Need More Time To File Your 2021 Tax Return? Here’s How To File An Extension

The deadline to file 2021 tax returns is creeping closer, and many taxpayers may not be ready to meet Monday’s deadline. For those that need more time, the Internal Revenue Service does allow extensions to be filed by Monday with Form 4868 using its Free File tool.

According to the federal agency, Free File will guide taxpayers through each section of their tax return with a question-and-answer format to file their federal return for free.

Form 4868 can also be mailed to the IRS if it is postmarked by Monday.

Tax extensions, according to the IRS, will give taxpayers until Oct. 17 to file their 2021 tax returns.

But taxpayers need to keep a few things in mind when filing for an extension.

While filers will have more time to file their returns, this does not mean they can delay paying the government the taxes they owe, a misconception often believed by many Americans.

Owed tax payments are still due on Monday, meaning that taxpayers are required to estimate their tax liability at this time. Those that underpay will be charged a penalty and interest, and those that overpay will receive their overpayment after they file their 2021 return. This can be figured in Part II of Form 4868.

Payment plans are available from the IRS for those that are unable to pay the full tax amount they owe.

Taxpayers that file an extension and miss the Oct. 17 deadline will be charged a failure-to-pay penalty, which will typically cost 0.5% of their unpaid taxes for each month they don’t pay up to 25%.

However, those that file an extension and submit their 2021 tax returns before the Oct. 17 deadline will receive their refunds sooner if one is owed.

The IRS said on April 1 that it had already processed more than 89 million tax returns and issued $204 billion in refunds to 63 million taxpayers. The average refund size was $3,226, up from $2,893 from last year’s tax season.