Tax season is here and for some, that means extra money in the back. To others, however, the opposite may be true. Freelance workers, for example, aren't taxed when they get paid and, as a result, usually end up having to pay money when tax time comes around. Of course, there are write-offs that can be used, but it's always been urged to not write-off too much because it is usually a flag for auditors. However, of this is your first year freelancing, knowing how to file for a tax extension can come in really handy because you may get a little overwhelmed trying to do your taxes yourself.
It's worth noting that filing for a tax extension isn't limited to freelancers. But when you know you'll owe money to the IRS, having those extra six months to file can come in super handy. According to the IRS website though, filing for a tax extension past the April 18 due date is only an extension on filing — not on paying. You may, however, be able to qualify for payment plans if you're not able to pay by the designated due date.
Filing for an extension may seem like a rigorous activity, but according to TurboTax, all you have to do is fill out a quick and simple form. Although there are different sites that offer the IRS Form 4868, IRS.gov recommended that users go through File Your Taxes, TaxSlayer, Free 1040 Tax Returns, Free TaxACT Free File, Online Taxes at OLT.com, 1040.com, or Free Tax USA. Regardless of the source you use to file your 4868 form, you should not be paying to do so, as the IRS noted that this is a free service offered to everyone.
Though filing for an extension is a great option for those who may need a little more time, the IRS encourages everyone to file on time — even if you can't afford to pay what you owe. The site revealed that there are late fees, penalties, and interest rates that are tacked on to your amount if you choose to file late.
So, if you were contemplating filing for a tax extension, but were under the impression that it took too much work, here's hoping that this made it a little easier to understand.