Did you take advantage of the 2023 tax extension deadline? In other words, instead of filing your taxes back in April, did you accept the opportunity to extend that until later? It might have felt like “later” was far away in the future when you did that. However, “later” is just about here. It’s time to make sure that you file your taxes. Just to be clear, this is for your 2022 taxes that would typically have been due April 15th, 2023 but are now due to be filed by October 16th, 2023.
What is the 2023 Tax Extension Deadline?
The 2023 tax extension deadline isn’t some new thing that just cropped up. Therefore, if you already filed your 2022 taxes, then you don’t need to worry about this at all. However, many people weren’t able to file their taxes by the usual mid-April date this year. If you fall into that category, then perhaps you decided to get the extension.
What is a Tax Extension Deadline?
You typically have to file and pay your taxes, both individual and business, by mid-April of the year following the tax year. So, for 2022, you would usually file no later than mid-April 2023. However, the IRS recognizes that there are many reasons why it might not be possible to get that paperwork done on time. Therefore, they allow you to request an extension.
It’s a fairly easy process to request that extension. As the IRS explains on their website:
“You can use IRS Free File at IRS.gov/freefile to request an automatic filing extension or file Form 4868, Application for Automatic Extension of Time to File.”
Then you have until the extension date to file your taxes. It’s generally as easy as that; you request and they grant it and then you don’t have to file until a later date.
October 16, 2023, Automatic Tax Extension Deadline
Tax extensions have always been allowed, so why is it such a big deal this year? It’s because, in 2023, some states granted automatic tax extension deadlines. This was primarily due to disasters in key areas that made it difficult for large groups of people to file their taxes on time earlier this year. Instead of asking everyone to request individual extensions, the government went ahead and said that it was okay for everyone to extend the deadline. So, for example, California residents didn’t have to request an extension; they were automatically granted until October 16, 2023, to file their 2022 taxes.
Extensions varied by area. Even within California, there were a few counties that had earlier filing deadlines. There was at least one county that didn’t offer the extension. States other than California also issued these disaster-related automatic extensions, although not all states. This might have all been confusing at the time, but regardless, if you haven’t filed your 2022 taxes, yet, now is the time to do it.
Exceptions Allowing for Later Tax Extensions
If you received an automatic extension or requested an extension, then you most likely have to file your taxes by 10/16/23. However, there are some exceptions as outlined by the IRS:
- People affected by flooding in Illinois must file by October 31, 2023.
- Likewise, people affected by flooding in Alaska must also file by October 31, 2023.
- However, people affected by flooding in Vermont have until November 15, 2023 to file.
- People who were recently impacted by Hurricane Idalia have until February 24, 2024, to file.
- Those people who were affected by the recent fires in Maui also have until February 24, 2024, to file.
The IRS regularly updates these dates in accordance with the impact of natural disasters around the country. If you aren’t sure whether or not you’ve been impacted or when your 2022 taxes are due, then check with the IRS website.
Requesting an Additional Tax Extension
Outside of the above exceptions, there are no more tax extensions for the 2022 tax filing year. If you received an extension and your taxes are due on October 16, 2023, then you must file by then. You can’t request additional time beyond that.
Tax Payments and Penalties on Taxes Filed in October 2023
There’s a key point that many people failed to understand in April 2023 when they accepted the extension for filing their taxes and that’s the point about payment. When you request a tax extension deadline, you extend the amount of time required to file the paperwork. However, you do not extend the amount of time required to pay.
In other words, if you owe the government money on your taxes for the 2022 year, then you owe that money starting in mid-April when taxes were originally due. If you haven’t paid that because you haven’t filed, yet, what does that mean? It means that you will incur a penalty fee that’s applied when you go to pay your taxes.
Key Penalties and Payments to Understand
Here are the types of penalties and payments that you should understand as you go about getting ready to file your taxes now:
Failure to File Penalty
Typically, if you don’t file your taxes in April, and you also don’t request an extension, then you are charged a penalty fee called the Failure to File Penalty. They charge you money for not filing on time. However, because there were automatic extensions granted to a lot of people as described above, you might not have to pay that one this time around.
Tax Owed Payments
If you file your taxes and learn that you owe money to the government, you still owe that money. For the most part, this is the same in October as it would be if you filed in April. In other words, you do your taxes (or have someone do them for you). Then you find out how much you owe. Then you either pay immediately or set up a payment plan with the government.
Late Fees for Unpaid Taxes
Here’s what’s different, though, on that money that you owe if you didn’t file in April and are now filing in October … you will be fined a late fee for not paying sooner. Yes, you were allowed to not file the paperwork until now. However, you were still expected to pay the government any money that you owed. You were supposed to estimate what you might owe and pay that at the time. So, if you didn’t do that, then you don’t just owe the amount but also the late fee penalty for not paying it until October.
Additional Key Information About Tax Extensions
The above information so give you what you need to know to file properly for the impending tax deadline. However, here is some additional information about tax extensions that you might find useful now or to bookmark for the future.
Nothing Changes About the Content of the Taxes
The extension merely extends the deadline for submitting your tax return. It does not affect the content of your return. Taxpayers can still identify, calculate, and claim all the deductions and credits applicable to their specific financial situation, even if they’ve requested an extension. Your taxes themselves will be the same. It’s just when they become due that’s different. That, and, as discussed above, there may be penalties for not paying sooner if you owe this year.
Tax Extension Deadlines for Different Types of Taxes
Requesting tax filing extensions can be done for an individual taxpayer, a small or large company, a partnership, an S corporation, or the trustee of an estate.
First, you find the right form to request the extension. It’s a Form 4868 for individuals. For businesses, it might be a form 7004. The IRS website will direct you to the right form. You have to file that by the original filing deadline. This is typically April 15th for individuals. It’s typically the 15th day of the fourth month after the tax year closes for businesses.
Despite these similarities, there are significant differences in the extension process based on entity type. Individual taxpayers receive a six-month extension, shifting the filing deadline from April to October. That’s why we’ve been emphasizing the upcoming 2023 tax extension deadline.
In contrast, businesses experience varying extension durations: C corporations receive an automatic five-month extension, while partnerships and S corporations receive an automatic six-month extension.
Payment is also different. Individual taxpayers must estimate and pay any owed taxes by the original tax deadline, as explained above. Businesses generally do not need to make estimated payments with their extension request but should pay any taxes owed by the extended due date.
State vs. Federal Tax Extensions
State tax extensions and federal tax extensions share some similarities but also have distinct differences.
Similar to federal extensions, state tax extensions provide taxpayers with extra time to file their state tax returns beyond the original due date. In many states, the deadline for requesting a state tax extension aligns with the federal tax extension deadline.
However, it’s essential to recognize that state tax extension rules and procedures can vary significantly from state to state. Some states automatically grant extensions when you request a federal extension, while others require a separate request and may have different criteria and deadlines.
Therefore, individuals and businesses should always check with their specific state’s tax agency to understand the particular requirements for obtaining a state tax extension to ensure compliance with both federal and state tax obligations.
How to File Your Extended Deadline Taxes
In 2023, taxpayers are often choosing to use the IRS’s Free File service. In other words, you can file your taxes online for free if you have simple taxes. The IRS website has all of the information that you need.
Alternatively, you can still file by paper if that’s preferable to you.
And, of course, you can use tax software and/or tax filing services to assist you as needed.
Preparing for Next Year
Hopefully, you’re able to get your ducks in a row and file your 2023 taxes by April 15, 2024. However, if not, remember these things for requesting an extension next year:
- Request the extension before the filing deadline in April.
- Use Form 4868, the “Application for Automatic Extension of Time to File.” This form can be conveniently submitted electronically through the IRS website or mailed to the IRS.
- Alternatively, you can make an estimated tax payment online, which will automatically grant you an extension without the need for Form 4868.
- Either way, if you think that you will owe money, make a payment.
- File your taxes by October 2024.
Read More:
- So You Need A Tax Filing Extension-Here’s What You Need To Know
- How Long Can You Postpone Your Taxes?
- Tax Tips for Last-Minute Filers
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Kathryn Vercillo is a professional writer who loves to live a balanced life. She appreciates a good work-life balance. She enjoys balance in her relationships and has worked hard to learn how to balance her finances to allow for a balanced life overall. Although she’s only blonde some of the time, she’s always striving for total balance. She’s excited to share what she’s learned with you and to discover more together along the way.
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