To get an extension without the form, you can pay all (or part) of your estimated income taxes online. YouвЂ™ll need to fill out Form 4868, then mail it or file it online using IRS e-file. ThereвЂ™s No Extra Time to Make Traditional IRA ContributionsД¬ontributions to a traditional IRA and Roth IRAs are still due by the original April deadline. While an extension will reduce your 5% monthly late filing penalty, any outstanding tax balance will still be charged a late payment penalty of 0.5% per month. The ConsДЄs I already mentioned above, an extension will give you extra time to file your return, but any tax you owe is still due by the original deadline. Filing an extension provides these taxpayers with an additional six months to do so. If youвЂ™re self-employed you may want to make contributions to your SEP IRA or SIMPLE IRA to reduce your tax liability.

It Gives the Self-Employed More Time to Make Retirement Contributions However, if you are due a refund, there are NO penalties. If you have tax due and do not make a payment until you file, you will just owe the 0.5% monthly late payment penalty. If you file an extension and then file your return by the extended deadline, youвЂ™ll avoid the 5% per month late filing penalty. The second is a late payment penalty of a 0.5% per month. The IRS imposes two types of penalties: First is a late filing penalty of 5% per month on any tax due. Having extra time to finish your return is often necessary if youвЂ™re still waiting for tax documents from employers or if you need additional time to organize your deductions.

YouвЂ™ll Have an Extra 6 Months to Gather Your Information While an extension gives you extra time to file your return, it does not give you extra time to pay your tax. You donвЂ™t have to explain why you need the extension and the extension automatically moves the filingВ deadline for personal tax returns to October 15th. Considering the tax extension deadline is just a couple days away, I thought it would be a good time to dive into everything you need to know about tax extensions! The IRS reports that as of April 15th each year, about 50 million taxpayers still need to file their taxes (!!!)вЂ¦ so if this is you each year, keep reading.ДЇiling a tax extension request asks the IRS to give you some additional time to file your tax return.

Irs 2016 tax extension form