The long-awaited federal tax extension is about to come into effect this month. If you have income taxes due this year, chances are good that the IRS has already contacted you about an extension. The federal tax extension is available through October 15th for most taxpayers. This extension allows you to pay your taxes without penalty until December 15th.
The federal tax extension affects everyone who files a tax return. This extension provides taxpayers with an extra six months to file their returns. The extension is not retroactive, which means that you can’t use it to extend the time you already have to file. The extension also doesn’t apply to taxes owed for prior years. If you are expecting a refund, the extension may delay your refund check by a few weeks.
If you are eligible for the Federal Tax Extension, you should go ahead and file your return as soon as possible. The earliest deadline for filing is October 15th. If you don’t file by this date, you will likely have to pay penalties and interest on any taxes that are due after that date.
If you are not eligible for the Federal Tax Extension or if you do not want to participate, there is still something you can do to prepare for what could be a major tax bill this year. Review your individual and family tax situations to see where any changes might apply and plan ahead accordingly. Also keep in mind that while the extension is pending, Congress may still decide to make other changes to the tax code that could impact your finances.
According to the IRS, the main benefit of the Federal Tax Extension is that it will allow taxpayers who are in alignment with the new tax law to file their taxes early. This will help to minimize any potential penalties that may be associated with filing late. Additionally, this extension will also provide some tax relief for low-income families and individuals who may not have received a large bonus or paycheck from their employer in December.