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The annual tax deadline is upon us. For those facing the Tuesday, April 15th deadline for US income taxes and feeling overwhelmed, there’s no need to panic. Taxpayers can request a free tax extension from the IRS, providing an additional six months to finalize their 2024 tax returns. This tax extension offers crucial breathing room for individuals needing more time to accurately file taxes.
Obtaining a tax extension is straightforward and free of penalties. Most tax preparation software facilitates this process within minutes. However, it’s vital to understand key aspects before choosing to postpone tax filing for six months.
This article details how to secure a tax extension for the 2025 tax season and clarifies its implications for both tax refunds and outstanding tax liabilities.
What is the Income Tax Extension Request Deadline?
Similar to the tax return submission deadline, the deadline to request a tax extension also falls on 11:59 p.m. Tuesday, April 15th, in your respective time zone. It’s crucial to note that this date mirrors the standard tax filing deadline.
Filing for a Tax Extension in 2025: A Comprehensive Guide
Taxpayers seeking a tax extension this year must submit Form 4868 to the IRS. This can be done either via mail or electronically through e-file before the April 15th deadline. Extensions are typically granted if electronic submissions are time-stamped by midnight tonight, or if mailed requests are postmarked by the same date.
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However, if you anticipate owing taxes, it’s imperative to pay your estimated income tax obligations when filing for an extension. Payments can be made through Direct Pay, the Electronic Federal Tax Payment System, or via debit or credit card. Failure to remit estimated taxes with your extension can result in interest accrual on the unpaid amount and potential penalties upon final filing.
Certain taxpayer groups receive automatic filing extensions. This encompasses military personnel serving in combat zones and individuals residing in federally declared disaster areas. Furthermore, U.S. citizens living abroad are granted until June 17th to submit their returns.
Does a Tax Extension Postpone Tax Payments?
No, obtaining a filing extension does not extend the deadline for tax payments. The IRS mandates that taxpayers estimate and pay at least 90% of their total tax liability by the original tax deadline to avoid penalties. Non-compliance leads to accrued interest on the outstanding balance, alongside potential penalties, in addition to the income taxes due.
The penalty for late payment typically amounts to 0.5% of the unpaid tax each month or part month, reaching a maximum of 25%. The IRS may also impose a late-filing penalty of 5% of the owed amount for each month or partial month the tax return is overdue. For returns filed over 60 days past the due date, the minimum late-filing penalty is either $450 or 100% of the unpaid tax, whichever is lower.
For individual taxpayers, penalties and interest continue to accumulate until the full balance is settled. For detailed information on penalties or to establish a payment plan with the IRS, refer to their official website.
The Child Tax Credit significantly benefits parents, reducing their annual tax burden based on the number of eligible dependents. Welcoming a new child or gaining a dependent not previously known to the IRS can potentially decrease owed taxes and increase potential tax refunds.
The Child Tax Credit provides families with up to $2,000 per qualifying child under 17 years of age, contingent upon meeting specific income criteria. However, this credit is nonrefundable, meaning it can only reduce tax liability to zero. Any credit exceeding the owed taxes will not be issued as a refund.
Failing to file taxes by the deadline could result in missing out on up to $2,000 per eligible child.
The IRS recommends electronic filing and direct deposit for faster refund processing.
Will a Tax Extension Cause Delays in Your Tax Refund?
Yes, filing a tax extension will generally affect the timeline for receiving your income tax refund, as the refund processing is contingent on the filing date. While an extension grants until October 15th to submit your return, there’s no requirement to wait until this extended deadline to file.
Processing times for some tax refunds, especially those involving complex returns or requiring corrections, may extend to several months. The IRS advises taxpayers to file electronically and double-check all information before submission to minimize errors that could prolong refund processing. Furthermore, opting for direct deposit is recommended for expediting refund receipt.
Multiple Options for Filing Your 2024 Tax Return
The IRS offers various convenient methods for taxpayers to file taxes and schedule federal tax payments, including online platforms, telephone services, and the IRS2Go mobile application.
For those needing tax software and with an income of $84,000 or less in 2024, IRS-approved free filing services are readily available. Essential information required includes income statements (W-2s or 1099s), income adjustments, filing status (single, married filing jointly, etc.), and dependent details. Taxpayers with incomes exceeding $84,000 can utilize Free File Fillable Forms.
Regarding tax payments, the IRS encourages electronic methods. Options include IRS Direct Pay, directly linked to checking or savings accounts; credit card payments through the IRS2Go app; or the Electronic Federal Tax Payment System.
Watch this: How to File Your Taxes for Free
Reviewing Your IRS Tax Account Online: A Step-by-Step Guide
Accessing your IRS account online provides a simple way to review tax-related information, encompassing address details and payment plan specifics. According to the IRS, taxpayers can leverage their online accounts to access adjusted gross income figures, track stimulus payment and Child Tax Credit amounts, and examine estimated tax payments or credits. Obtaining a tax transcript online furnishes all necessary records for addressing tax issues or payment discrepancies.
For additional assistance, the IRS Interactive Tax Assistant is a valuable resource. Further tax guidance can be found in FASTNET’s tax cheat sheet and a compilation of crucial deadlines for the current tax season.