If you need more time to file your tax return 2018, your best bet for avoiding IRS penalties is to file a tax extension. However, today is the last day to file taxes 2018
and request an extension. Here is how to apply for a tax extension before it is too late.
It’s Tax Day 2018! How To Apply For a Tax Extension?
Despite the reason for needing additional time, the IRS will automatically grant you a six-month extension of time to file your federal tax return. Also, the application process is quick, easy, and you will likely receive approval within the hour.
What Do You Need To Know Before Filing a Tax Extension?
Any taxpayers can file tax extension Form 4868 and receive an automatic federal tax extension for filing their federal income tax return. However, you are expected and obligated to pay any owed taxes by Tax Day 2018 (TODAY.)
If you are unable to make your tax payment, you will need to pay penalties and interest. It is highly recommended that you pay as much of the owed taxes as possible to lower your penalty cost.
Keep in mind that the IRS penalty for failing to file your federal income tax return is significantly higher than the penalty for not paying your taxes.
Form 4868 will not extend the payment deadline for your 2018 tax return.
Income Tax Filing Penalties
- Late Tax Payment:
- 0.5% of the taxes owed each month it remains unpaid. (Penalty maximum 25%)
- Late Tax Filing:
- 5% of the taxes owed each month your return is late. (Penalty maximum 25%)
- Minimum penalty amount after 90 days is the smaller of $100 or 100 percent of your owed tax amount.
- Combination Penalties:
- The failure-to-file penalty minus the failure-to-pay penalty.
- Minimum penalty amount after 90 days is the smaller of $130 or 100% of the unpaid tax.
How to Request a Tax Extension?
Step 1: Calculate Estimated Taxes Owed
You will need to estimate the amount of taxes you owe for the previous year. You can do this by simply subtracting the total tax amount withheld from your paycheck and your estimated tax payment from the tax amount you owe to the IRS.
Before you estimate your liability amount be sure to reduce your income by all applicable exemptions and deductions.
Use the 2017 tax tables to estimate the amount you owe on your tax return. If you do not pay the full amount you may owe interest and penalties.
Step 2: Create Your ExpressExtension Account
Create your free account and click “Create Personal Tax Extension” from your account Dashboard. At this point, you can pay any owed income taxes; if you are expecting a tax refund, you will mark the amount as zero.
The Form 4868 process is very straightforward and requires minimal information. However, we will guide you through step-by-step to ensure your form is filed correctly the first time.
You will need the following income tax information:
- Social Security Number
Step 3: File Tax Extension 2018
Once you have completed and reviewed your Form 4868, you can file a tax extension 2018 directly with the IRS. When the IRS accepts your form, you will be notified immediately via email.
Please keep in mind that while Form 4868 does provide you with an extension of time to file you are still required to pay at least 90 percent of your owed taxes.
55 total views, 5 views today