Six Month Tax Extension
George:
It’s almost April 15th, and I haven’t had time to do my taxes! What can I do?
Penny:
Don’t worry George, you can get an automatic six month tax extension. All you have to do to receive it is file form 4868.
George:
What a relief! That’s especially helpful because I’m pretty sure I owe money on my taxes. Having six more months to pay would be so helpful!
Penny:
Sorry, George, unfortunately that isn’t how it works. The six month extension is only for FILING your taxes, NOT for paying your taxes. Your tax payment is still due in April even if you wait until October to file your return. If you don’t pay your taxes by the April deadline, you will be on the hook for penalties and interest when you do file and pay your taxes.
George:
How will I know how much I need to pay in April if I don’t do my taxes until after that?
Penny:
You’ll have to estimate what you would owe. I would suggest that you over-estimate if you are in any doubt about how much you owe. If you under-pay in April, you will still be responsible for penalties.
George:
How much would my penalty be if I don’t pay on time, or if I don’t pay enough?
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