Step By Step Instruction For Extension On Your Taxes
So, April 15th is closing in fast... and you haven't, or can't, complete your tax forms. It happens to some of us, and it's understandable. Filing for a tax extension can be your answer, but don't think it gets you out of paying. The extension does only cover the paperwork. You still need to pay what you owe by April 15th!
Here's a detailed step-by-step to file for your extension and ensure that you've got yourself covered.
1. You need to know if you're going to owe more taxes this year, so figure that out first. You can file the extension, but without paying the taxes owed, it's going to do you no good!
2. Pick up a copy of Form 4868. You can usually print one off online, or pick it up at your local library.
3. Fill in your name and SSN on the form. If you're filing jointly, put their information on there as well!
4. Line 4 is where your calculated tax due from your taxable income goes. The IRS doesn't appreciate a frivolous estimate, so make sure you really do your homework with this one.
5. On line 5, you're going to have to figure out how much federal tax you had withheld from your paychecks, and put that amount there, along with any other amount you paid in estimated taxes for the year.
6. Pull out a piece of paper and subtract line 5 from line 4. If you should be getting a refund, just put '0' on line 6. If you're not, put what tax is due to the IRS on line 6 and 9.
7. On line 10, you need to put how much of what you owe them you're actually sending them. While I, and they, understand you may not be able to pay 100% of it right now, you need to send as much as possible.
8. Place the bottom of the page (There should be an area to indicate where to separate) and mail it to the IRS center where you would normally send in your tax return. With this, make sure to enclose a check or money order to the U.S. Treasury for what you're paying them! Put your SSN, the tax year, and the words 'Form 4868' on the money order or check as well.
9. Mail it! The step some people forget is to mail the actual letter. Make sure it's post marked April 15th or earlier, because you're going to have some problems if it's not.
A Second Extension?
Sometimes April 15th closes in on you, and you can't get your tax returns together. What you can do in this situation is file a request for an extension to file your taxes. Confusing, right? It's the government, they like it that way.
The IRS isn't going to automatically hand you this, though. You need to show the following in order to achieve a second extension:
A. The reason for the extension
B. The tax year you're dealing with
C. The tax return that you need an extension on
D. The length of time you need for this extension
And finally,
E. If another extension has already been granted for that tax year.
If you provide the information, the IRS should grant you the extension of time to file, usually it's a two month period.
Grab form 2688, which the form needed to make it all happen.
by: Inessa Khaykin
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