By filing a tax extension, you know that you can gain up to six months of extra time to file your tax return. But that’s not all tax extensions are good for. An effective use of tax extensions can help you avoid late fees, improve the accuracy of your return, and save on tax preparation fees just to name a few benefits. If you’re still thinking about whether or not you should file an extension during the tax season, or if you already know that you’re going to file an extension, here are some tips about using extensions to the best of your advantage.
Receive Time to File, Not to Pay
– Tax extensions will only grant you extra time to file your actual tax return. If you owe any taxes to the IRS, you are responsible for paying on time whether you’ve been approved for an extension or not. The IRS urges you to go ahead and file your return if completed, rather than filing an extension because you can’t pay. The “Failure to Pay” penalty is less harsh than the penalty for “Failure to File.” The amount of taxes you may owe is known as your estimated tax liability.
For more information about estimated taxes, check out the following blogs:
Pay the Taxes You Owe – Along with filing your tax extension, you also have various options of paying any estimated taxes at the same time. You can submit your payment through the Electronic Federal Tax Payment System (EFTPS), or with Electronic Funds Withdrawal (EFW) which requires either your checking or savings account details.
For more information about paying any tax liability, check out these blogs:
Maximize Tax Deductions – Since you have more time to prepare your tax form, why not increase your chances for a larger tax return by finding new deductions that you qualify for? Unexpected deductions can be found in the form of work-related expenses, or even moving fees. With your approved extension, it would be best to consult with a tax professional about your expenses during the tax year.
For more information about tax deductions, click on the following links:
As you can see, tax extensions can be used for a lot more than just a last minute option to avoid late filing. With ExpressExtension, you can quickly and easily e-file a tax extension within minutes and receive instant approval from the IRS. You can also pay for any tax liability with ExpressExtension through our EFW option. We even offer mobile e-filing with our FREE iOS/Android app for personal tax extensions, and our mobile site for exempt organization extensions; you don’t even have to be in front of a computer.