How to file an extension

How to file an extension.

Before we get into the How, I want to make 1 thing absolutely clear. An extension to file your federal tax return by the extension due date of Oct 15, 2024,IS NOT an extension to pay the taxes you owe. It is an extension to file your tax return.

Okay, so what does this mean in the big picture?

The IRS expects that all taxpayers will pay at least 90% of their tax liability during the tax year, or by Jan 16th of the next year for quarterly estimated tax filers. That means that you should owe less than 10% of your overall tax liability at tax time, April 15th. Most taxpayers meet this obligation through employee withholdings in their paychecks. If you owe more than 10% of your tax liability, for any reason, you may be subject to IRS Penalties. (See IRS Penalty blog for specifics.)

But you don’t think you can get your tax return paperwork done by April 15th. Now what?

If you use a tax professional, their software can electronically file Form 4868 to request an extension to file your federal tax return, along with your estimated tax payment(optional).

If you do it yourself, you can complete and mail a copy of Form 4868 to the IRS, see About Form 4868.

If you use online software, whether paid tax programs, or any of the Free File sites, you should be able to electronically file your Form 4868.

Last, if you intend to make an estimated tax payment along with your extension, just log on to your personal account at IRS.gov Select make a payment. When you get to the section to choose your payment type, choose Extension. This will allow you to make the extension payment for your 1040 filing WITHOUT having to file Form 4868 at all.

It couldn’t be simpler.

If you need an extension and want expert help, you can click this link to set an appointment to speak with a Tax Expert from Lisa Brugman, EA & Associates.