When April 15 comes around each year, the regular tax filing deadline can be pretty stressful for many taxpayers. If you find yourself needing more time to figure out how to file self-employment taxes or gather important documents, don’t worry – you can actually get a tax extension if you miss the deadline. Getting a tax extension in 2024 is a simple process that gives you extra time to get your taxes sorted out properly.
So, what exactly is a tax extension? Essentially, it’s a formal request you file with the IRS (Internal Revenue Service) to ask for more time to prepare and submit your tax documents. It can be helpful for both individuals and businesses who need that extra time to get all their tax info together.
For the 2023 tax year, tax extensions are available to everyone. In most cases, an IRS extension will grant you an extra six months to file your taxes and arrange a payment plan to settle your tax bill in full before the deadline. However, there are special cases where the rules for tax extensions differ. For example, military service members in a combat zone have 180 days after returning to the U.S. to file their taxes and pay any owed tax. U.S. citizens living abroad get an extra two months to file their taxes, but they still need to pay interest on any outstanding taxes not paid by the due date.
While the IRS typically doesn’t penalize you for filing an extension, it’s crucial to submit the extension form before the April 15 deadline to avoid late filing or late payment penalties. If you file your federal taxes late, the IRS can charge a late payment penalty of 0.5% of your tax liability each month until it’s paid off. There’s also a late filing penalty of 5% per month for overdue taxes, not exceeding 25% of the unpaid taxes. To avoid these penalties, make sure to file your return within the extension period and pay your taxes on time.
To file a tax extension correctly, you’ll need to gather your personal details like your social security number, legal name, address, and date of birth. Complete IRS Form 4868 with the necessary information, estimate the taxes you expect to owe, and submit the form before the deadline. If you owe taxes, make a partial payment by the deadline and file your tax return before the extended deadline to prevent penalties.
If you’re a deployed military member or a U.S. citizen living abroad, there are specific rules and guidelines for filing tax extensions that can make the process smoother. For example, deployed military personnel get an extension of at least 180 days after their service ends to file their taxes without interest and penalties.
Filing for a tax extension online through services like H&R Block, TurboTax, or IRS Free File can simplify the process. Remember, even with an extension, you still need to pay your taxes by the original deadline to avoid penalties and interest charges. If you can’t file by the extended deadline, reach out to the IRS for assistance and possible penalty relief.
In a nutshell, applying for a tax extension in 2024 is a straightforward way to get more time to file your taxes. You can request an extension of up to six months, but make sure to submit the request before your return’s regular due date to steer clear of late filing penalties.
