There is no doubt about it, 2009 is going to be a tough year economically for most Americans. There has been a lot of talk about change, and the fact is, the tax code is up for changes, too. It doesn't take a lot of creative thinking to put the two situations together and figure out that working the tax code to your advantage is a good idea in an economy where every penny counts to every person.

Still, the decision to file for a tax extension should not be done lightly, and certainly not done in ignorance. If you think filing an extension gives you six more months to get your tax payment together, you're wrong. In fact, you have to make some tough choices here, and do at least a little arithmetic (no calculus!) to make it work to your advantage. That said, it might still be true that filing a tax extension is the best choice for you.

The right motivation

If you have until October 15th rather than April 15th that gives you time to ensure that you are getting every possible deduction for which you are eligible. In tough times, as we've noted, every cent counts. You simply must make sure that you are filing the tax return that is most advantageous to you, not to the government. Whatever you want to do for your country, paying more taxes than you owe is not an efficient way to do it. Take the time to do it right.

Now, mark those words, as they are key. You are filing an extension so you have time to get your return right, not to take a vacation or push the tax forms under the desk. If you do not have the right motivation, you should not file for an extension. In other words, if it's all the same, return-wise, and you're filing a 1040EZ anyway, there is no reason not to do it now.

The bottom line

Remember, whether you file a Form 4868 (Request for Extension) or not, any tax due you expect to owe is still due on April 15th (and it's March 15th for businesses). Now, here's where some math comes into it, in case you were planning, as many people do, to borrow money to make your tax payment. It may just be that the IRS late-payment fees and/or interest penalties work out to be less than the interest you'd pay on that loan. It may be less than interest you are paying on other debt, too. So, by filing for an extension, you won't have to pay interest on that tax liability for another six months, and it may be negligible in comparison to the important uses you might have for the funds in the meantime.

And don't forget that the President and the Congress are already (make that, always) tweaking the tax code. Although few things will likely change in the short term, there is little harm (all things being equal) in waiting to take advantage of any new deductions, credits or incentives. Waiting will hurt you very little, and it could help you quite a bit, actually.

Life calls, too

It may be that you have a lot going on right now, too, and would have to hurry to file, with all the possible problems that haste could introduce into the equation. If you are in a tizzy over filing, or don't have all your paperwork together to do it right, then getting some extra time to do the return calmly and correctly can make good sense in more than just economic ways.

Maybe you've lost a job, had a death in the family, incurred a lot of medical expenses or had some other "life changing" occurrence. It may well be that you need time to file a kind of return you've never filed before, which means new kinds of research on your part, or getting help filing when you've always done it yourself before. If your tax status is in flux, or you are one of the many small business owners who has had to downsize or (heaven forbid) go out of business, then you are facing some real complications-and your tax return is only a part of the problem. Put things in order and get extra time where you can. Filing for an extension is available for you to do because even tax collectors know what can happen in people's lives. Don't forget, the IRS has humans working there, too.

Making the decision

If things are looking tough right now, make things easier for yourself where you can. As long as you are able to pay the amount you will expect to owe when you do file later, you are in good shape. If you have a problem getting an exact figure, then err on the side of safety and "round up" instead of down. And if you are confused and perplexed, by all means get some professional help if the amount involved is in any range that you consider "serious money." Frankly, for some people that means any amount, whereas in a higher tax bracket you will need to decide if hassling over a few hundred dollars is worth it.

The fact is, you can't lose much by filing for an extension, and if you are honest with your filing and your figures, you will once again prove that it is the best policy. Actually, when dealing with the IRS, honesty should be the only policy! So if you are honestly at wit's end about filing this year, give yourself a break and take the extra time to do it with calmness, confidence and correctness. You will be glad you did.