For most people, federal income tax returns are due on Monday, April 18 (they’re due April 19 for people who live in Maine and Massachusetts). However, if you can’t submit your return before the upcoming deadline, you need to request a tax filing extension instead. The extension is automatic – you don’t even need a reason for putting off your tax return – but you still have to ask for it. Once you do that, you won’t have to file your 2021 federal tax return until October 17, 2022.
You still have to pay any taxes due, though. The extension is just for filing your return…not for paying what you owe. So, estimate how much tax you’ll owe (if any) when you do file your return and pay that amount now. But make sure you don’t estimate too low, because the IRS will charge you interest if you’re short. Penalties might be tacked on, too. When you file your 2021 tax return later (before October 17), you can subtract the amount you pay now from the overall tax due as shown on the return.
You can request an extension by filing Form 4868 or by making an electronic tax payment to the IRS. Either way, you need to act before your federal income tax return filing deadline (April 18, or April 19 for residents of Maine and Massachusetts).
Special tax extension rules apply for Americans living abroad and people serving (or who served) in a combat zone or contingency operation. As a result, they might not have to file their 2021 tax return and pay whatever tax they are expected to owe by April 18, and they could receive an extension past October 17. Victims of certain recent natural disasters also get more time to file their 2021 federal tax return and pay their tax bill. They can also wait until their new tax return filing deadline to request an extension to October 17.
And don’t forget about your state tax return. Although state tax filing extension rules and deadlines are often similar to the federal requirements, you need to check with the tax agency in your state to see exactly how tax return filing and payment extensions work where you live.
For more detailed information about tax extensions and how to request them, see How to Get More Time to File Your Tax Return.
Source: kiplinger.com