6 warnings concerning the filing of a tax extension, according to experts
Here is what can happen when you don't get your documents by the deadline.
Although it is an annual event, the deadline for April to deposit your taxes can always find a way to sneak yourself. And even if you use a tool or Professional help hiring To make sure they have done well, you may need additional time to organize everything before sending it. But before requesting an extension of the IRS, there are a few essential things to keep in mind that could save you a little long -term sorrow. Read the rest for six warnings concerning the filing of a tax extension of financial experts.
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1 You cannot be late in filing an extension.
Most people do their best to bring their deposits into the IRS by the April deadline, if only to reduce stress. However, some may not realize that the same due date for your taxes is the same deadline that you must deposit for the extension itself.
"You must file the extension request before the tax deadline of April 15," explains Robert Farrington , founder of University investor . "If you cannot submit to the request for extension in time, you can receive an inability to produce up to 25% of your taxes."
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2 You may need to take additional measures for state taxes.
The deposit of state taxes is also part of the equation, in addition to the federalty. And depending on where you live, it could mean a little additional work if you drop an extension.
"Some states accept the federal extension without requiring additional steps or documents, but other states require taxpayers to ask for an extension directly with them," said Peggy James , a CPA and contributor for annuity.org. "Not requesting the extension in the event of a requirement could cause late deposit penalties."
3 Your extension in the file is not an extension on the payment of what you need.
Taxpayers generally obtain an extension of six months when they deposit for one. But although it may buy you time to put your documents back, it does not change the deadline to really pay the IRS.
"The main point to remember is that an extension to produce a tax return is not an extension to pay taxes due to this declaration," said Roxanne Hendrix , A accountant (CPA) and tax expert at Justanswer. "The amount due must be paid by the April deadline."
She points out that if you cannot pay the total amount of taxes due, you can set up a payment plan with the IRS at the time of the extension deposit. "However, the interests and penalties will accumulate until the balance is paid in full," she warns. AE0FCC31AE342FD3A1346EBB1F342FCB
And according to James, those who do not have enough time to estimate how much they will still have a practical option.
"My advice to customers in this situation is to use the income declaration of their previous year as a guide. If their situation has not changed significantly since then, pay the same amount they have made the previous year . Better life .
4 Taking more time to deposit means waiting for more time for your refund.
Naturally, the more time you take to get your information on the IRS, the more time it will take it to treat everything. And if you are counting on money to come back, it means you will remain on hold.
"If you were refunding and you have chosen to extend your declaration, your refund will only be issued after the declaration of the declaration," said Hendrix. "And note that the IRS will not add any accumulated interest to your delayed reimbursement, contrary to what they do at due taxes."
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5 Your extension does not cover other important deadlines.
Your annual deposit may be one of the most intimidating budgetary tasks of the year, but it is often not the only thing in the calendar. Hendrix warns that you will always be involved for other important dates of payment.
"The extension does not delay the payment of the estimated taxes either, does not give you any time to contribute to an IRA or health savings account, or extend one of the other dates of maturity of April 15", warns Hendrix. "And after the deadline, married couples cannot produce modified separate yields if they had previously produced a joint declaration."
6 You don't have to use all the time that the extension buys you.
Getting an extension is the best way to buy additional time when setting up your deposit. But experts warn that you should avoid the temptation to procrastinate the six whole months once in place.
"Keep in mind that even if you deposit an extension, that does not mean that you should wait until October to deposit your taxes," said Hendrix. "You can file an extension on April 10, then produce your declaration before the deadline of April 15 if you were able to collect all the information you need to complete your income tax return."
And, of course, there is a strong incentive not to withdraw things for too long.
"Given that late payment penalties are based on time - which means that they are increasing longer to pay - it is in your interest to prepare and produce the declaration as soon as possible rather than waiting for the deadline for October 15 ", explains James.
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