![]() ![]() ![]() Since this conversion may take some time, a filing extension can eliminate your obligation to pay the tax.īeginning in 2018, recharacterizations are no longer permitted. However, the IRS allows you to "recharacterize" your Roth IRA back into a traditional IRA at any time before you file your tax return, which allows you to avoid paying tax on the balance. For example, up until 2018, if you convert your traditional IRA into a Roth IRA, you must pay tax on the entire account balance at the time of conversion. Sometimes taking the extra time to file your return may be a strategic decision to help you obtain more tax savings. TurboTax Tip: If you pay your taxes with a debit card before the filing deadline, the payment method serves as your extension application and you won't have to file Form 4868. While the IRS does not need an explanation when you apply for an extension, there is no reason to prepare your tax return in a rush if other issues keep you from focusing on it. If you have a death or illness in your family or fall victim to a natural disaster, you may be unable to file on time. ![]() Unexpected life eventsĮven if you intend to file your tax return by the deadline, sometimes life events interfere with your ability to file. If you just estimate your income, it’s likely you will have to make corrections in the future anyway. For example, if you’ve lost the W-2 your employer sent you and are waiting for a duplicate to arrive, you are better off filing the extension and waiting for the W-2. Since the federal government will grant you an extension just for the asking, you can take advantage of this additional time to ensure your return is accurate. Even if you obtain an extension to file, you must still pay your income tax in full by the tax deadline. Common reasons for requesting an extension include a lack of organization, unanticipated events or tax planning purposes. However, the IRS does grant you an automatic extension to file your taxes every year, as long as you complete Form 4868. Traditionally, federal tax returns are due on April 15 or the first business day thereafter if the 15th is on a weekend or holiday. If you fail to pay on time, you may face penalties and interest. Even if you obtain an extension to file, you must still pay your income tax in full by the tax deadline.Some people require an extension because life events-an illness, a death in the family, or a natural disaster-have interfered with their ability to file on time.If you estimate, you might have to file an amended return. One reason for requesting additional time is to help ensure that you have all of the documents needed to file an accurate return.When you submit a completed Form 4868 to the government before the tax deadline, the IRS will normally grant you an automatic extension to file your taxes. ![]()
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