Why You Should File For an Income Tax Extension

If you are looking for a quick and easy way to save up money then filing taxes is not that hard. You need to file for an income tax extension in order to extend your tax time for as long as possible. The best part about this process is that filing for an extension does not cost anything and it can save you a lot of money since the IRS will work with you. 

If you are due a tax refund and your return is filed by the April 15th deadline, you may be able to file for an income tax extension. Here are some reasons why you should file for an income tax extension: 

  • You may qualify for an income tax extension if you have exceptional circumstances that prevent you from filing your return on time.
  • You may be able to file for an income tax extension if you need more time to prepare your return.
  • If you owe taxes and do not receive a refund, filing for an income tax extension may result in less interest being charged on your debt.
  • If you are injured or unable to work because of a natural disaster, filing for an income tax extension may allow you to claim casualty loss deductions on your taxes.

Pros of Filing for an Income Tax Extension:

There are many benefits to filing for an income tax extension. The most common reason people choose to file for an extension is that they don’t have enough time to prepare their taxes. If you’re eligible, filing for an extension will allow you more time to gather your documentation and figure out your deductions. 

Another benefit to filing for an income tax extension is that it can increase your refund. The longer your return is processed, the more likely you are to receive a large check in the mail. 

If you owe money in back taxes, a delay in receiving those payments may not be such a bad thing after all. Extensions often result in larger refunds than if taxes were actually paid on time in the first place. 

If you qualify for an installment agreement, extensions can also help reduce the amount of interest that will be charged on any outstanding debt by extending the statute of limitations period (the time within which collection action may be taken). 

If you have children under 18 who will be dependent on your income in the year you file your tax return, filing for an extension may also be beneficial. This is because many child tax credits are limited to taxpayers who file their returns on time.