How do I complete my Federal Extension (Form 4868)?
If you can't meet the mid-April deadline to file your tax return, you can get an automatic six-month extension of time to file your return from the IRS. The extension will give you extra time to get the paperwork in to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amounts not paid by the mid-April deadline, plus a late payment penalty if you have paid less than 90 percent (80% for tax year 2018) of your total tax by that date.
All amounts that you enter on your Form 4868 should be the amounts that you expect to report on your return. They do not have to be the exact calculations, but they should be relatively accurate estimates.
To enter in the program choose:
1. Federal Section
2. Miscellaneous Forms
3. Application For Extension (Form 4868).
Tax Liability: Enter the total tax liability you expect to report on your return. This information is not required.
Amounts previously paid for current tax year: Do not include any amount you plan to pay with your extension. Enter the total payments you paid through quarterly estimated payments and tax refunds applied to the current year. This information is not required to file the extension.
Amount Paid with Extension: Enter here the total amount that you plan to pay with your extension. Your "Tax Liability" minus your "Tax Payments" would be the total "Balance Due" on your return. You can choose to pay that amount in full, in part, or you can choose not to pay any amount with your extension. If you do not pay the amount in full, you will owe interest on any amounts not paid by the mid-April deadline, plus a late payment penalty if you have paid less than 90 percent (8-% for tax year 2018) of your total tax by that date. This information is not required to file the extension.
If you plan on making a payment with your extension, select Go to Extension Payment. Otherwise, click Continue.