Keep in mind that the Apr. 18 tax deadline is only a few days away. The IRS had already issued over 63 million tax refunds to Americans as of Apr. 1, with an average payout of $3,226.

Don't worry if you can't finish and file your tax return by Apr. 18. You can get additional six months to finish your taxes by filing a simple tax extension. However, while a tax extension is free and may provide needed breathing room, you will be postponing any potential tax refund, and you will still be responsible for paying any projected taxes owed when you submit the extension.

This year's tax refund could include more money than you expected. The remainder of your enhanced child tax credit money, reimbursement for child care expenses, and possibly more stimulus check money will be included in your tax refunds in 2021.

While an extension gives you more time to file your return, most tax experts advise against it unless you're missing important tax information or are simply unable to file taxes due to illness, travel, or other circumstances. Continue reading to find out how to file a tax extension and how much money you could be losing if you don't.

For more information, see how to file your taxes for free and track your IRS tax refund after you file.

If you want to file a tax extension this year, you must submit Form 4868 (PDF) to the IRS by the Apr. 18 deadline, either on paper or electronically using an e-file. You must still pay all or part of your anticipated income tax due using Direct Pay, the Electronic Federal Tax Payment System, or a debit or credit card, and you must also state that you are filing for an extension.

Some taxpayers are automatically granted an extension of time to file. This includes military personnel serving in a war zone as well as residents of federally declared disaster zones.

When taxpayers fail to meet their deadlines, the IRS likes to slap them with penalties and interest. On any unpaid taxes, the late filing penalty is 5% per month. This is limited to a maximum of 25% of unpaid taxes. Those who file on time but fail to pay on time will be subject to a failure to pay a penalty of 0.5% of unpaid taxes per month. This will continue until you are caught up.