tax due using a credit or debit card (EFYPS) and obtain an extension during the process. This approach may involve an extra fee.
If now is especially busy and you expect more free time for tax preparation in the upcoming months, consider filing an extension of time. Just remember, those six months can pass by really quickly, so don’t put off your filing until August!
Read What Others are Saying About Taxes
- What Happens if you Don’t File Your Taxes; Good Financial Cents
- What Should I do if I Miss the Tax Deadline? Bible Money Matters
- Top Tax Blog; Don’t Mess with Taxes
- Surprise! 5 Reasons You Might Not Get Your Tax Refund; Wise Bread
Barb Across the Web
Carnival of Retirement at Freeat33
Finance Carn. for Young Adults at Brick By Brick Investing
Carnival of MoneyPros at The Happy Homeowner
Carnival of MoneyPros at Nickel by Nickel
Finance Carn. for Young Adults at 20s Finances
Yakezie Carnival at Financially Digital
Carn. of Financial Camaraderie at Thirty Six Months
Have you ever filed a tax extension? Did it cause you to procrastinate even more?
image credit; google images-opposing view dot com