How to apply for tax deferral (2023)

If you need more time to prepare your tax return—whether you're busy with school, family emergencies, or just disorganized—you can applySix-month application extensionthrough toInternal Revenue Service (IRS).There are deadlines for applying for an extension, but applying for an extension is not complicated. However, even if you get an extension to file, you still have to pay your taxes on time.

Here's what you need to know about filing for tax deferral, from dates and forms to special rules.

key points

  • You can apply for a tax deferment electronically or by mailing a paper form.
  • Tax deferrals are usually six months.
  • Any overpayment will be refunded when you file your tax return.
  • An extension of the application deadline will not extend your payment deadline.
  • Securing the extension will give you until October 16, 2023 to file your 2022 tax return instead of April 18, 2023.

Application for Tax Deferment: Form 4868

If you need to extend the time to submit your personalincome taxback, you must submitForm 4868, Application for Automatic Extension of Filing U.S. Individual Income Tax Returns.The deadline for applying for an extension is the same as the date you applied for the extensiontax refundUsually due to. In most years, that's April 15th or the next business day if that date falls on a weekend.

The last day to file your 2022 taxes or apply for an extension is April 18, 2023. The extension will give you until October 16, 2023 to file your 2022 tax return.

The IRS often extends tax-filing deadlines for victims of major storms and other disasters. consultIRS Disaster Relief Announcementto determine if you are eligible for one of these extensions.

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Applying for an extension is free and relatively simple. You can do it electronically or on paper.Either way, you will need to provide:

  • Identity Information: Your name, address, social security number and your spouse's social security number (if applicable)
  • Your Personal Income Tax Information: estimated totalPayableThis year, the total payments you have made, the balance due, and the amount you have paid

There are also checkboxes to indicate whether you are a U.S. citizen or resident abroad, or whether you submitForm 1040-NR.this is an income tax returnnon-resident alienThey may have to file if they carried on business in the U.S. or otherwise earned income from U.S. sources during the tax year.

Like all other tax forms,Form 4868Available on the IRS website.

Submit your tax deferment application online

IRS e-file is the IRS electronic filing program that allows you to send your tax returns, including Form 4868, directly to the IRS computer. You can self-file Form 4868 electronically through IRS e-File, usingFree or Commercial Tax Software, or with the help of a tax professional who uses electronic filing.

After submitting the form, you will receive an email confirmation. You should keep this confirmation with your tax records.

if yourAdjusted Gross Income (AGI)Below the specified figure - $73,000 in 2022 taxes filed in 2023 - you can use name brand software for freefree file.This is a free service that provides taxpayers with federal tax preparation and electronic filing options.

If your income is above the threshold, you can use the IRS fillable form tool.There are also some tax software companies that offer free tax preparation services under certain conditions.

Submit a tax deferment request by mail

Form 4868 may also be filed on paper.You can download the form from the IRS website or request that a paper form be mailed to you by filling out an order form on the IRS website.Alternatively, you can order the form by calling the IRS at 800-829-3676.Your local library or post office may also have copies.

It is worth noting that if you arefiscal year(non-calendar year) taxpayers, you can only file Form 4868 on paper.

If you realize ahead of time that you need an extension, don't wait until the last minute to file Form 4868. The sooner you submit, the more time you'll have to fix any potential errors that may arise before the deadline passes and the extension door closes.

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Tax deferment approval

If you electronically sent Form 4868 to the IRS, you should receive an email acknowledging receipt within 24-48 hours.For mail-in applications, you will not receive an email and will most likely need to call the IRS to confirm that your application was properly processed.

Silence is usually a good sign. The IRS will not contact you after filing tax deferrals unless there is a problem. This does not happen often, although tax deferral requests may sometimes be denied.

In most cases, applications are rejected for minor issues that are easily fixed. If it comes down to a typo or the information provided doesn't match IRS records, the tax authorities will usually give you a few days to fix the errors and resubmit the form -- this time with accuracy.

The IRS tends not to be kind to unrealistic tax liability estimates. If it doesn't match your number, your deferment application may be denied and you may even be penalized.

More time to commit, not more time to pay (usually)

It's important to remember that the Form 4868 extension gives you more time to file, not more time to pay.Even if the IRS allows an extension to file, you still must pay your taxes by their original due date for the year.In 2023, this means you still have until April 18, 2023 to pay any 2022 taxes you have.

If you think you may owe tax when you file your return, you should estimate how much tax you will owe and subtract any tax you have already paid (for example, bywithholding taxon your salary).

If your estimate is high and you end up overpaying, you willget a refundWhen you finally file your return. You will also avoid potential penalties andinterestAccumulation, which can happen if you underestimate your tax liability.

You can pay some or all of your estimated income tax online with a debit or credit card, or by electronic funds transferDirect payments.Even if you file electronically, you can mail a check or money order to pay your taxes. Make a check or money order payable to the U.S. Department of the Treasury and attach a completed Form 4868 as proof.

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If you file the form electronically and do not mail your payment, you do not need to file a paper Form 4868.

state tax deferral

Each state has its own tax deferral requirements. While some states offer an automatic six-month extension to all taxpayers (such as Alabama, California, and Wisconsin), others require you to complete the form on or before the original filing deadline.

SomeStates do not levy state income tax, so you will not file returns or extensions in those states. If your state does have an income tax, you can use business tax preparation software to generate the correct state-specific form, or find it on your state tax authority's website.

As with your federal tax return, the state extension is just to give you more timetax return, do not pay taxes. If you can, calculate what you owe and submit payment to avoid penalties and interest.

special rules

The IRS has two special circumstances that extend the tax deadline.

go abroad

If you are a U.S. citizen orforeign residentsAnd the normal return deadlines are:

  • Live outside the U.S. and Puerto Rico and your principal place of business or employment is outside the U.S. and Puerto Rico
  • Performing military or naval service outside the United States and Puerto Rico

Remember, you must include a statement with your return stating the circumstances under which you are eligible for the extension. Even if you qualify, if you owe money when you file, you may still owe interest on any taxes not paid by the original due date.

theater expansion

In one of the following two situations, the deadline for filing tax returns is automatically extended:

  • you serve in the militarywar zoneOr have qualified service outside of a combat zone.
  • You are serving in the armed forces deployed outside the United States, away from your permanent place of duty, while participating in contingency operations.

If you fall into one of these two categories, your due date to file and pay taxes180-day extension in any of the following cases:

  • Your last day of service in a war zone or in contingency operations
  • Last day of consecutive qualifying hospitalization for a work-related injury in a war zone or emergency operation

Add this 180 days to your remaining submission days when you enter the service.

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How do I file for an extension on my taxes?

You can request additional time to file your individual federal income tax return by completing and filing Form 4868. This form may be submitted electronically or by mail, which should automatically extend the submission deadline by approximately six months unless there are any issues.

Can I file tax deferrals electronically for free?

Applying for a tax deferment is free. If your adjusted gross income (AGI) is below the annual threshold of $73,000, you can request an automatic tax-filing extension electronically using the IRS Free File program. High earners can use the IRS Free Fillable form if they can easily handle their taxes. If not, how manytax softwareCompanies that offer free filings under certain conditions.

Is it easy to apply for tax deferral?

Yes, Protection Extensions is a fairly simple process. All you need to do is complete Form 4868 and file it electronically or by mail with the IRS by the due date. The form itself isn't very long, but estimating your total tax liability for the tax year can sometimes be tricky.

Is there a penalty for applying for tax deferral?

No, there is no penalty for applying for an extension. In most cases, the penalty is not paying on time, not paying at all, or underpaying. Even if you apply for an extension, you still have to estimate and pay your tax liability by the normal filing deadline. If you fail to pay everything you owe, the IRS will charge you interest on the unpaid amount until your bill is settled in full. You may also be fined if this happens to be less than 90% of the total.

When is the 2022 tax filing deadline?

Federal income taxes for 2022 are due by April 18, 2023. This is also the last day to apply for an extension. If you successfully apply for an extension before that date, you will have until October 16, 2023 to file your 2022 tax return.

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the bottom line

To request an extension to file your tax return, complete and file IRS Form 4868 by tax day (usually April 15). You don't have to explain to the IRS why you are getting the extension. Most requests are automatically approved, and the IRS will only contact you if your request is denied.

You can file your tax return any time before the extension expires, and you do not need to include a copy of Form 4868 with your return.Remember, getting an extension to file your tax return doesn't mean you can delay paying your taxes, too. You still have until April of that year to estimate and pay any federal taxes you owetax deadline.You will also want to check your state for any regulations on filing state tax deferrals.


How can I get answers to tax questions? ›

If you have questions about your return, how to file or anything related to your taxes, you can call the IRS helpline at 1-800-829-1040. There's no limit on how often you can call, and if it can, the helpline will provide you with as much information as it can.

How to get $7,000 tax refund? ›

Below are the requirements to receive the Earned Income Tax Credit in the United States: Have worked and earned income less than $59,187. Have investment income less than $10,300 in tax year 2022. Have a valid Social Security number by the due date of your 2021 return.

How do I defer my taxes on my income? ›

There are many other ways to postpone your taxable income. For instance, you can contribute to a traditional IRA, buy permanent life insurance (the cash value part grows tax deferred), or invest in certain savings bonds. You may want to speak with a tax professional about your tax planning options.

Do you have to report box 14 on W-2? ›

Entering helpful information in Box 14 of your employees' annual W-2 forms can assist them in their annual personal tax preparation - and limit the number of questions employees ask you about their W-2 forms. Box 14 of Form W-2 is for "information only" and is not required information, nor does it "balance" or ...


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