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Posted by Dennis Jao

What You Need to Know About 2022 Tax Extensions

What You Need to Know About 2022 Tax Extensions

The federal income tax deadline was April 18, 2022. If you need some more time, you can get an income tax extension by filing IRS Form 4868. This gives you until October 17, 2022, to file your tax return, if you had sent it in time.

Here are some of the dos and don'ts when it comes to tax extensions.

How do I file a tax extension?

A tax extension can be gotten electronically or by mail. You must request an extension to avoid an IRS late filing penalty.

Consider the free IRS file if you don't plan to use tax software or haven't decided which software to use. The IRS is partnering with a nonprofit organization called the Free File Alliance to give people earning less than $73,000 in adjusted gross income access to free branded tax preparation software. Anyone, even those over the income limit, can go there to apply for an extension online.

If you plan to use tax software, make sure your provider accepts Form 4868 for tax extensions. You can simply follow the program instructions and see how to file an electronic tax extension this way. The IRS will send you an electronic receipt when you submit the form.

You can also request for a tax extension by filling out a paper form 4868 and mailing it in but ensure to get proof that you mailed it.

What is the duration of a tax extension?

A tax extension provides you with more time until October 17, 2022, to file your tax return.

However, getting an extension doesn't give you more time to pay, just more time to file your returns. If you cannot file your tax return by the due date, you should calculate your tax return and pay as much as possible at that time.

  • Any debt after the deadline is subject to interest and a late payment penalty, even if you are granted an extension.

  • You may qualify for a late payment penalty waiver if you have paid at least 90% of your actual tax liability and pay the remainder with your tax return by the due date.

Tax extensions for foreign and military taxpayers

Some people don't necessarily have to worry about applying for tax extensions.

  • Suppose you are a US citizen or a resident who lived and worked outside the United States on your tax return expiration date. In that case, you can automatically get two additional months to file your tax return and pay taxes amounts you owe without requesting a tax extension.

  • People affected by certain natural disasters may also automatically have more time (time varies).

  • Some soldiers automatically receive extra time, depending on where and what they are doing.

Don't forget to file your return by the October Deadline.

Asking for an extension and making an estimated payment is only half the job. You still need to file the final return. Failure to file by the October 17 extension deadline could increase penalties.



Dennis Jao
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