The deadline to file your taxes is around the corner on April 18, 2022, extending from April 15. But based on your particular circumstances, you may be wondering if you are eligible to file for a tax extension with the Internal Revenue Service (IRS). You would have until October 17, 2022, to file your taxes by obtaining a tax extension.
Typically, the extension goes through October 15, but because that day falls on a weekend, taxpayers gain an additional few days with the extension. However, just because you push your filing date to later in the year, taxpayers are still expected to pay any owed taxes by the initial tax deadline.
Not sure if filing for a tax extension is correct for you? AA Tax & Accounting Services has put together a list of common reasons for requesting an extension and how you can better plan for next year’s tax filing.
Common Reasons for Requesting a Tax Extension
If you’re considering requesting a tax extension with the IRS, you must fall into one of these categories to be eligible.
Incomplete Tax Documentation
Are you waiting on a few tax documents to submit your tax return this year? If you don’t want to submit without them, you should continue to wait for the tax documents to arrive and apply for an extension.
Unexpected Events
We get it. Life happens. Suppose you have experienced a life-altering event such as the death or illness of a family member, encountering a natural disaster, or other circumstances that make it difficult to file on time. In that case, you may be eligible for an extension so you can focus your time and energy on your taxes at a more convenient time.
IRA Conversions
Did you convert your traditional IRA into a Roth IRA during this tax year? If so, you will be required to pay taxes on the entire balance. To avoid paying tax on the converted IRA, you can “recharacterize a Roth IRA back into a traditional IRA. This can take time, meaning you may benefit from a tax extension.
Tax Planning Strategies
Follow these tax planning strategies to prevent a massive tax bill.
Perform Quarterly Tax Checks
Tax season can be stressful for many because they haven’t looked at their tax-related documents since they filed their tax return the previous year. Avoid the anxiety surrounding tax season by reviewing your finances quarterly. This will help you get a pulse on how the year is shaking out and pivot as needed.
Organize Your Tax Documents
One of the worst parts about tax season is locating all the necessary documentation needed when filing. Reduce your stress come tax season by organizing your tax documents in a digital or physical folder as you receive them throughout the year. Managing your tax documents early on will save you time and reduce headaches.
Check Tax Credits
Have you taken advantage of all the tax credits you are eligible for? Consider any tax credits you took advantage of this year due to Economic Relief Payments and tax credits such as Child Tax Credits. Work with a certified tax planner to take advantage of all tax credits and deductions available.
Tax Consulting Services in Cedar City, Utah
If you’re unsure whether filing for a tax extension is the right choice for you, we recommend consulting certified public accountants like AA Tax & Accounting Services for help making any decisions related to your tax return.
From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as their tax advisors and tax preparers — ensuring that your tax team understands your taxes backward and forwards. You can have peace of mind knowing that our team has the experience to provide you with the most effective strategies for maximizing deductions and tax credits with our tax consulting services.
The AA Tax & Accounting Services team can help you execute the right tax strategies and decide if a tax extension is the best choice. Contact us to schedule an appointment.
