Sometimes there aren’t enough hours in the day to get things done, including your taxes.
The good news is that you can file for an extension. Just fill out form 4868, and you get six months extra time. That will make your new tax deadline October 15. But that doesn’t mean you’re off the hook.
“While you can extend the time to file your taxes, the government still does expect you to make a payment to what your estimated tax liability may be,” says tax attorney Rebecca Walser. “If you don’t make that payment, you can have a penalty and interest charges racking up for those six months.”
That means you may owe more money. To keep Uncle Sam happy, pay your taxes by the April 17 deadline. To find out how much, look at last year’s return.
“The best thing to do is to just look at your gross income and your total deductible expenses and as long as they are approximately the same, then you can calculate kind of a high level of how much of a difference between last year and this year your tax liability might be,” Walser says.
You can also use a tax software and plug in your info. Experts say the important thing is to try not to underpay the IRS.
“Beyond a ten percent grace, you’re looking at penalties and interest if you have underestimated and underpaid that tax due,” Walser says