The Internal Revenue Service on Friday offered some last-minute tips and reminders on filing taxes, noting that April 18 is also the deadline to make 2021 contributions to individual retirement accounts.
Contributions can be made to a traditional or Roth IRA until the filing due date, April 18, but must be designated for 2021 to the financial institution, the IRS states.
For more information, see Retirement Plans FAQs Regarding IRAs or Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
The IRS estimates 15 million taxpayers will request an extension of time to file and the easiest way to request an extension to file is using IRS Free File.
In a matter of minutes, the IRS said, "anyone can request an extension until Oct. 17, using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return."
But an extension of time to file is not an extension of time to pay, the IRS points out, "and taxpayers must estimate their tax liability on this form and pay any amount due by the April 18 filing deadline to avoid penalties and interest."
Taxpayers can also request more time by paying all or part of their estimated income tax due and indicate that the payment is for an extension by using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a debit, credit card or digital wallet, the IRS states.
"This way they don't have to file a separate extension form and will receive a confirmation number for their records," the IRS said.
