Video: Filing Status - Tax Return Extensions

In this lesson, dive into the ins and outs of tax return extensions, which can be valuable under different circumstances. Nick Palazzolo, CPA, clarifies the process and deadlines for requesting extra time to file an income tax return, including the additional six-month period leading up to October 15th. He elucidates the critical point that while an extension grants more time to file, it does not extend the period to pay any taxes due, emphasizing the importance of understanding the implications of underpayment, such as penalties and interest accumulation. Nick also discusses practical scenarios where an extension might be advantageous, and strategies for taxpayers who expect to owe, illuminating the nuances of utilizing extensions to make wise financial decisions.