With tax season now in full swing, numerous taxpayers have begun the arduous process of filing taxes. A few weeks remain until the tax filing deadline, but you have options by filing for an extension. It is possible to file tax extensions to obtain additional time to file taxes.
Both state and federal tax extensions are available for filing. Here are the instructions for filing federal and state tax extensions in 2022.
Form 4868 is used to Request a Tax Extension
If, for whatever reason, you are unable to file federal taxes by the deadline (April 18, 2022), you can file for an extension using Form 4868. Form 4868 grants you an additional six months to file your federal tax return. You can file for tax extensions for any reason, and it won’t take long to complete the form.
Form 4868 consists of two sections. In the first section of the form, you will enter your:
- Identification Number
- Social Security number of the spouse(if applicable).
Within the second section of the form, you will estimate your final tax liability. This will be determined by subtracting the total amount of tax payments made throughout the year. If you anticipate owing taxes, you must pay the balance using Form 4868.
You can request an extension for your federal tax return online.
How to File an Online Tax Extension Request
Online filing is the first option for a tax extension request. Individual taxpayers are permitted to use Free File, allowing you to electronically submit your tax extension form.
If you file an extension request electronically:
- The IRS states that if October 15 falls on a Saturday, Sunday, or legal holiday, the filing deadline is extended to the next business day, which is October 17, 2022.
- You must file your extension request no later than your tax return’s regular due date.
- You should estimate your tax liability and pay it by the due date to avoid incurring penalties.
Extending tax filing deadlines does not extend payment deadlines
Despite the fact that you can file for a tax extension, you will not receive a payment deadline extension.
Even if you submit Form 4868 to request an extension, you must still send the estimated amount due. You will incur less interest and penalties if you pay more, and you may receive a tax refund when you file your return.
If you file online for tax extensions, you can make electronic payments on the IRS or state website. If you file your extension request by mail, you can include payments with your Form 4868.
How Do You Know If Your Request for a Tax Extension Was Approved?
Following the submission of your federal tax extension request, the next step is the approval procedure. The approval process is typically automatic, but you must ensure that Form 4868 is correctly filled out. If you do not verify that your information is accurate, your tax extension request may be denied.
How you will receive approval will depend on how Form 4868 was submitted. Online filers of tax extension requests will receive confirmation via email within twenty-four hours. For taxpayers who request an extension by mail, you will not receive an email. Instead, you will contact the IRS to confirm receipt of your extension request.
State Tax Increases
You may be eligible for state tax extensions in addition to federal tax extensions. In addition to a six-month extension, these extensions are available to all taxpayers. Depending on your state, you may need to complete a form prior to the deadline for filing your state tax return.
As with federal tax returns, requesting an extension for state tax returns does not extend the due date. Different states have different filing requirements for state tax extensions, which may impact how you pay state taxes:
- Some states automatically grant state tax extensions when federal extensions are recognised. Form 4868 may be required to be attached to your state tax extension request form.
- Some states will grant a state extension if you file for a federal extension and have no tax liability.
- If the majority of tax liability is paid by April 15, some states will accept federal extensions as valid state extensions.
- To avoid penalties, taxpayers may be subject to payment requirements for their tax obligations.
- In certain states, taxpayers who do not qualify for an automatic federal extension must file a state form.
- In many states, extension requests and tax payments can be made online.
- If you reside in a state with no income tax, you are exempt from filing a state tax return. You will also not be required to file a state tax extension request.
Is There a Penalty for Filing an Extended Tax Return?
- If you need an extension, you must request one before the April 18 deadline to avoid an IRS penalty for filing late.
- After filing for tax extensions, you may wonder if you will be subject to a tax extension penalty. There is no fee for requesting an extension, but your taxes are still due by the federal and state deadlines.
- If you do not pay your taxes on time, you will incur penalties. There may also be penalties for nonpayment or underpayment.
The tax specialists at The Pro Accountants and Tax Consultants LLC can assist you
You still have time to file for a federal or state tax extension as tax season continues. Filing for an extension will give you additional time to file your taxes, but not to pay them.
When you need assistance filing for an extension, tax professionals are available to assist you. Contact the tax professionals at The Pro Accountants and Tax Consultants LLC to receive the assistance you require before the deadline.