The income tax deadline is mid-April, but taxpayers can request an extension to file by submitting IRS Form 4868. A tax filing extension gives you until October to file your return.
If you don’t file your tax return by the October extension deadline, the IRS may charge a penalty for filing late. Whether you file for an extension or not, you must pay taxes you owe in April.
Here are some tips for filing taxes by the October extension deadline.
What are the Best Ways to File Taxes by the Extension Deadline?
There are several ways to file your taxes by the extension deadline. These include:
- Tax Prep Software: You can file your returns using reliable tax prep software such as H&R Block, TurboTax, Tax Act, and more. If you are planning to use tax software, ensure your platform supports Form 4868 tax extensions.
- Authorized IRS e-file Provider: An authorized IRS e-file provider is a tax professional approved by the IRS to assist taxpayers in preparing their taxes and filing returns via the IRS electronic filing program. You can trust these individuals to file your taxes correctly and efficiently before the deadline.
- IRS Free File for Low-Income and Military/Veterans: You can also opt for IRS Free File. The IRS partners with a non-profit organization called the Free File Alliance to provide low-income earners and members of the military (including veterans) access to free tax prep. Anyone earning less than $73,000 of adjusted gross income can use IRS Free File.
- Volunteer Income Tax Assistance (VITA) for Low-Income and Disabilities: VITA provides IRS-certified volunteers to assist qualified individuals in preparing and electronically filing their basic income tax returns for free. VITA programs benefit low-income earners and persons with disabilities.
How Do You Pay Taxes Online by the October Extension Deadline?
Although the tax filing extension until October gives you 6 more months to file, it won’t give you additional time to pay what you owe the IRS. To avoid interest and penalties, you must pay taxes in April.
That said, if you still haven’t paid, the following are some of the convenient ways to pay taxes online. Pay before the extension deadline so you don’t continue to accrue additional interest and penalties.
- IRS Direct Pay: Individual taxpayers can use IRS Direct Pay to pay their taxes. Direct Pay is a free IRS service that you can use to pay taxes directly from your bank account.
- Debit/Credit Card or Digital Wallet: Individuals and businesses can pay their taxes using a debit card, credit card, or a digital wallet such as PayPal. However, this payment method cannot be used for payroll tax deposits.
- Electronic Federal Tax Payment System (EFTPS): You can also use EFTPS to make non-depository payments of estimated, self-employment, excise, corporate, and payroll taxes via the electronic system. EFTPS is a free tool the US Treasury provides to help taxpayers process secure payments online via direct debit from their bank account.
- Electronic Funds Withdrawal: If you are e-filing, you can use Electronic Funds Withdrawal to pay your taxes. Electronic Funds Withdrawal is an e-file/e-pay platform that you can use when filing your taxes through a tax professional or tax preparation software.
- IRS Payment Plan/Installment Agreement: These short and long-term payment plans allow a taxpayer to pay the taxes they owe within an extended timeframe rather than paying a lump sum up front. Consider a payment plan or installment agreement if you are sure you will be able to pay your taxes but just need more time.
- Offer in Compromise (OIC): If you are not in a financial position to pay your IRS taxes, you can apply for an Offer in Compromise to settle your taxes for a fraction of what you owe.
- Currently Not Collectible (CNC) status: The IRS can place your account in Current Not Collectible (CNC) status if they determine you are experiencing a financial hardship and can’t pay both your taxes and basic living expenses. A CNC status means the IRS will temporarily stop collecting your back taxes.
What If I Need More Time to Pay My Taxes After October?
If you need more time to pay IRS taxes after the October extension deadline, you can always sign up for a payment plan or installment agreement:
What If Can’t Pay My Taxes Even After the October Filing Extension?
Is Direct Deposit the Best Choice for Tax Refunds If You File at the Extension Deadline?
Yes, using the IRS Direct Deposit program is a faster, more reliable, and more secure way to receive your refund. This guarantees your tax refund is electronically deposited into your bank account and you don’t have to worry about cashing or depositing a physical IRS check.
The IRS can direct deposit your refund into one or multiple accounts. According to the IRS, many direct deposit refunds are issued within 21 days.
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