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Filing taxes can be stressful, and even the most well-prepared individuals may need more time to file taxes. Opting to file a tax extension can be a practical solution in these situations, but there are a few key things to understand before you file one.

What Is a Tax Extension

A tax extension gives you six more months to file your taxes. This means instead of the usual April 15 federal deadline, those who apply for an extension have until October 15 to submit their federal tax documentation. Maryland’s Tax Day is April 30, so an extension would move the deadline to October 30, and Virginia’s is May 1, moving the deadline to November 1.

Essential Things to Know About Filing for a Tax Extension

Here is a brief overview of some important things you’ll want to know about before filing a tax extension.

Extensions Won’t Delay Payment

The most important thing to remember is that a tax extension gives you more time to file your return, not to pay your taxes. The deadline to estimate and pay any taxes you owe is still the original filing deadline (typically April 15th).

You Could Be Penalized

Again, filing a tax extension does not mean you can delay your payment. This means if there is a tax debt that is not paid, it becomes a late payment that could be subject to penalties. It is crucial to estimate your tax liability and pay the total amount due by the original deadline to avoid incurring late payment penalties.

Questions?

Have questions about filing a tax extension or how it may impact your unique tax situation? Our tax planning and prep experts are here to help. Contact us.