Interest Charged on Balances Due Even with an Extension

File an extension but note there may be interest charged if you owe and no payment is made.

What You Need to Know

The Internal Revenue Service and each state with tax-filing requirements give a 6-month extension to file an individual tax return. Filing an extension does not mean you have an extension to pay. This year, the filing deadline has been pushed back to April 18th because of the observation of Emancipation Day.

What to Avoid

To avoid added interest and possible penalties for underpayment of taxes you need to make sure you have had paid, either through withholding or estimated payments, 100% of 2020 taxes that appeared on your individual 1040. You can make payments along with your extensions when you file online.

Filing for an Extension

To file an extension for an Individual 1040 for 2021 you may visit IRS.GOV and follow the prompts to file an extension and the option to make a payment. I recommend paying via bank draft as there are additional charges associated with using a bank or credit card.
Each state also allows you to file for an extension through their websites. Heads up — some states charge a hefty fee to do so. (NC charges $2 for every $100 paid via card!)

Happy Tax Day — stay tuned for more updates as we finalize our taxes for 2021!

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