Master the Art of Getting a Tax Extension in 2024
How to Ask for an Extension on Your Taxes in 2024
In February, you received your W-2 and a few other documents. You didn’t think much of them because you planned to file your taxes later. You might have put off filing your taxes because you were missing an important paper.March went by so quickly that Tax Day was here before you knew it.
You may need to make an extra tax return if that’s you. I am still trying to understand what that means and how it works. Do not worry. We know everything you need to know about extending your tax return.
Main Points
There is no extra time to pay your taxes with a tax extension. You only have six more months to file your tax return.
To get more time to file, you must fill out Form 4868 and send it to the IRS by Tax Day, which in 2024 is April 15.
If you don’t file your return on time, late fees of up to 25% of what you owe will be added to your tax bill every month. You’ll also have to pay interest, so make sure you add an extra.
What is an extra year for taxes?
A tax delay gives you six more months to file your taxes. If you live in 2024, Tax Day is April 15. That means your tax return is due October 15. It’s just in time for a pumpkin spice coffee (okay, pumpkin spice everything).
Plus, there’s more good news: filing for a tax extension is free! The form to ask for more time only takes a short time to fill out.
Warning: you may think an extension will give you six more months to pay your taxes, but that won’t happen. There is no free way to get more time to pay Uncle Sam if you owe money. Oh no!
Tax Day is coming up, but you should still file an extension even if you can’t pay anything. The fine for not filing your taxes is much worse than filing and paying late.
Please do not give up, put this off, or ignore it entirely because you feel down. In the first six months, pay as much of your tax bill as possible. If you still can’t, talk to the IRS about setting up a payment plan.
How Does an Extra Tax Year Work?
A tax extension only does one thing: it gives you more time to file your taxes. That can be very helpful if April 15 is coming up quickly and you still need to get your tax papers or be able to file.
If you owe taxes, you still have to pay them on Tax Day, even if you got an extension. If you don’t pay by the original tax filing date, you’ll also have to pay interest and late-payment fees of 0.5% of your monthly tax bill, up to a maximum of 25%.2 Oh no!
But if you file an extension, you can avoid the big penalty for failing to file, which is 5% of your unpaid tax bill every month, up to a maximum of 25%.3 Since you know you can’t pay by Tax Day, it’s always best to ask for more time to file.
What should you do if the IRS owes you money and you don’t owe taxes? You won’t have to file an extension because you won’t be penalized for not filing your tax return (no tax bill, no failure-to-file penalty).
But if you wait too long to file, you might not get your refund, so filing your tax return is essential. Even if you don’t believe you owe anything.
If you’re going to figure out how much tax you owe and how much you’ve already paid for Form 4868, you might as well file your tax return. It will probably take less time than you think it will, and after that, you won’t have to worry about it!
How do I File an Extra Tax Return?
Fill out Form 4868 and send it in by Tax Day, April 15, 2024. That’s all you need to do to get more time to file your 2024 taxes. 4 You can send it by mail or online.
Form 4868 is a tax form, so it’s easy to fill out. Here are some things you’ll need to know:
You should give your name, address, and SSN.
Your expected tax debt (how much you owe in federal taxes).
You can determine how much federal tax you’ve already paid on your W-2. It would help if you told the IRS about this so that you can pay your taxes when you file your extension.
You can file Form 4868 in two ways:
You can file your tax extension online.
You can e-file an extension with the IRS through their website. You could also use your tax program to ask for more time. You should get tax software that is simple to use and doesn’t charge any extra fees.
Paying your taxes online, in whole or in part, will automatically give you more time to file. You won’t need to fill out Form 4868, though. It would help if you still made your tax return.
Use the mail to send in your tax extension.
Do you like the way stamps and letters taste when you lick them? Form 4868 is available on the IRS website. Please fill it out and mail it to the IRS with your tax bill and a check or money order by Tax Day.
But remember the word “snail.” If you want Uncle Sam to answer quickly, you must ask for an extension online.
When should you file an extra tax return?
Let’s get this straight. You should get off the couch and do your taxes, even if they’re pretty easy and you’re just feeling lazy. Get a laptop and do your taxes while sitting on your couch.
If not, you can file an extension in these situations:
1. You need the paperwork you need.
Do you need your W-2, 1099, or other important papers? If so, you should ask for more time, get those papers together, and do your taxes.
2. Something unexpected happens in your life.
Tax time doesn’t stop life. Don’t push yourself to finish your taxes if something terrible happens in your life, like death or getting sick. Put in for an extension, take care of your family, and do your taxes later. Remember them!
3. Your tax situation is challenging, and you need more time.
It can be hard to file your taxes if you have a small business or a lot of tax benefits. Extending the due date to October can help you avoid rushing through your taxes and making mistakes.
But listen up: you should get help from a professional if your financial situation is that hard to understand. A professional can do it in hours, whereas you could take days or weeks.
What will happen if I don’t file my taxes on time?
One of two things could happen when it comes to late fees for not filing your taxes:
Are you hoping for a refund?
If you expect a return, filing late will be fine. You’ll get your tax return after you file, but only after. For up to three years, the IRS will keep your money. 5 What’s going to happen in three years? The IRS takes the money.
Were you taxed?
It could cost you much money if you owe taxes and don’t file an extension. You will have to pay an extra 5% of what you owe up to 25% for every month (or part month) that you don’t file your return.6
Let’s say you owe $1,000; wait to pay it by the due date of April 15, and don’t ask for more time. June 15 is the last day you can file your taxes. The fine for not filing would be $100 ($1,000 times 5% per month). You’ll also have to pay interest on your bill, which is 4% per year right now.7
What will happen if I don’t pay my taxes on time?
You ask for more time to pay your taxes but can’t. The failure-to-file punishment is much worse than the late payment penalty. You won’t have to pay 5% every month; instead, you’ll only have to pay 0.5% up to 25%. Plus, an interest of 4% will be added.8
Let’s look at our first case again. Let’s say you owe $1,000, but you ask for more time to pay this time. Your fine would be $10 ($1,000 x 1%), plus interest, by June 15.
Related articles from your friends at Your Career Place.
https://yourcareerplace.com/finances/avoid-these-tax-blunders
https://yourcareerplace.com/finances/tax-guide-2024-prepare-and-pay-federal-taxes-now
