Thinking about applying for a tax extension? There are some things to consider before you do. Although there are companies like File Later who can help you get a tax extension for six months, there are some things you need to watch out for. You can be approved in just a few minutes, but you will have to avoid these five mistakes.
Five Common Mistakes
1) Tax Extension doesn’t mean pay later
The first thing is you need to remember that a tax extension does not mean you get to pay later. Although you get six months to file your taxes, it does not give you more time to pay the taxes you’re owing. The IRS still needs you to pay it by the due date (which is April 15th). This is important because interest and late fees may incur.
2) You have to do the work to get the extension
The second thing you must remember is that in order to get the tax extension, you have to take the proper steps to get the extension—you don’t just get one automatically. You can begin by filling out your personal information, as well as your Social Security Number.
3) Don’t forget to figure out if you are going to get a refund or if you will need to pay
The next thing you need to do is to estimate if you’re going to get a tax refund, and we can help you with this by using a tax calculator. The biggest mistake you can make is assuming that you are going to get a refund without doing the calculations. If you end up having to pay, you can incur extra fees by failing to pay by the April 15 the deadline. The IRS requires you to give an estimate of the tax that you owe – and you have the option to pay none, all, or some of your estimated tax due.
Once you’ve done that, you can submit your application online and you will have to wait for the IRS to get back to you. You will hear back in about a day, and we will notify you via email if your extension was accepted by the IRS. If your extension is rejected, the IRS will accept corrections to your tax extension requests for a limited time only. If your application is rejected through FileLater’s e-filing system, you will have a chance to correct it and resubmit it at no extra charge.
Some other things to remember
4) The fourth common mistake people make when applying for tax extensions is that they think they have more than half a year. When you apply for the tax extension for six months, you cannot add more time to this extension. On the other hand, there are some cases where the IRS will give you an additional extension, but only in certain situations. Some situations where you will get an additional extension include if you are in another country or serving in the U.S. military.
One more thing you have to remember is that you generally can’t make late tax payments without late charges or interest incurring. You should do your best to calculate the amount of your taxes due, although the IRS will not reject your extension if your estimate is off.
Do not let these common mistakes deter you from filing a tax extension. You can save yourself a lot of money (and headaches) by getting an extension online.