Some people file their federal income tax returns before April 15 and then some wait until 11:50 p.m. on April 15. This year we get until April 17, but it doesn’t matter much if you aren’t ready. Perhaps you haven’t received all your statements of income, 1099 or W-2 forms, or interest for your 1098 forms, or you are just having a hard time getting all you need together. If you need more time, the first thing you need to do is to file for a tax extension BEFORE April 15, or you can be subject to penalties. The worst thing you can do is not file for an extension.
It’s really very simple: Go to the IRS website, download and fill out IRS Form 4868. You can file Form 4868 by mail, over the Internet, via tax software or even by telephone.
Filling out Form 4868, available on the IRS website, can give you an extra six months to file most federal income tax forms, including the 1040, 1040A, 1040EZ, 1040NR and 1040NR-EZ. If the IRS grants you an extension, your new filing deadline becomes October 15.
Form 4868 is simple, and only nine lines long. You’ll need to provide:
- contact information, including your Social Security number (and your spouse’s, if applicable)
- your estimated tax liability — that is, what you think you will owe
- the amount you can pay now
You should make the best payment you can towards your estimated tax liability when you file Form 4868, because a filing extension is not a payment extension. Any tax you owe begins to accrue late payment penalties and interest after April 15. If you don’t know how much you owe, or can’t pay all of it, you have the option of paying whatever you can manage at the time. Every little bit helps reduce penalties and interest that will begin after April 15. You can also pay by credit card if cash flow is tight, but compare the interest on the card vs. what IRS will charge and see if that is a wise move.