In the lead up to Tax Day on April 15, taxpayers may find themselves in need of filing a tax extension, especially if they use an accountant to prepare their taxes. Filing an extension can help alleviate any potential delays caused by an overwhelmed tax preparer. Tax software can assist in filing an extension, as can submitting IRS Form 4868 by mail with a postmark before the deadline. It is important to note that filing an extension does not delay any taxes that are owed to the IRS. Interest will accumulate on any unpaid taxes, along with potential penalties, if they are not paid in full by the deadline.
To file a tax extension, taxpayers must submit Form 4868 to the IRS either electronically or by mail before the April 15 deadline. If taxes are owed, estimated income tax must be paid using Direct Pay, the Electronic Federal Tax Payment System, or a debit or credit card. Failure to pay estimated taxes with an extension can result in accrued interest and potential penalties. In some cases, certain taxpayers are granted more time to file, such as military personnel serving in a combat zone or individuals in federally declared disaster areas. The deadline for US citizens living abroad to file their taxes is extended to June 17.
Child tax credit money related to 2023 tax returns can provide additional refund opportunities for taxpayers who welcomed a new child or gained a dependent in the tax year. Filing taxes by the deadline is crucial to maximize potential refunds, with some taxpayers eligible to receive up to $2,000 per child. The child care tax credit remains the same as 2019 levels, offering refunds for expenses related to child care or dependent care. By filing an extension, taxpayers may experience delays in receiving their income tax refunds, which can take months to process, depending on the complexity of the return.
Taxpayers have various options when it comes to filing their 2023 tax returns, including online, by phone, or with the mobile IRS2Go app. Income tax payments can be scheduled and made electronically using IRS-approved free filing services for those earning $79,000 or less. The IRS recommends electronic payments and direct deposit to ensure a faster refund process. Accessing your IRS account online allows you to review tax-related details, such as address information, payment plans, stimulus payments, child tax credit amounts, and tax transcripts. The IRS Interactive Tax Assistant can provide additional guidance for taxpayers.
In conclusion, filing a tax extension may be necessary for some taxpayers to allow for more time to prepare and submit their returns. It is important to pay estimated taxes when filing an extension to avoid interest and penalties on any owed taxes. Maximizing potential refunds, such as child tax credits and child care expenses, requires filing taxes by the deadline. Utilizing IRS-approved free filing services and making electronic payments can streamline the tax filing process and ensure a quicker refund. Accessing your IRS account online can provide valuable information and assistance for managing your tax obligations.
