Irs Tax Extension Deadline Oct 1: What To Know About Filing Your 2020 Tax Return
Next month’s final date to submit your taxes is approaching. We’ll explain filing options, refund schedules and how to view your tax account online.
Filing for an extension gives taxpayers extra time, but there are some consequences to be aware of.;
Tax day this year was extended until May 17, yet still millions of taxpayers had to rush to file their 2020 tax return. Many opted to file for an extension to get a couple more months to gather their records or get professional advice, or even to avoid potential mistakes. Now, that tax extension deadline is just a few weeks away.;
If you miss the Oct. 15 filing date, you’ll owe late fees or more interest. Remember, an extension doesn’t postpone having to pay taxes that you owe, it just gives you extra time to file your return. The IRS is still providing several;electronic filing options, including free file for individuals whose income is $72,000.;
If you haven’t yet filed your 2020 tax return, you could be missing out on money, like a tax refund, stimulus checks or child tax credit payments. If you wait too long to file and claim a refund, the IRS says you could risk losing it completely. We’ll explain below how to know if the deadline applies to you, who gets more time to file and what happens if you miss the October deadline. Here’s how to track your IRS tax refund and what to know about refunds on 2020 unemployment benefits.;
What Is Form 4: Application For Automatic Extension Of Time To File Us Individual Income Tax Return
If you can’t file your federal income tax return by the filing deadline, you can get an extension just by asking for it.
All you need to do is submit an Internal Revenue Service extension form, known officially as Form 4868: Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.;
Notably, however, this doesn’t get you more time to pay any taxes you owe. It only extends the deadline to fill out and submit the paperwork.
Can’t Recharacterize An Ira Contribution
You were able to change the nature of your IRA by the October extended deadline before the enactment of the;Tax Cuts and Jobs Act; as long as your IRA was funded by the April deadline. You could essentially turn your traditional IRA contribution into a Roth IRA, or vice versa, or even use this provision to recharacterize a Roth conversion back to a traditional IRA.
Unfortunately, conversions made after this date cannot be recharacterized under the TCJA as of January 1, 2018.
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How And When To File An Extension On Business Taxes
If you can’t complete the tax return for your business by the filing date, you can request an extension of time to file. This article discusses how and when to file, what form to use, and other important information about extensions.
An extension of time to file is not an extension on paying taxes due. Even if you file an extension application, you must pay taxes due by deadline, in order to avoid late-payment penalties and fines.
Does Form 4868 Give Me More Time To Pay My Taxes
No. Your payment is still due on the original due date, usually April 15.
If you submit a Form 4868 to the IRS, you should send in a payment of the estimated balance due. The more you pay, the less your interest and penalties will be if you pay less than you owe. If you file Form 4868 electronically but want to send a payment by mail, send a copy of the e-filed form along with your check. The form acts as your voucher in this case so your check will be credited properly to your tax account.
The IRS will allow you to skip filling out a Form 4868 entirely if you pay your estimated income tax due online or by phone using Direct Pay, EFTPS, or a credit or debit card and indicate that the payment is for an extension. It will provide confirmation of the extension if you take this route.
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General Income Tax Extension Questions
What does it mean that File Later is an “Authorized IRS e-file Provider”?An Authorized IRS eFile Provider is a tax professional or firm accepted into the IRS electronic filing program. As an authorized e-file provider, FileLater works closely with the IRS to ensure that our application is working properly and securely.
How can I check the status of my tax extension?If you used FileLater to file for a tax extension, you should receive an email regarding the status of your extension within minutes of eFiling. Be sure to check your junk folder if it doesnt arrive to your inbox. If you do not have the email, you can always login to your account and click on the My Tax Extensions link to find out the status of your extension.;
Can I file an extension and then decide later to submit my taxes on time?Yes. An approved tax extension gives you the ability to file by the extended filing deadline. However, if you choose to file your taxes by the original tax deadline after filing an extension, the IRS will simply ignore the extension of time you requested.
How do I know if I qualify for filing a tax extension?Everyone qualifies to file for an income tax extension. The IRS doesnt ask you to submit any explanation of why you want or need an extension. Almost all rejected extensions are the result of submitting incorrect information, such as a name and Social Security Number that do not match current IRS records.
How To Request A Tax Filing Extension
If you need more time, you shouldnt wait for the IRS to formally extend the tax deadline. Instead, you should file for an extension.
An extension gives you six additional months from the original due dateApril 15thnot the extended dateJuly 15th. If you are granted an extension, youll have until Oct. 15 to file your tax return. You must file for an extension no later than the current due date of your returnJuly 15th. This is only an extension to file your tax return, not extra time to pay your tax bill. You should still pay any amount due by the July 15 deadline.
There are multiple ways to file for an extension, including using FreeFile on IRS.gov, asking your tax preparer to file an extension for you, or mailing federal Form 4868 to the IRS. Filing for an extension is free.
Keep in mind the July 15 deadline may only apply to your federal tax return. Some states have extended their own filing and estimated payment deadlines to July 15, but not all of them. Its best to check your states guide to tax deadlines.;
If you arent seeking an extension, you should file your taxes as soon as possible to avoid any delays on getting your refund, should you be eligible for one.
Although only 10% of taxpayers file paper returns , theres already a backlog of 11 million pieces of unopened mail at the IRSand that doesnt include mail thats still coming in. In other words, filing sooner rather than later, and doing so electronically, will result in faster processing.;
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How Do I Know If I’m Eligible For A Tax Extension
The IRS will have granted a filing extension if you filed;Form 4868; either by paper or electronically using e-file before the May 17 filing deadline. You will have had to pay all or part of your estimated income tax due using;Direct Pay, the;Electronic Federal Tax Payment System, or using a debit or;, and note that you were filing for an extension.
Some taxpayers are automatically granted more time to file. This includes military personnel who are serving in a combat zone or persons in federally declared disaster areas.
Who Can File Form 4868
Taxpayers who want more time for any reason to file federal income tax returns can use Form 4868. You can file the form when you need an extension for a variety of returns in the 1040 series including:
- Form 1040: U.S. Individual Tax Return
- Form 1040-SR: U.S. Tax Return for Seniors
- Form 1040-NR: U.S. Nonresident Alien Income Tax Return
- Form 1040-PR: Self-Employment Tax Return-Puerto Rico
- Form 1040-SS: U.S. Self-Employment Tax Return
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What To Do If You Missed The Tax Deadline
The deadline to file your taxes has come and gone. Twice, even: The original April 17 deadline was extended to midnight April 18 after the Internal Revenue Service’s official website crashed and left millions of people frustrated.
If you still weren’t able to make the new deadline, though, you are not alone. Some people knew they couldn’t make it: The IRS estimated that it received 11.6 million requests for extensions, including one from President Donald Trump. Others simply watched it go by without a plan.
But while missing the deadline, whether on purpose or because it got away from you, is not uncommon, there are a few things you need to know to avoid some serious penalties.
The deadline for an extension was and, if you asked for one, you’ll have until Oct. 15 to file your taxes, the IRS notes. An extension to file, however, generally is not an extension to pay. You must have already paid what you owe by the deadline to avoid a late fee.
If you didn’t file for an extension, however, there are no penalties for filing late if you’re owed a refund. “There is no immediate sense of urgency,”Eric Bronnenkant, Head of Tax at Betterment, tells CNBC Make It, because “there is no interest or late-payment penalties.”
But you should still file as soon as you can so the IRS doesn’t keep your money: “If the taxpayer waits more than three years to file, the IRS will keep the refund due to the statute of limitations.”
Approval Is Usually Automatic
Most extension requests will be honored automatically; you don’t even have to explain to the IRS why you need the extension. Simply file the form.
But file it correctly: double-check your Social Security number and other data. Erroneous information can trigger a rare rejection.
Certain individualssuch as members of the military serving abroadreceive an automatic extension without having to apply or File Form 4868.
If you do still decide to file for an extension in 2021, note that you automatically have until May 17 or June 15 to file, depending on where you live. And if you were affected by Hurricane Ida, you have until January 3, 2022.
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Option : File Married Filing Separately
If you are concerned your spouse is not going to ever be ready to file or may not file at all, you can file on your own using the tax status.
Most tax preparers do not recommend filing using the married filing separately status because the tax liability is generally higher , and this tax filing status does not allow you to use some of the deductions and credits such as the earned income credit, child tax credit, student loan interest deduction, or the Lifetime Learning Credits. ;
The other complication is that if you file , you must choose the same method of recording deductions as your spouse . While a small business owner or someone who has had large medical bills may benefit from itemizing deductions, a teacher may have less deductions to itemize than the standard deduction .
However, one of the biggest reasons that spouses elect to file separately is because one person is concerned he or her spouse will either file a false tax return or never file. If you choose the tax status, you can get protection from audits and prosecution, but you need to remember that you are still 100% liable for any unpaid taxes, regardless of who earned the income, falsified his or her tax return, or didnt file.
The Power Of The Extension
Obviously, a tax extension extends your time to file your tax return. You get a whole six additional months to gather documentation and fill out all the forms. Thats a lot of time, but it can slide by quickly. Youd better make good use of it. Just make sure you send in Form 4868 by the original tax deadline, but preferably as early as possible — the moment you know you arent going to make Tax Day.
So, you filed for your tax extension, and you get six more months to file. Guess what you dont get. You dont get an extension on paying your taxes. Thats right. Payment is still due April 15. If you dont pay then, anything left starts accruing interest. If you dont pay any at all or make a plan to pay, you also get hit with a failure to pay penalty.
Oh, and if you didnt file for an extension and just let Tax Day blow by, you get a failure to file penalty, which is much harsher, believe it or not, than the one for failure to pay. By the way, there is no failure to file penalty if you are owed a refund. But, if you dont file, you wont get the refund. Fail to file for more than three years, and you can kiss that refund goodbye.
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Nonresidents Military Partial Residents Residents With Out
I am a resident of Missouri. Are the wages I earn in Missouri for “remote work” subject to Missouri withholding?
Yes. Any time an employee is performing services in exchange for wages in Missouri, those wages are subject to Missouri withholding. This applies in the case of “remote work” where an employee is located in Missouri, and performs services for the employer on a remote basis. This rule also applies if the service for which the employee is receiving wages is “standing down” .
I am a resident of Kansas. I am performing “remote work” at my residence in Kansas for a Missouri-based employer. Am I obligated to withhold Missouri tax from my wages?
No. If a nonresident employee performs all of his or her services outside of Missouri, the wages paid to that employee are not subject to Missouri withholding.
I am a nonresident with Missouri source income. Why am I required to include my non-Missouri source income on my return?
If you begin with only Missouri source income, your deductions will be too high. You must begin your Missouri return with your total federal adjusted gross income, even if you have income from a state other than Missouri. Your deductions and exemptions apply to your total income, not just your Missouri source income.
What Happens When You File An Extension
Filing an extension is one of the simpler tax challenges you’ll ever encounter, but you should understand what it does and doesn’t do.
Taxpayers should file Form 4868 to get the additional six months all at once. An extension of time to file in October doesn’t give you additional time to pay. The IRS will charge interest, and sometimes even penalties,;on tax payments;made after the applicable due date. Thus, the earlier you settle your debt with the IRS, the better. It’s worth the frustration of paying taxes and any penalties now, because it will save you from greater frustration when they compound, and you have to pay more later.
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When Will I Get My Tax Refund
If you expect a refund, you won’t receive it until after you file your return;and the IRS processes it.
What to do if you live abroad
You automatically get two extra months until June 15 to file your federal tax returns without submitting an IRS extension request if youre a U.S. citizen or resident alien and you live and work outside the U.S. and Puerto Rico.;
You don’t need to file Form 4868 to get this extension, but;include a statement that explains why you qualified for the later deadline.
But keep this in mind: Even though you may get an extension without incurring a penalty, you will have to pay interest on any tax not paid by May 17.;
If you can’t file by the automatic two-month extension date, you can file a;Form 4868;to;request an additional extension to Oct. 15. You have until June 15 to file this form.
Filing A Tax Extension With Turbotax
If you need more time to file, you can easily file your extension online with TurboTax Easy Extension.
Remember, with TurboTax, we’ll ask you simple questions about your life and help you fill out all the right tax forms. Whether you have a simple or complex tax situation, we’ve got you covered. Feel confident doing your own taxes.
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