Form 4868 Instructions - All You Need to Know!

 If you need more time to complete and file your individual income tax return 1040 to the IRS, file Form 4868. Filing form 4868 gives you a lot of advantages. First and foremost, this form allows you to get additional time to complete and file your income tax return. So, if you are looking to file your form 4868 but worried about how to complete it, here are the step-by-step Form 4868 instructions that ease your work of filling and transmitting it to the IRS.


  1. Purpose of a Personal tax extension


Personal tax extension form 4868 gives you additional time to file your federal income tax return 1040.


When any U.S. individual does not have the necessary information to prepare and file 1040, return to the IRS. In such cases, the U.S. individuals can submit form 4868 to the IRS to request an automatic 6-month extension of time to file their Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, or 1040-SS.

This includes contractors who file 1099s, as well as single-member LLCs and Schedule C Sole Proprietors.

Please note, filing a 4868 extension gives you additional time to file your income tax return and does not extend the time to pay tax dues. You may also be charged penalties if you don’t pay the amount due by the actual due date.

 

  1. Personal tax extension deadline for 2020


Recently, the Treasury Department and Internal Revenue Service have officially announced that the federal income tax filing due date for individuals will be automatically extended from April 15, 2021, to May 15, 2021. 


So, you are required to file the personal tax extension by May 17, 2021 (As the due date falls on Saturday, the due date will be the next business day). Filing this extension form 4868 on May 17, 2021, you are able to get additional time up to October 15, 2021. 


  1. How to file Form 4868?

You can file IRS Form 4868 either electronically or through the paper.

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

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

  1. Line by Line Instructions to file IRS Form 4868

Form 4868 instructions have two parts. Here are the step-by-step instructions you need to follow to complete Part I and Part-II of Form 4868 to file with the IRS.

  1. Part I of Form 4868- Identification

Line 1: Name and address

Line 1 is used to get your basic information such as 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.

If any changes occurred in your name due to marriage, divorce, or any other personal reason. You need to notify the Social Security Administration (SSA) before filing Form 4868 so that you can avoid rejections and application process delays. 

In case 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)

If 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 determine 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 good 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 subject to U.S. income tax withholding, and your return is due June 15, 2021.

5. Efile Form 4868 with ExpressExtension

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 instruction to file your extension to get additional time to file your personal Tax Returns.

Just follow the below steps to complete your persona 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 an instant status from the IRS. In case, your transmitted extension is rejected by the IRS, we help you correct and retransmit it free of cost!

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