Does Colorado Accept a Federal Tax Extension?
Unravel Colorado's stance on tax extensions, detailing federal applicability, state-specific procedures, and payment considerations for timely compliance.
Tax extensions offer taxpayers additional time to prepare and submit their income tax returns. This extra period can be beneficial for individuals who need more time to gather necessary financial documents, resolve complex tax situations, or simply ensure accuracy before filing. While an extension provides relief from the immediate filing deadline, it is important to understand that it typically pertains only to the time allowed for submitting the return, not the deadline for paying any taxes owed.
Colorado’s Position on Federal Extensions
Colorado aligns with the federal system for individual income tax extensions. If an individual files a federal tax extension using IRS Form 4868, Colorado automatically grants a corresponding state tax extension. This means taxpayers do not need to file a separate form with the Colorado Department of Revenue to extend their filing deadline. However, this automatic extension from the federal filing does not apply to the payment of taxes.
A separate Colorado extension is automatically granted for six months to file personal income tax returns, moving the April 15 deadline to October 15. This automatic extension applies to all taxpayers, and no specific application or form is required to request it.
Key Dates and Requirements for Colorado Extensions
The original due date for filing a Colorado individual income tax return is April 15. If an extension is utilized, the new filing deadline becomes October 15.
To avoid penalties, taxpayers must pay at least 90% of their total estimated tax liability by the original April 15 deadline. If this 90% threshold is met, any remaining balance due will only be subject to interest, not late payment penalties. Failure to pay the required amount by the due date can result in penalties.
Filing a Colorado Extension
While Colorado automatically grants a six-month extension for filing, taxpayers who anticipate owing state income tax must ensure their payment is made by the original April 15 deadline. If a payment accompanies the extension, it can be submitted electronically or by mail. Electronic payments can be made through the Colorado Department of Revenue’s Revenue Online portal, which offers a secure method for managing tax responsibilities.
Alternatively, taxpayers can mail their payment with Form DR 0158-I, the Extension Payment Voucher for Individuals. If paying electronically, there is no need to submit Form DR 0158-I. Taxpayers can use the worksheet provided on Form DR 0158-I to help estimate their tax liability and determine the amount to pay.