Filing taxes isn’t a pleasurable task, so many Americans procrastinate and wind up needing to submit an extension in order to avoid penalties for late filing, and depending on where they live, they may also need to file for an extension on state taxes as well.
Filing for a tax extension grants the taxpayer an additional six months to file their tax return, with the new deadline being October 16, 2023.
You may file the file extension for free
The federal tax extension must be submitted by April 18, and it is free to do so via the IRS Free File online, using Form 4868, with the program meant to be a step-by-step guided tax aid.
Another alternative is to use the IRS Pay Online option to make an electronic tax payment for a portion or all of the estimated income tax.
When making the payment, it should be specified that it is for a tax extension, and the taxpayer should keep the confirmation number for future reference. The IRS will treat it as an extension request this way.
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Do I Need to File a Tax Extension?
Most people who file for an extension have more difficult taxes than, for example, Americans who receive a W-2 from their employment and a few forms for mortgage interest and student loan interest.
The extended deadline gives them more time to assemble the information and documentation needed to file an appropriate return.
But, most significantly, the delay only applies to filing the return, not to paying the taxes. You will continue to owe any taxes owed as of the tax filing date.
The most common error made by taxpayers is believing that the extension also applies to tax payments. According to Nell Curtis, an accounting lecturer at Milwaukee Area Technical College in Wisconsin, failing to pay taxes on time might result in fines and interest costs.
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