File Tax Extension Online
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Question: How to file for an extension on taxes owed?
I have already filed my taxes online and owe approximately $300. I quit my job last week and don’t know if I will have that much by the 18th. How can I file for an extension on payment?
Answer: With only $300 outstanding, do NOT go through the expense of a payment plan! You CAN ask for a 120 day extension of time to pay without the cost of setting up a payment plan.
The IRS will still tack on penalties and interest for late payment but your total out-of-pocket cost will be MUCH lower than if you set up a payment plan for that small debt. Merely setting up a payment plan costs between $52 and $105, on top of the penalties and interest for late payment.
Pay as much as you can by April 15th to minimize the fees. You’ll get a bill from the IRS in a couple of weeks. Pay as much as you can then. If it’s not paid in full the IRS will just send you monthly statements until it’s paid. As long as you clear it by August 15th you can skip the cost of a payment plan.
New California Laws For 2010
Summary of New California Laws for 2010
How to complete a tax return with TaxBrain
