To calculate tax liability, or the amount owed to the government on 2020 income, individuals must fill out Form 4868. If you underpay, you'll be charged the penalty, and if you overpay, you won't get the extra money back until after you file. Those who request an extension will be required to estimate their tax liability. The more you pay by April 18, the less interest and penalty charges you’ll owe later. The IRS offers some payment plans to individuals who are unable to pay the full amount of taxes they owe. If you owe taxes to the federal government, payments are still due on April 18, which is the deadline this year. "A common misconception is that you get more time to pay, and that’s not true." ![]() "Extension to file is not an extension to pay," Eric Bronnenkant, head of tax at online financial adviser Betterment, told FOX Business. 17 before the penalty starts accruing.Įxperts caution that filing for an extension does not mean you can delay paying the government the taxes you owe. If you file for an extension, you have until Oct. ![]() By pushing back the filing date, you can also avoid a failure-to-file penalty - an extra 5% per month on the unpaid amount, which can add up to 25% of the tax due. It can give filers more time to thoroughly review a return and take advantage of all the tax benefits, like various deductions and credits available to help reduce liability. (Al Drago/Bloomberg via Getty Images / Getty Images) IRS headquarters in Washington, D.C., Feb.
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