Tax Filing Extensions: What You Need to Know

Taxes 101

As the tax filing deadline is approaching (April 18th, 2011) , many people are realizing that they need more time to get their filing together. It’s possible to get an extension to October 17, 2011, but you need to do it correctly. Trying to decide whether or not to file an extension? Here are 8 tips from TurboTax to help you decide whether or not to file a tax extension. That’s why you’ll need to know which form to use and how to complete as required.

Wondering what a tax extension is? Here’s a short video explanation of the concept:

Filing for a Tax Extension

If you need to go ahead and  file an extension there are 3 ways to go about it. You’ll need to use Form 4868 (Application For Automatic Extension of Time To File U.S. Individual Tax Return).

  • Online: You can use TurboTax Easy Extension to file a personal tax extension for free.
  • Partial Payment: If you use a valid debit/credit card, you send in a partial payment of at least $1 to receive an extension.
  • Paper File: Simply complete Form 4868 and mail it in to one of the addresses listed on the 4th page of the form.

Please remember that the extension is for filing your tax returns, not for your payment. You will owe interest on any payments made after April 18, 2011. You also may have a additional penalty if you paid less than 90% of your tax burden by the deadline.

Please check to see what your state’s specific guidelines are for tax extensions. The IRS also has information for tax payers who have special circumstances, such as those serving in a combat zone.

Thoughts on filing a Tax Extension

How many of you will be filing tax extensions this year? How are preparing to send your extension form in?

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