The April 15th tax deadline may not be enough time for some of you to file your tax returns — But that’s ok! You can request for a tax extension to get some more time to organize all the necessary documents.
If you’re using TurboTax to file taxes this year, there is an option within the software to help you get it done online. When you sign in, TurboTax can resume where you left off and you can continue with your tax preparation or select from a list of options. One of them is “File an extension.”
Just click on that option (under Manage Your Return) and TurboTax will initiate the process. It shouldn’t take more than few minutes to complete, assuming you have the basic personal and tax information handy.
The first step is to provide your personal information, namely:
b. social security number
c. date of birth
d. if you file a joint return, your spouses information
Step number two, enter prior year tax information and specify the refund amount you’re expecting or a tax liability you have this year:
The last step calls for a review of the entered information and creation of a 5-digit number for you and you spouse so you can efile.
When you first log in to TurboTax and can’t locate the option to file for extension, go to the search box, and type “Can I file my IRS extension online?” Below are the results:
The first answer outlines the extension steps but the second one, the recommended answer, has a link to TurboTax Easy Extension. Once you click it, you will go through the steps outlined above.
By filing for extension you can avoid late filing fees but may be charged interest on the amount you owe the IRS. If you expect a refund and file for extension, there aren’t any financial penalties. The extension you receive is to file taxes but a payment is still due on April 15th.
There are two penalties that you can expect:
- Late payment penalty – ½ of 1% of your tax liability outstanding after April 15; it is capped at 25%.
- Late filing penalty – this penalty is typically 5% of what you owe for each month and it is also no more than 25%.