For many of us, it never seems to be an opportune time to get everything together and prepare our taxes.
Sometimes this means filing an automatic extension of time to file your income taxes.
This is a smart move if you do not have all your information. It may be your only choice if you are waiting for a partnership or other organization to send forms, or if an illness or emergency prevents you from completing your return.
3 easy steps to filing an extension
It is easy to get a six-month extension of time to file your federal return. Use IRS Form 4868 Automatic Request Extension of time to file the declaration of individual incomes of US .
Here's how to file your extension:
- Go through the Q & A steps TaxACT. It is OK to use estimates. (Be sure to use TaxACT Bookmarks for estimates so you can easily confirm or change the amounts when you come back to complete your return.)
- Within Deposit steps, enter information for an extension. If you have worked on your back, you can go directly to the section for filing an extension by clicking the filing , then clicking file extension and following the instructions.
- While you can print and mail Form 4868, it is recommended to e-file the form as you must file this form by April 15.
do not forget to make a payment with your extension if you think that you have to pay the tax.
an extension does not give you more time to pay. If you put out you have to pay tax, you could end up paying penalties and interest.
If you need to file a tax return on income of the state, do not forget to file an application for extension of the state as well.
3 reasons not to file for an extension
The filing of an extension is easy - perhaps too easy. It can become a habit
Before automatically file an extension, consider these facts.
One: If you think you need more taxes, but are not sure how much you'll probably pay too much tax your job or not enough.
If you pay too much, you lose the use of your money yet (to be used to repay debt or invest in retirement savings)
If you pay too little, you must yet the interest and possibly penalties on the amount you should have paid
Two: .. If you have a substantial refund coming, you should get your refund as soon as possible and use it to work with your financial goals.
For example, if you have high interest credit card debt, you could save a lot of interest now by getting your refund and pay off your debt sooner
Three : .. filing an extension is like filing your statement
If you almost expect the full six months to complete your return, you will drag all your information and remember what you were doing. It's like your back twice!
If possible, once you have started your return you save time and trouble by finishing and electronic filing by April 15.
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