How to Complete Form 4868 Tax Extension: A step-by-step Instruction (2021)

 Nearing the annual income tax return submission, every individual in the U.S must be aware of filing Form 1040 within April 15, 2021, to avoid unwanted late filing IRS penalties. But if you are stuck with some reasonable cause and are looking for an extension to file the 1040 form with the IRS and save yourself from huge penalties. In that case, you can use Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, and get an automatic extension period of 6 months. 

Here are the step-by-step Form 4868 instructions to complete and file it with the IRS for the extension. But, before deep-diving into the instructions to complete Form 4868, if you are a first-time filer, you must know:

1. What is Form 4868

2. When to file Form 4868

3. How to file Form 4868

 Form 4868

Form 4868 is an application for a U.S. citizen or resident to request an automatic extension of time to file a U.S. individual income tax return. 

Form 4868 can be applied to the following forms:

1. Form 1040

2. Form 1040-SR

3. Form 1040-NR

4. Form 1040-NR-EZ

5. Form 1040-PR

6. Form 1040-SS

Filing form 4868, you will get an automatic extension of up to 6 months from April 15, 2021, to October 15, 2021.  

Note: If you still need to pay any tax due within the regular IRS deadline, the Form 4868 extension does not extend the time to pay.

When to file

Personal Tax Extension Form 4868 is due on April 15, 2021. Filing Form 4868 will extend the filing due to October 15, 2021, for the individual tax forms 1040, 1040A, 1040-EZ, 1040NR, 1040NR-EZ, 1040-PR, or 1040-SS.

How to file 

IRS Form 4868 can be filed either electronically or by paper.

The IRS encourages individuals to file electronically so that you can get to know the status of your submitted forms instantly. Choose an Electronic filing method for secure, quick, and more accurate filing.

If you choose to paper file, download Form 4868, fill in the required details and then send it to the IRS using the address mentioned here.

Instructions to complete Form 4868

Form 4868 instructions has 2 two parts. Here are the step-by-step instructions you need to follow to complete Part I and Part-II of Form 4868.

1. Part I of Form 4868- Identification

Line 1: Name and address

Line 1 asks for your basic information. Enter your name(s) and address. If planning to file a joint return, provide both the spouses’ names in the order in which they want to appear on the return.

In case there is any change in your name due to marriage, divorce, or any other personal reason. You must notify the change to the Social Security Administration (SSA) before filing Form 4868 so that you can avoid rejections and application process delays. 

If there is a change in the mailing address after you filed your last return, use Form 8822, Change of Address, to inform the IRS about the change.

Lines 2 and 3: Social Security Number(s)

While you decide to file as a joint return, you must enter your Social Security Number (SSN) on line 2 of part-1, followed by your spouse’s Social Security Number online 3.

Note: If you’re filing Form 1040-NR instead of 1040 as an estate or trust, you must enter your EIN in place of SSN on line 2. Also, in the left margin, next to the EIN, enter as “estate” or “trust.”

Part II of Form 4868 – Individual Income Tax

 This Part requires information about the tax details. 

 When filing extension Form 4868, you can round off the estimated cents to whole dollars.  

To round the dollars, you can drop amounts under 50 cents and increase the amount from 50 to 99 cents to the next dollar. 

Line 4: Estimate of total tax liability for 2020

Provide the Total tax liability & Payment for the tax year 2020.

• Form 1040 or 1040-SR, line 16.

• Form 1040-NR, line 61.

• Form 1040-NR-EZ, line 17.

• Form 1040-PR, line 6.

• Form 1040-SS, line 6.

If you have zero tax liability, enter “0” in line 4 on your 4868 extension Form.

Line 5: Estimate of Total payments for 2020

Estimate the total payments you expect to pay and enter on line 5, to report it to the IRS:

• Form 1040 or 1040-SR, line 19 (excluding Schedule 3, line 10).

• Form 1040-NR, line 71 (excluding line 66).

• Form 1040-NR-EZ, line 21.

• Form 1040-PR, line 11.

• Form 1040-SS, line 11.

However, for Forms 1040-NR-EZ, 1040-PR, and 1040-SS, you don’t want to include line 5, the amount you’re paying with your Form 4868.

Line 6: Balance Due

Enter your total unpaid tax balance for the tax year. You can calculate this amount by subtracting Line 5 (Total 2020 payments) from Line 4 (Estimate of total tax liability for 2020).

In case the amount shown on Line 5 is greater than Line 4, enter “0” in this field.

Line 7: Amount You’re Paying with Your Tax Extension

After making calculations in line 6, you can even file for an extension if you can’t pay the amount shown on line 6.

But, it’s better that you pay as much as you can to limit the amount of interest you’ll owe. You will also be charged a late payment penalty for the unpaid tax from the regular due date of your return.

Line 8: Out of the Country

Check the box on line 8 if you’re out of the country on the original due date of your return.

Line 9: Form 1040-NR or 1040-NR-EZ Filers

Check the box on line 9 if you did not receive wages subjected to U.S. income tax withholding, and your return is due June 15, 2021.

How ExpressExtension help you to file 4868 Extension

If you need more time to prepare and file your federal tax return, get started with an IRS authorized provider like ExpressExtension. We provide a step by step guide to apply an extension of time to file your Individual, Business, and Exempt Organization Income Tax Returns.

Just follow the below steps to complete your individual tax extension online:

• Step 1: Choose the extension type (Either individual or joint filing) you would like to file.

• Step 2: Enter your personal details such as Name, Address, SSN

• Step 3: Enter your tax payment details if you owe any taxes

• Step 4: Review your Form

• Step 5: Transmit your Form 4868 to the IRS.

Once you transmit the return, you will get instant approval from the IRS. 

Do we leave you alone after filing with the IRS? No, we will notify you of any errors and rejections that we hear from the IRS immediately and allow you to make corrections and retransmit for free. No worries, our forms are simple for quick approvals!