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How Long Is a Tax Extension?

tax extension

A tax extension grants you an extra six months to file but doesn’t give you any extra time to pay.

A tax extension gives you an extra six months to file your return.

You must file an extension by April 15th (or whatever the normal tax deadline is for that year). It then grants you an extra six months to file, making your new deadline October 15th.

This year for 2018 taxes, for example, if you requested an extension by April 15, 2019, your return is due by October 15, 2019.

Note an extension only give you an extra six months to file, it does not give you an extra six months to pay.

When you request an extension, you will have to estimate your tax liability and pay any tax due or else you could be subject to failure-to-pay penalties starting April 15th. Continue reading “How Long Is a Tax Extension?”

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2010 Income Tax Refunds Only Available Until April 15, 2014

If you haven’t filed your 2010 return yet you have less than a year to get your refund

Most taxpayers are frightened of the IRS, and understandably so. Not only does the agency force us to go through the tortuous process of filing taxes every year, but it also has the power to implement some pretty drastic punishments when taxes go unpaid. It can levy your wages and bank accounts and force you to sell or mortgage assets to pay your tax debt.

But what most people don’t know is that the IRS is surprisingly lenient when it comes to minor offenses, such as filing a late return. Most late filers assume that they will get hit with massive penalties, so they try to hide from the IRS and avoid filing their taxes for even longer.

Doing so, however, might actually cause them to sacrifice a refund. Late filers are more likely than normal filers to receive a refund, and the tax code’s statute of limitations allows you to claim a refund for three years after the original due date of the return.

That means that the last chance to claim a refund from your 2010 return is April 15, 2014. That’s less than a year away! Take note: after next April 15th your refund belongs to the U.S. Treasury and you absolutely will not be able to claim it. Continue reading “2010 Income Tax Refunds Only Available Until April 15, 2014”

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First-Time Tax Filer FAQ

Information to make taxes easier for first-time filers

The U.S. tax code is one of the most complicated things out there. Even experienced professionals who have spent their entire careers dealing with it can still be confused about some of the finer points. If you’re just starting out and have never filed a return before it can be incredibly daunting.

Thankfully, RapidTax has assembled a collection of questions that frequently confuse first-time filers. The information here is hardly complete, but it should serve as a basic introduction to the world of taxes. If you need more information about a particular topic, trying searching for what you need in the sidebar; there are tons of great articles on the RapidTax blog that could answer your question.

But that’s the great thing about RapidTax: it makes filing taxes so simple you don’t have to bother with all that information. Get started on your return now to see for yourself.

Federal taxes vs. state taxes

When most people file their taxes, they have to file both a federal income tax return and a state income tax return. These are two different returns and you may very well be charged extra for preparation of the state return. Continue reading “First-Time Tax Filer FAQ”