The information in this article is up to date for tax year 2023 (returns filed in 2024).
Don’t miss this important tax deadline! Your 2023 federal tax return is due on April 15th, 2024. File right now if you are expecting a tax refund, so you’ll get your money sooner. Anyone who needs more time to file taxes can easily request a tax filing extension. It will give you an additional six months to file your return, but the IRS still expects their payment on time. So, is it a tax extension a good idea? Here are the pros and cons of filing a tax extension.
Pro: A tax extension is easy and automatic
Although you cannot request a tax filing extension through ezTaxReturn, getting one on your own is still pretty easy. Simply download and fill out Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. Then mail it to the IRS by April 15th. This will give you until October 15, 2024 to file your tax return. The tax extension form needs be filed before the current year tax filing due date. Please note, if you are self-employed, you must still make your first quarter estimated tax payment by April 15th.
Pro: Filing a tax extension allows extra time to track down missing forms and receipts
You cannot file an accurate tax return without having all the necessary information. If you are missing receipts or still waiting for your W-2, you better get moving. Start by contacting your employer. Ask for another copy of your W-2 form and verify the mailing address they have on file. If the business is now closed or they are being uncooperative, call the IRS at 1-800-829-1040 for a substitute copy. As you can imagine, this is a very busy time for them so please be patient. As a last resort, you can use Form 4852, Substitute for Form W-2, Wage and Tax Statement, and estimate your wages and tax withheld. If you get a copy of the missing W-2 after you have filed, you can always amend your tax return using Form 1040-X.
Pro: A tax extension helps you avoid the late filing penalty
If you file a tax extension and submit your tax return by the October 15th deadline, you will avoid the late filing penalty. Normally, if you owe the IRS and miss the tax deadline, you will be penalized 5% of your unpaid taxes for each month it’s late. Once your return is 60 days past the due date, the minimum penalty jumps to $485 or 100% of your unpaid taxes, whichever amount is lower.
Con: Even if you file an extension your payment is still due on April 15th
You may want to file a tax extension because you owe the IRS money and cannot afford to pay right now. Unfortunately, a tax extension does not give you more time to pay your amount due. As soon as you miss the April 15th deadline, you will begin accumulating penalties and interest. The penalty starts at 5% of your unpaid taxes each month it is late and can climb to 25%. The best thing to do is file on time and pay as much as you can before the tax deadline. The IRS offers several payment options to help you fulfill your obligation.
Con: Filing an extension and waiting will not make the process any easier
Putting off your taxes for a few weeks or months will not make filing any easier. There is a good chance you will just wait until the last-minute and start scrambling again. The key to a stress-free return is being organized and using tax software. Use a tax preparation checklist to track down all your tax forms, social security numbers, receipts and bank information. Then prepare and file your tax return online with ezTaxReturn. Our clear step-by-step instructions make doing your taxes fast and ez.
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
