Finance

Applying for a tax extension in 2024: Everything you need to know

Published

10 months ago

April 2, 2024

Freedomworks Chief Economist Steve Moore discusses how the top 1% pay almost half of all federal income taxes on ‘The Bottom Line.’

The deadline to file your taxes is quickly approaching. For 2024, the deadline to file is Monday, April 15.

If you are unable to file your taxes by this date, don’t panic, because you can get a tax extension. This gives you additional time to get your information filed.

Read on to learn more about tax extensions.

ALL ABOUT TAX REFUNDS: TIPS FOR RECEIVING YOUR REFUND FAST

What are they?
How can I apply for one?
How do I qualify?
Is there a penalty if you file an extension?

If you are unable to file your taxes by the deadline, you can apply for a tax extension. (Al Drago/Bloomberg via Getty Images / Getty Images)

1. What are they?

If you are unable to file your taxes before the April 15 deadline, you can apply for a tax extension. There are some misconceptions about an extension, so it is important to understand exactly what it is.

A tax extension does not mean you get an extension to pay what you owe to the IRS. Anything that you owe in taxes is still due at the deadline, although there are payment plans available. You must apply for a tax extension by the April 15 deadline.

A tax extension gives you more time to complete your return without getting the penalty, which is 5% of your unpaid taxes per month that a return is late, up to 25%, according to IRS.

DO YOU NEED TO INCLUDE PAYMENTS FROM THIRD-PARTY PROCESSORS LIKE VENMO AND PAYPAL IN YOUR TAX FILINGS?

Common reasons why someone may need a tax extension, include needing more time to gather 2023 information or extenuating circumstances, like a death in the family, Jason Schwitzer, a CPA and managing partner at Nathen T. Schwitzer & Associates, told FOX Business.

Filing for an extension doesn’t mean you get more time to pay your taxes, just more time to file. (iStock / iStock)

2. How can I apply for one?

Filing for a tax extension is a fairly simple process that can be done electronically.

“Most individual taxpayers would file Form 4868, ‘Application for Automatic Extension of Time to File U.S. Individual Income Tax Return,'” Schwitzer said. “Most states accept the federal extension, but some, for example, New York, require a separate state extension.”

3. How do I qualify?

There are no qualifications to be granted a tax extension.

“All taxpayers would qualify as long as it’s filed/postmarked by April 15,” Schwitzer explained.

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You will not get your tax refund until you have filed. (Scott Olson/Getty Images / Getty Images)

4. Is there a penalty if you file an extension?

There is no penalty for filing for a tax extension, so long as the extension is submitted on time.

If you are expecting a refund, you will not receive that until your taxes are filed. The quickest way to file your taxes is electronically, according to the IRS.

Finance

NFLX, UAL, IBKR and more

Published

15 hours ago

January 21, 2025

Business Finance News

Finance

David Einhorn says we have reached the ‘Fartcoin’ stage of the market cycle

Published

17 hours ago

January 21, 2025

Business Finance News

David Einhorn, President at Greenlight Capital, speaking at the 14th CNBC Delivery Alpha Investor Summit in New York City on Nov. 13th, 2024.

Adam Jeffery | CNBC

Greenlight Capital’s David Einhorn thinks speculative behavior in the current bull market has ascended to a level beyond common sense.

“We have reached the ‘Fartcoin’ stage of the market cycle,” Einhorn wrote in an investor letter obtained by CNBC. “Other than trading and speculation, it serves no other obvious purpose and fulfills no need that is not served elsewhere.”

A crypto token called “fartcoin” exploded in popularity as the re-election of Donald Trump unleashed a storm of animal spirits on Main Street. The meme coin is now edging towards a $2 billion market value, surpassing many U.S.-listed companies.

More meme coins have emerged since the inception of fartcoin. President Donald Trump launched $TRUMP, a meme coin built on the Solana platform. Its market cap over the weekend climbed past $14 billion. The coin at one point was down more than 20% over the past 24 hours, but it has since cut its losses to around 3%. Trump’s wife Melania also unveiled a coin.

“Nothing stops the launch of many more tradable coins,” Einhorn said. “Perhaps we are leaving the Fartcoin stage of the market and entering the Trump (and Melania) memecoin stage. It’s anyone’s guess as to what will happen next, but it feels like it’s going to be wild.”

Einhorn’s letter comes as investors drive equities higher, buoyed by expectations of lower taxes and deregulation from the second Trump administration. On Tuesday, the day after the inauguration, the Dow Jones Industrial Average rallied more than 400 points. The S&P 500 and Nasdaq Composite climbed 0.8% and 0.7%, respectively.

Shorting leveraged bitcoin ETFs

Greenlight took advantage of the craziness around crypto during the fourth quarter by betting against some popular ETFs linked indirectly to bitcoin.

The two funds the firm focused on were the T-Rex 2X Long MSTR Daily Target ETF (MSTU) and the Defiance Daily Target 2X Long MSTR ETF (MSTX). Those funds use derivatives to try to achieve two-times the daily returns of MicroStrategy, a software company that has turned itself into a bitcoin treasury vehicle in recent years.

The funds have at times struggled to achieve that goal due to MicroStrategy’s volatility and little supply of the derivatives most easily used to get the leveraged returns.

The letter said Greenlight took short positions against those funds during the quarter, partially offset by owning MicroStrategy stock in an arbitrage trade that was a “material winner.”