Thursday, 24 October 2013

The 4868 Tax Form Explained: FAQs Answered

Tax Season, one of the most frustrating and stressful times of the year and for the first time ever, you have to file for an extension but you have no clue what it means or even how to go about doing it; which means even more frustration and stress but there is help for you, right here! Continue reading to learn more about the 4868 Tax Form and how it is considered to be one of the easiest forms you will ever fill out pertaining to your taxes. Official Name for Form 4868

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What is the Goal of this form?

The 4868 form is typically used to apply for a 6 month extension to have more time to complete your taxes and get them filed.

What are the qualifications for an extension?

In order to get an extension for your taxes to be completed and filed, all you really have to do is:
1. Properly estimate your tax liability using the information that is available to you
2.  Enter the total tax liability on line 4 of the 4868 form, and
3.  File the 4868 form by your regular due date of your tax return.

When should an extension be filed?

You must file your 4868 form by April 15th. For those who are fiscal year taxpayers, you are required to file a 4868 form by your regular due date of your tax return.

I will be out of the Country on April 15, what do I do?

While you are out of the country and a US citizen or resident of the US, you are actually allowed up to 2 extra months to file your return as well as to pay any amount that may be due without filing an extension form. In the event of a calendar year return, which is typically in June, you can file a 4868 form; ensure that you have checked the box on line 8 if you need 4 months more to file your tax return.

Take note, if you are out of the country and you a US citizen or resident, you have the option to qualify for a special tax treatment in the event you meet the foreign residence or presence tests that are available.

What does ‘out of the country’ mean?

You are out of the country if:

·        You live outside the United States and Puerto Rico and your main place of work is located outside the United States and Puerto Rico, or

·         You are in military or naval service that is located outside the United States and Puerto Rico.
Take note that if you do qualify as being ‘out of the country’, you are still eligible for the extension even if you found yourself physically present in the United States or Puerto Rico on the usual due date of your return.

What ways can I file for an Extension?

There are 3 ways to place a request for an automatic extension to file a US individual income tax return.

1. You can file Form 4868 electronically by accessing IRS e-file using your home computer or by using a tax professional who uses e-file.

2. You can pay all or part of your estimate of income tax due using a credit card.


3. You can file a paper Form 4868.

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