Didn’t finish filing your taxes on time? Apply for an Tax Extension
Tax Extension Tips and Why You Should File Early
If you’re like the other 19 million Americans who missed the April tax deadline, it’s time to file a tax extension to avoid stress and penalties. Filing an extension doesn’t have to be a hassle. Just grab a Form 4868 and submit it by the regular due date (usually April 15). That gives you an extra six months to file your tax return.
But heads up: you still need to pay any taxes owed by the original deadline or you’ll face penalties and interest.
Pitfalls to watch out for:
Don’t pay late. Penalties and interest start stacking up if you miss the original due date.
Know your state’s rules. The federal extension doesn’t apply to your state return. You may need to file a separate extension with your state.
Now, let’s chat about K-1s
You’ll get a K-1 if you’re a partner in a partnership, a shareholder in an S corporation, or a beneficiary of certain trusts and estates. You must include the K-1 info in your individual tax return. If your K-1s haven’t arrived by the filing deadline, file an extension. Submitting an incomplete return can trigger penalties—and no one wants the IRS breathing down their neck.
So, this year (or any year), don’t wait. File that tax extension early to reduce stress and avoid unnecessary penalties.
Creating an optimal tax planning strategy depends on a variety of factors, including your personal or business goals. If you’re unsure where to start, our team can help you build a plan that’s aligned with your future.
This article is brought to you by the wizard behind the scenes with 23 years of experience, Dan Dillard. Of course, with his workshop of helpers—including some handy hi-tech sourcing.
If you’re finding it challenging to stay on top of all the changes, connect with our financial planning professionals by scheduling a no-obligation call. At NEST Financial, we can help make crypto not quite so cryptic.
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DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only. These are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.