As a whole 2020 has been a year like no other. Every part of our lives have changed or been affected in some way due to the COVID-19 pandemic. This has caused stress for many individuals and businesses over the course of the year, especially financial stress.
The IRS understands that many individuals have been heavily impacted by the pandemic and have provided an automatic extension for “tax day”. Rather than being due on April 15, 2021, the deadline to file personal income tax returns has been extended about a month.
Filing an extension is a great option if you need some extra time to complete your tax return. Before you begin filing, here is what you need to know about filing a personal income tax extension for the 2020 tax year.
When is the deadline for filing a personal tax extension?
The IRS has extended the deadline to file personal income tax returns and make tax payments until May 17, 2021. This provides a welcome reprieve for taxpayers who need additional time to file and the IRS itself as they continue to handle the distribution of stimulus payments to Americans.
Some states that have been affected by major winter storms have an automatic extension until June 15, 2021. To learn more, check out this blog post.
Which Extension Form am I required to File?
If you are requesting an extension for the following forms, you should file a Form 4868 extension. The Form 4868 applies to the following forms:
About Form 4868
The Form 4868 applies to personal income taxes. Everyone who files a personal income tax return can file this extension to request additional time from the IRS.
Generally, this form extends the filing deadline for an additional six months. Given that the IRS has already provided an extended deadline for personal income tax returns, the extension will now provide you with a five month extension.
So, if you file a Form 4868 for your personal income taxes, your deadline to file will likely be extended to October 15, 2021.
This is an automatic extension, this means that you don’t have to worry about providing any explanation to the IRS in order to file. Just complete the form correctly and the IRS will approve your extension.
What about my Tax Payment?
One of the most common misconceptions about filing a personal income tax extension is that the extension applies to your IRS tax payment. This is not true, while there are many benefits to filing Form 4868, extending your balance due to the IRS is not included. However, ExpressExtension offers an easy solution for e-filing your extension and making your tax payment to the IRS.
Why Should I E-file my Extension?
There are many benefits to e-filing your IRS tax extension rather than mailing in a paper copy to the IRS. Foremost is the fact that this is the IRS preferred method. The IRS is able to process electronically filed forms at a faster rate than paper forms. Additionally, electronic filing eliminates the errors that often go unchecked when paper filing.
When you choose ExpressExtension as your IRS authorized e-file provider, you can complete your extension in minutes and receive instant IRS updates.