How to E-File Your Federal Tax Extension Online For Free
It’s almost April 15th, and you haven’t done your taxes yet. Time to file an extension! The IRS automatically grants a 6-month extension, as long as you ask. Websites like FileLater.com will charge you $17.95 to file the form for you. But below are two ways that anybody can e-File for free. Apparently, the only thing keeping these sites in business is lack of education! However, they do have a helpful section on state tax extensions.
Method #1: TaxAct
This is how I did my extension last year. Just sign up with TaxAct and e-file your extension for free through them. You don’t even need to actually use them to file your taxes later. TaxAct is already free for federal taxes with e-File regardless of income*, and is only $13.95 for state returns with free e-File. That’s cheaper than TurboTax or TaxCut, although if you’re already familiar with those programs it may be worth the extra bucks to stick with them.
Method #2: Free File Fillable Forms
Go to the Free File Fillable Forms site (say that 5 times fast) and click on “Start Free File Fillable Forms”. Click “Sign-in” on the top left, and create a new account.
After you’re signed in, click on “Continue” and pick your form. Go with 1040. On the top right, you should see an icon with the label “File an Extension”.
This will bring up Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, a long title for a really short form. You’ll need to estimate your total tax liability for 2008. This form only extends the time to file, not the time allowed to pay. Overestimate your tax liability to avoid penalties. Here is how I estimated my tax liability last year.
You can even request your estimated tax payment to be withdrawn electronically by supplying your bank’s routing and account numbers. For identification purposes, you’ll need your adjusted gross income (AGI) from your 2007 tax return.
* Here are some more free tax filing options, along with any restrictions.
April 10th, 2009 at 8:17 am
I’ve never understood the benefit of an extension. Taxes are very easy to do (especially with TaxAct) and after receiving all my forms in January, I have 3 months to complete the forms, file and pay. As I understand it, you still have to pre-pay taxes when filing an extension or else pay a fee.
So what benefit do I have for filing the extension, besides the buzz of procrastination for a few more months?
April 10th, 2009 at 8:22 am
[...] If you’re short on time to file your taxes this year, head over to My Money Blog and read about how to e-file your tax extension for free. [...]
April 10th, 2009 at 8:25 am
Some people with complex tax situations may need more time to sort it out. IRA re-characterizations, stock option grants/exercises, exotic deductions. It’s not all W-2’s and 1099’s for everybody.
April 10th, 2009 at 11:44 am
Hi,
My name is Jeff and I work at FileLater. I wanted to respond to this article with a few thoughts.
First, we believe in ‘you get what you pay for.’ FileLater is the only site that proudly promotes email, chat, and phone support. We also go WAY beyond any of our competitors to ensure your tax extension is approved. We call the IRS daily, mail forms to the IRS when applicable, etc. In short, we do everything we can to ensure our customers’ extensions are approved, so they can avoid the 5% monthly late filing penalty… that’s why our IRS approval rate is over 98%. As you mentioned, we’re also the only site that provides state level information and forms for both business and personal tax extensions, so our customers don’t get surprised with any state-level tax penalties
We take pride in the service we provide to our customers, and get a lot of great feedback from them (http://www.filelater.com/testimonials.html). Although some extension services may be cheaper, there are also others that are MUCH more expensive… and we truly believe that our service is well worth the price.
Feel free to contact me with any questions: jeff@filelater.com
Thanks!
April 10th, 2009 at 12:22 pm
Let’s not forget that the IRS has a phone number (toll-free) where you can call and get the extension automatically. As for the state taxes, at least in my state you can mail in the extension request once you have called the IRS. All free except the $0.45 stamp.
April 10th, 2009 at 2:00 pm
I file an extension every year. I own two businesses. Both of them are busiest in Q1, so I have no time to get my stuff together by April 15. Making sure I’m profitable around that time is too important to me. And I can’t file my individual extension until my business taxes are done. Thus, my reason for the extension. And I know a lot of other biz owners who do the same thing.
Good luck calling the IRS phone number! It’s impossible to get someone on during the busiest time of the year.
e-filing it thru a website is worth it. That confirmation from the IRS is a must. I trust that more than I do sending something in the mail these days.
April 10th, 2009 at 10:01 pm
I’ve used the IRS phone number; it’s a particular number they have to handle extension requests. It’s automated. You don’t have to interect with a human at all.
April 11th, 2009 at 7:10 am
Harish,
I think that number was disconnected 2 years ago. Now, if you want to us the phone you have to call Official Payments or Link2Gov. The can extend on the phone, but only if you make a tax payment through their service, and they charge a “convenience fee” of 2.5% of what you owe.
Most “free” tax services have hidden fees.
April 11th, 2009 at 9:45 am
I need that phone number for extensions at the IRS. Anyone?
April 12th, 2009 at 12:15 pm
Based on this information from the IRS (http://www.irs.gov/taxtopics/tc304.html), I don’t think there is a phone option.
April 13th, 2009 at 10:48 am
Even if you extend, it is still worth paying as much as possible to avoid late payment penalities. Extension does not mean no taxes due,. Also to the previous commenter, you need to submit a form which you can only do online or via mail.
April 13th, 2009 at 3:42 pm
Thanks for the dead lead, Harish! I called the IRS, and after 30 minutes of being on hold, they said either send in the form, or use an online provider (that whole Authorized IRS e-file thing).
I tried the Free File Fillable Forms (mouthful!) and couldn’t even get past the annoying account setup page… it kept rejecting that automated verification code at the beginning.
Amen to FileLater for having an easy solution that actually gets the job done. WELL worth the $20!
April 14th, 2009 at 10:22 am
[...] How to E-File Your Tax Extension Online For Free [...]
April 14th, 2009 at 11:55 am
2008 e-file extension that I have used for a few years now.
$1.00 link2gov fee
no “account setup”
easy as making a purchase online.
https://www.pay1040.com
April 14th, 2009 at 9:19 pm
I found this which is free (not sure if you have to be a TurboTax user, since I gave it my login):
https://extension.intuit.com/extexp/ExtFiling.html?priorityCode=4558400000
It’s EASY
April 15th, 2009 at 2:00 pm
E-File federal tax extention of time.
April 15th, 2009 at 8:18 pm
Mike- Thanks! Turbo Tax provides free extensions online. I wasn’t previously a Turbo Tax user and had to create a login. It was EASY and FREE!
April 15th, 2009 at 10:59 pm
The advantage to filing an extension is when you can’t afford your taxes and you pay some now and some later. It’s for people who are toeing the line…! (like me!)
April 15th, 2009 at 11:40 pm
Thanks Mike for the tip!! I was a TurboTax user, and missed this service - it was easy, and such a relief.
April 16th, 2009 at 11:08 am
Jonathan, Thanks for a useful website. I used TaxAct to file extension. I have not received any mail/communication. Should I expect any communication from IRS or is there place to verify that the extension has been approved. Thanks in advance