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Retire Early
Lifestyle
Retirement; like your parents, but way cooler
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In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience. |
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5 Steps to
Request for More Time to File Your Taxes
Robert Claret
Tax
season comes around like clockwork, and while meeting the filing deadline is
crucial, life sometimes gets in the way. If finding time to organize your
financial documents feels a bit tight, requesting more time to file your taxes
might be the perfect solution to avoid penalties and unnecessary stress.
Here’s a comprehensive guide to making that happen seamlessly.
How to Complete Form 4868
The
IRS Form 4868, known as the Application for Automatic Extension of Time To File
U.S. Individual Income Tax Return, is your golden ticket to securing an
extension. Filling it out is simpler than you might think, and there are
multiple ways to submit it.
Personal Information
Start with your basic details such as name, address, and Social Security Number
(SSN). For jointly filed tax returns, include your spouse’s SSN as well.
Estimate Your Tax Liability
This section asks for an estimate of your total income tax liability. Be
diligent here, as your estimate plays a role in determining any further payments
due.
Note Payments Made
Enter the amount of tax you’ve already paid this year, whether through
withholding or estimated payments.
Payment Submission
If
there’s a balance due, making a payment while submitting Form 4868 ensures you
don’t get hit with late payment penalties down the road.
Choose Your Submission Method
You
can send Form 4868 electronically through tax preparation software or by
traditional mail. Many find the electronic route more convenient and faster.
Submitting this form provides you with an automatic six-month extension, giving
you until mid-October to complete your return.
Keep an Eye on Deadlines
While an extension buys you extra time to file, it’s important to track all
relevant deadlines. The original deadline to file your taxes typically falls in
mid-April. To avoid misunderstandings, submit your
tax deadline extension
request on or before Tax Day.
Once the extension is approved, plan to have your completed return ready no
later than mid-October. It’s wise to mark these dates on your calendar to avoid
unnecessary panic as they approach. Requesting an extension and using tools like
TurboTax can be invaluable for creating a smoother tax experience.
Don’t Forget to Pay
Here’s a common misconception to clear up right now. While filing an extension
gives you more time to prepare your tax return, it does not grant you extra time
to pay taxes owed. Any unpaid balance after the April deadline can accumulate
interest and penalties, even if you successfully file for an extension.
Here’s how to estimate and
pay what you owe to avoid these fees:
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Use records of your earnings,
deductions, and withholdings to
calculate your tax balance.
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If you’re unsure, lean on IRS
payment tools or consult professional resources to make an informed
estimate.
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Submit any payments to cover
what you owe by April to prevent financial penalties.
Set Up Reminders and Automate
Taking steps now can make next year’s filing much smoother. Consider setting up
reminders for important tax deadlines so critical dates don’t sneak up on you.
Additionally, many taxpayers find that automating their quarterly tax payments
or organizing their financial paperwork throughout the year saves significant
time during tax season. Building these productive habits can lessen the stress
of needing extensions in the future.
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About the Authors
Retire
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
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