Can you file for an extension through turbotax
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OVERVIEW The Internal Revenue Service allows taxpayers to file for an extension if they need more time to prepare their tax return. You can obtain a tax extension for any reason; the IRS grants them automatically as long as you complete the proper form on time. Check your state tax laws; some states accept IRS extensions while others require you to file a separate state extension form. For information on the third coronavirus relief package, please visit our “American Rescue Plan: What Does it Mean for You and a Third Stimulus Check” blog post.
Since 1955, "Tax Day" in the United States has been April 15, or the next business day if it falls on a weekend or holiday. Despite the fact that taxes are essentially due on the same day every year, many people still find themselves scrambling on the day before to get their records together. Fortunately, the Internal Revenue Service allows taxpayers to file for a extension to October 15 if they need more time to prepare their tax return. You can obtain an extension for any reason; the IRS grants them automatically as long as you complete the proper form on time. Check your state tax laws; some states accept IRS extensions while others require you to file a separate state extension form.
Filing a tax extension is free, easy and automatic: Just submit Form 4868 electronically or on paper by the filing deadline. TurboTax Easy Extension makes it easy. Not only will you extend the filing deadline until October 15, you'll relieve the stress that often accompanies trying to pull everything together by tax time. More time and less stress means you'll be able to thoroughly review your return and ensure you're taking advantage of all the tax benefits available to you. You'll also avoid failure-to-file penalties, which can add up to 25% of the tax due. If you file an extension but miss the extended deadline, you will be subject to this penalty. Keep in mind that filing an extension when you owe taxes only gives you more time to file, not more time to pay—your payment is still due at the tax filing deadline. An extension will allow you to take advantage of retroactive changes to the tax law that might be made after the filing deadline, without the added time and expense of filing an amendment. Additionally, some tax professionals theorize that filing an extension will decrease your odds of being audited, since IRS auditors must meet quotas and try to do so early in the year. While the IRS does not disclose its process for selecting returns for audit, the earlier a return is filed, the longer it is in the system and thus subject to a review.
You can't file an accurate return if you don't have all the information you need, or if what you have is incorrect. It's not unusual for some information returns, such as a Schedule K-1 or Form 1099, to arrive too late to allow you to complete your tax return by the filing deadline. The IRS does impose deadlines for filing information returns, but extensions are frequently granted. These extensions can usually be for 30 days or six months, depending on the return. Financial institutions and investment companies typically send 1099s to their customers to report interest, dividends, capital gains and sale proceeds. These returns often need correction, especially if they are based on information from multiple investments. "Sometimes if a company knows they are going to be correcting 1099s," notes Martin Cole, a tax educator and former accountant, "they will send a notice to let clients know a change is coming."
With electronic filing of income tax returns and the ability to obtain electronic copies of many tax forms, taxpayers who are out of town during tax season can often get their return completed and filed by the filing deadline. If you still need some paper information, however, or aren't comfortable with electronic filing, a tax-time vacation may compromise your ability to meet the filing deadline. "Our practice had a lot of 'snowbird' retired clients who traveled to the southern states for six months of the year," says Cole. Since the clients were expecting refunds, they would file an extension and complete their tax returns when they headed back up north in the spring.
"Sometimes," says Cole, "you just run out of time." People get busy and keep telling themselves they'll get to their taxes later, and soon enough it's Tax Day Eve and there's just no way you'll get your return done on time. Tax preparers get busy, too, and many will automatically file for an extension for clients who bring their information in within a week or two of the deadline. Dealing with a major life event could also cause you to miss the tax deadline. The loss of a loved one, moving, marriage or divorce can take up your time and your energy. Filing an extension will let you deal with your situation when you need to, without having to worry about preparing and filing your tax return.
Many people file for an extension because they owe taxes and are unable to pay them. "Inability to pay is the worst reason to file an extension," warns Cole. An extension gives you extra time to file, but not extra time to pay. After you file an extension, if you owe taxes when you file your return, you might also have to pay penalties and interest on the tax due. If you file an extension for other reasons, you must determine as best you can whether you'll owe money or get a refund; if you expect to owe money, you should pay that amount with your extension. Use a tax estimator like TaxCaster to estimate how much you may or may not owe. Instead of requesting an extension when you can't pay your tax due, the IRS offers some payment alternatives. You can request a short extension to pay, of 60 to 120 days; you will still pay penalties and interest, but at a lower rate. The IRS also offers installment agreements for taxpayers who can't pay their taxes when they are due. An installment agreement lets you pay a set amount per month until the tax is paid. Finally, the IRS suggests you consider paying your tax due with a credit card or loan. In many cases the interest on these accounts will be lower than the combined penalties and fees you'll pay the IRS. Remember, with TurboTax, we'll ask you simple questions about your life and help you fill out all the right tax forms. With TurboTax you can be confident your taxes are done right, from simple to complex tax returns, no matter what your situation.
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Updated for Tax Year 2021 • August 16, 2022 04:16 PM
For information on the third coronavirus relief package, please visit our “American Rescue Plan: What Does it Mean for You and a Third Stimulus Check” blog post. Business extensionsIf you need more time to complete your 2021 business tax return, you can request an extension of time to file your return. However, even with an extension, you need to estimate how much you owe (if you owe) and send in that amount by the due date. Most business tax returns can be extended by filing Form 7004: Application for Automatic Extension of Time to File by the original due date of the return.
If your business is organized as an S corporation, the income tax return or extension is due by the 15th day of the 3rd month after the end of your tax year. If the business is a C corporation then the extension is due by the 15th day of the 4th month after the end of your tax year. For example, if your C corporation is a calendar year taxpayer with a December 31 year end, you must file a 2021 tax return or extension request by April 18, 2022.
If your business is organized as a partnership, your income tax return or extension is due by the 15th day of the 3rd month after the end of your tax year. For example, if your partnership is a calendar year taxpayer, with a December 31 year end, you must file a 2021 tax return or extension request by March 15, 2022.
The IRS may hit your business with costly penalty and interest charges if you underestimate your taxes, file your return late, or do not furnish certain information by the due date. The dates above assume your business entity is a calendar year taxpayer. In the event you are a fiscal year taxpayer, please adjust your due dates based on the information provided above. For example, the due date for the tax return of a corporation for the fiscal year ending March 31, 2021 is July 15, 2021. An exception to this - corporations with a fiscal year from July 1 to June 30, the initial deadline will remain September 15th (15th day of the 3rd month following the end of the fiscal year) and the extension deadline remains February 15 (five months after the first deadline). This exception applies for fiscal years ending through June 30, 2026. With fiscal years ending June 30, 2027, the filing deadline moves to October 15th (the 15th day of the 4th month following the end of the fiscal year) and the extended deadline moves to March 15th (six months after the first deadline).
If your business has always been an S corporation, it is effectively treated as an extension of the shareholders for many tax purposes and will generally not owe any tax itself. However, if your S corporation was once a C corporation, it may owe a corporate-level tax in certain limited situations. An S corporation must provide a Schedule K-1 to all shareholders, detailing their share of the corporation's income and deductions for the tax year.
Like an S corporation, a partnership does not owe tax itself, but is generally treated as an extension of the partners. Partnerships must provide a Schedule K-1 to all partners, detailing their share of the partnership's income and deductions for the year.
State guidelines for filing extensions vary. In many cases, unless you owe state taxes, your federal automatic extension can be used to extend your state return(s) as well. Refer to the tax form instructions or tax help for your state(s) before you request a state extension. TurboTax Self-Employed will ask you simple questions about your life and help you fill out all the right forms. Perfect for independent contractors and small businesses. We’ll search over 500 tax deductions to get you every dollar you deserve and help you uncover industry-specific deductions.
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