A tax extension offers an additional six months to file your tax return beyond the initial deadline of April 18th.

It's important to note that filing a tax extension only extends the deadline to file your tax return. It does not extend the deadline to pay any taxes owed. If you file for an extension and fail to pay any taxes owed by the original deadline, you may be subject to penalties and interest charges.

These penalties and interest charges can add up quickly, so it's important to pay as much as you can by the original deadline and then work with the IRS or state tax agency to set up a payment plan or explore other options for resolving your tax debt.

It's also important to note that filing for an extension does not increase your chances of being audited by the IRS or state tax agency. However, if you do make mistakes on your tax return or fail to pay the taxes owed, you may be more likely to be audited or face penalties and interest charges.

Some factors that could impact whether you owe taxes this year include:

• Changes to your income

  • If you’ve had a significant increase or decrease in income, it could impact your tax liability.

• Changes to deductions and credits

  • Tax laws change from year to year, and changes to deductions and credits could impact your tax liability.

• Withholding adjustments

  • If you adjusted your tax withholding during the year, it could impact your tax liability.

• Other factors

  • Other factors, such as changes to your filing status, dependents, or other life events, could impact your tax liability.

MG TAX INC always recommends that if you owe taxes, you should estimate and pay the amount owed when you file for an extension. The amount recommended is usually equal to the amount owed for the previous year. If you overpay the amount paid with your extension, you will receive a refund when the completed return is filed. Filing an extension only gives you more time to file your tax return, it does not give you more time to pay any taxes you owe.

If you don't pay the estimated amount owed by the tax deadline, you may be subject to penalties and interest on the unpaid balance.

However, if you are owed a refund or expect to owe no taxes, you do not need to make a payment when filing for an extension.