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Tax Extension 2023: What It Is, How to File It

Tax Extension 2023 [Photo: Depositphotos]
Tax Extension 2023 [Photo: Depositphotos]

In layman’s terms, a tax extension gives a tax filer an extra time to file their tax returns. In this article, read and find out more about tax extension and how to file it!

Tax Extension 2023 [Photo: H&R Block]

Tax Extension 2023 [Photo: H&R Block]

A tax extension gives a tax filer an additional six months to file their tax returns to the Internal Revenue Service (IRS). This means that instead of filing the tax returns on or before the usual deadline of April 15, the tax extension will give the tax filer until October 15 to do so. However, the Tax Extension 2023 will be a bit different from the past years due to the weekends and holidays. This means that instead of the extension deadline being on October 15, it will be on October 16. Same goes for the Tax Day on April 18 instead of April 15.

An article on the Ramsey Solutions website states that the Tax Extension 2023, however, does not mean that the payment for tax liabilities will also be extended. The taxes must still be paid on Tax Day on April 18. If a taxpayer fails to pay their taxes on deadline, interest and late payment penalties will be applied. This means that 0.5% to 25% of a taxpayer’s tax bill can be collected each month. Nonetheless, the Tax Extension 2023 may help reduce the late payment penalties.

READ ALSO: Tax Return 2023: Deadline Of Filing Extended In 3 U.S. States, Here’s Why

How to File the Tax Extension 2023

According to Folger, to file the Tax Extension 2023, a tax filer must fill out the Form 4868. The form contains parts where a tax filer must input their name, address, and Social Security number. Tax liabilities must also be estimated and federal taxes must be looked up in the Form W-2. If a taxpayer does not owe any taxes, they do not need to file a tax extension. However, the taxpayer will be missing out on tax refunds.

READ ALSO: Tax Return 2023: Penalties In Place If You Fail To File Your Taxes On Time

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