Tax season – everyone’s favorite time of year. But did you know you can get more time to file your return by filing a tax extension? As the April 15th deadline looms, you may find yourself falling behind on gathering everything needed to file your federal and state 1040 tax returns. Filing for an extension is a simple process that can provide you with an additional 6 months to complete your taxes, avoiding any late filing penalties.
The key benefits of filing a 1040 tax extension include:
- Avoiding Late Filing Penalties – Getting an extension pushes your filing deadline back to October 15th, giving you more time to pull together your tax documents and file accurately without incurring failure to file penalties. These penalties can be significant and are completely avoidable by filing a tax extension and making sure to finish filing within the 6 month extended time-frame.
- Breathing Room to Prepare Accurate Returns – Worried that you may be handling certain tax documents incorrectly? Rushing to meet the April deadline can lead to mistakes that could result in paying too much or too little in taxes. An extension lets you take the extra time needed to ensure you don’t miss any deductions or credits you’re entitled to. This is especially helpful if you’re waiting on additional tax documents or need errors corrected on tax documents from providers like brokers or employers.
- Extra Time to Work with a Tax Professional – With the extra 6 months, you can meet with a CPA or tax preparation service to have your taxes professionally prepared. This gives you access to expert tax advice and an experienced review of your return. A tax professional can help you identify deductions and strategies to reduce your tax liability.
Filing for an extension is easy – you simply need to submit IRS Form 4868 by April 15th. This form is available on the IRS website and only requires basic information such as your name, address, and an estimate of your tax liability. It’s important for your estimate of tax liability to be as close to your finalized tax amount as possible, because you don’t want to be charged interest or late payment penalties. Get in touch with a CPA or professional tax service if you want to ensure your estimate is realistic.
Most states also accept the federal extension form, granting an automatic extension for your state taxes as well. However, be sure to confirm the process with your state tax agency to ensure you’re not assessed any late filing penalties on your state tax return.
Once you’ve filed for an extension, make sure not to miss the October 15th deadline! Even though you have an extra 6 months, it can be easy for life to happen and for the finalization of your return to slip through the cracks. You must file your complete federal and state tax returns by the extended due date, including all supporting tax documents. If you end up owing additional taxes, interest and penalties may apply to any unpaid balance due on the returns.
Getting a filing extension provides valuable extra time to file accurate, complete tax returns. This can ensure you maximize deductions, access expert advice, and avoid stressful, costly mistakes. Just be sure to estimate any payment due by April 15th, and file the full returns by the October extension deadline.
Think you need assistance with estimating your tax liability for your 2023 taxes and want a seasoned, licensed professional to take a look at your tax situation? We have nearly a decade of experience in preparing tax returns, filing extensions and estimated payments, and planning a successful financial future for you and your business. Contact Mark Rivera CPA, PLLC today to save yourself the time and stress of doing tax filings yourself!
