Important Info About an IRS Tax Extension
Wow, you may think, thatís so nice of the IRS. You canít get your taxes done on time so they give you more time. How convenient! Why would they do that? Well hereís a very important piece of news about the IRS tax extension:
You get more time to submit your paperwork but you donít get more time to pay anything you may owe.
Watch Out for Interest and Penalties
You will be charged interest on the amount you owe, plus possibly some nasty penalties. Every year, taxpayers are lured into thinking they have more time to pay by the so-called IRS tax extension. Nice!
If you need a 2014 IRS tax extension make sure you file the paperwork by April 15, 2014. You get six extra months and then your federal income tax return is due on October 14, 2014. A 2014 IRS tax extension is for your tax year 2013 income tax return, which you will do in 2014.
2014 Tax Season Gets Late Start
Tax Season Ė the IRS gets off to a late start and didnít start accepting tax returns until Jan 31, but anyone can file their tax return now and millions of tax refunds have already been sent out to tax filers that completed and submitted their tax returns.
The Tax Filing Deadline is April 15, 2014, if you canít file on time, you should file a IRS tax extension Form 4868 to lock in your extension of time to file a tax return. This is an extension of time to file but it does NOT grant you extra time to pay. You must send in a payment for whatever you still owe in taxes with your extension form. Otherwise, you may be able to set up an installment agreement with IRS if you canít pay the amount owed in full. Either way, donít blow it off or it will cost you dearly!
How To File A State Tax Extension
In most cases, any taxpayer who file a federal income tax return will also be required to file a state income tax return as well. However, this will not always be the case as some states do not impose an income tax burden.
While the IRS requires you to submit Form 4868 to request a tax extension for more time to file your return, each state will have its own requirements that you will need to follow to obtain a similar extension on your state tax return.
Applying For Your State Tax Extension
Some states require you to file a specific tax extension form by the original due date for filing your return. Other states including Wisconsin, Alabama and California offer all taxpayers an automatic state tax extension without having to submit and form at all.
What You Should Do
Check with your state tax authority. Some states will grant you a six-month extension, but you must file a form to request it. For the nine states that do not impose a state income tax, Alaska, Florida, Nevada, South Dakota, Texas, and Washington, they donít even have to file an income tax return, let alone request a state tax extension.
If your state does impose income taxes, the appropriate state tax form for your state must be filed for that correct state-specific form to allow you to obtain a tax extension. To obtain you specific statetax extension form you can either access your state tax authorityís website and search for the extension form, check with your local post office or library, or have your tax preparation software, such as TurboTax Online, automatically generate your state tax extension from for you.
Pay Your Taxes Owed, Or Else!
Lastly, like federal taxes, a state tax extension of time to file your state income tax return is not an extension of time to pay any stae taxes that you may owe. If you still owe more income tax at the end of the year, you better pay it or you may be subjected to late-payment penalties and interst charges if you fail to pay the full amount owed by the original due date of your tax return.
You can avoid paying penalties by calculating a quick tax estimate of what you might owe and submiting a payment of that amount or more. Even if you overpay, you can avoid the change of penalties and claim a refund for any overpayment in a few months when you eventually file your state tax return.
Meet Your Tax Extension Deadline!
Make sure once you have been granted an extension that you submit your return by your extended deadline, In most cases, your state tax return is due by October 15. This give you the advantage of a six extra months to file. However, if you fail to file a completed tax return by this date, your state may charge you penalties just for filing your return late.