Take a second and picture your self taking a pleasant, lengthy stroll at your favourite park on a stunning spring day in April. The solar is shining, the birds are singing, the flowers are blooming . . . all the things is good.
After which it hits you. It’s not simply any day in April. It’s April 15. It’s Tax Day. And also you haven’t filed your tax return but. Identical to that, your peaceable stroll within the park is reduce brief as you run to your automotive and rush residence to do your taxes earlier than the clock strikes midnight.
However earlier than you go into full-on panic mode, keep in mind that the IRS permits taxpayers to file for a tax extension that postpones your deadline to file by six months.
So, should you’re overseas, lacking a tax type, or coping with incorrect info on a type you obtained—or if Tax Day simply snuck up on you (we’ve all been there)—a tax extension can provide you some much-needed respiration room. And it may assist you to keep away from late-filing penalties and curiosity.
Submitting a Tax Extension With Ramsey SmartTax
If you happen to’re submitting your tax return with our easy-to-use tax software program Ramsey SmartTax, we make it tremendous simple to file a tax extension so you possibly can chill out, get all the things so as, and file once you’re prepared.
It’s essential to recollect, although, {that a} tax extension pushes again your deadline to file however not your deadline to pay no matter taxes you owe. That’s proper—the IRS nonetheless expects you to pay your tax invoice by Tax Day (which normally falls on April 15). If you happen to don’t pay your tax invoice on time, you’ll face penalties and extra curiosity on the unpaid quantity.
What should you’re owed a tax refund? Excellent news! You gained’t be charged a failure-to-file or failure-to-pay penalty as a result of these penalties solely apply should you owe taxes. However you should preserve these three issues in thoughts:
- First, you won’t know should you’ll get a tax invoice or get a tax refund till you file your return. Further sources of revenue or adjustments to your tax state of affairs would possibly result in a “tax shock” should you’re not up to the mark.
- Second, you would possibly dwell in a state that fees a late-filing penalty even should you’re owed a refund. For instance, Wisconsin fees a flat $50 late-filing payment should you miss the deadline—refund or not.1
- And at last, you gained’t get your refund till you file your tax return. The longer you place off submitting your tax return, the longer you’ll have to attend to get again the cash that’s rightfully yours.
So, even should you do count on to get a refund this 12 months, it nonetheless is perhaps a good suggestion to file a tax extension. Don’t fear—Ramsey SmartTax makes it simple!
Right here’s the best way to file a tax extension (totally free!) with Ramsey SmartTax in 5 easy steps.
1. Create an account or log in to Ramsey SmartTax.
If you happen to haven’t created an account with Ramsey SmartTax, what are you ready for? You possibly can create an account and get your tax extension in only a few minutes.
Don’t accept tax software program with hidden charges or agendas. Use one which’s in your facet—Ramsey SmartTax.
Have already got an account? Welcome again! Merely log in along with your username and password and get began. Hurry—there’s no time to waste!
2. Fill out your private info.
When you’re logged in and able to get began, Ramsey SmartTax will ask you to fill out private info for your self, your partner (should you’re submitting collectively), and any qualifying dependents you’re claiming in your tax return this 12 months.
When that’s finished, you’re able to get on along with your tax extension.
3. Discover the tax type for submitting a tax extension (Kind 4868).
Kind 4868 is the tax type you’ll use to use for an computerized extension of time to file your particular person revenue tax return (what number of tax types does the IRS have, anyway?).2
Right here’s the best way to discover the shape on Ramsey SmartTax:
- Choose Federal on the principle menu.
- Then choose Miscellaneous Varieties.
- Lastly, choose Utility for Automated Extension of Time to File (Kind 4868).
4. Fill out the applying for a tax extension.
We’ve already stated this as soon as, but it surely’s value saying it once more so that you don’t overlook: Submitting a tax extension provides you a further six months to file your return however not further time to pay your tax invoice (in case you have one).
That’s why, when you get to the Kind 4868 web page on Ramsey SmartTax, you’ll have a chance to pay your tax invoice once you submit your tax extension request. Right here’s the data you’ll be requested to offer in your extension request type:
- Estimated tax legal responsibility: That is an estimate of the full quantity of taxes you owe to the federal authorities. Make your estimate as correct as you possibly can with the data you have got. If the IRS takes a glance and says the estimate wasn’t cheap, your extension might get rejected later. (However don’t stress out—we may also help you determine how a lot you owe in taxes for the 12 months.)
- Quantity beforehand paid for present tax 12 months: That is the full quantity of any taxes you’ve already paid all through the tax 12 months, together with quarterly estimated funds and tax withholding.
- Quantity paid with extension: That is the quantity you’re going to pay to the IRS once you file your tax extension request.
When you’ve crammed out that info, you possibly can choose Go to Extension Cost close to the underside of the web page and enter your cost info. You possibly can pay your revenue taxes immediately out of your checking account with digital withdrawal or by mailing a verify to the IRS.
5. File your tax extension electronically.
After you’ve accomplished Kind 4868, you’re able to file it electronically with Ramsey SmartTax, identical to you’ll with a daily tax return. And that’s it—you’re finished!
Remember the fact that you should file your tax extension by the due date of your tax return. For 2024 tax returns, the deadline is April 15, 2025, for many taxpayers.3