Does Indiana Accept a Federal Tax Extension?
Learn how a federal tax extension applies to your Indiana state return. Understand the state's policy and the important distinction between filing and paying.
Filing a federal income tax return with the Internal Revenue Service (IRS) comes with the option for an extension, but how this affects state filing obligations can vary. Each state establishes its own procedures regarding tax extensions. Understanding Indiana’s distinct requirements is necessary for taxpayers to remain compliant with both federal and state tax laws.
Indiana’s Automatic Extension Policy
Indiana offers an automatic filing extension to taxpayers who have secured a valid federal extension. If you file Form 4868 with the IRS for an automatic six-month federal extension, the Indiana Department of Revenue (DOR) does not require you to file a separate state-specific extension form. This coordination simplifies the process for many taxpayers.
This automatic extension provides filers until November 17 to submit their Indiana individual income tax return. For those who do not need a federal extension but require more time for their state return, an Indiana-only extension can be obtained. This is accomplished by making a payment through the state’s online portal or by submitting Form IT-9 by the original filing deadline.
The Extension to File is Not an Extension to Pay
An extension provides additional time to file a return, not to pay the tax owed. The deadline for paying your Indiana income tax remains the original due date, typically April 15, regardless of whether a filing extension has been granted. Any tax liability not paid by this original deadline will begin to accrue interest.
The state will also assess a penalty on any tax paid after the original due date. However, this penalty may be waived if certain conditions are met. To qualify for a penalty waiver, you must pay at least 90% of the total tax you expect to owe by the original April deadline and pay the remaining balance when you file your return by the extended November 17 due date. Interest will still be calculated on the unpaid amount from the original due date until it is paid in full.
How to Make an Extension Payment
To avoid penalties and minimize interest, you must pay any anticipated tax liability by the original filing deadline. The Indiana DOR provides two primary methods for submitting a payment. One option is to make the payment by mail using Form IT-9, the Extension of Time to File Payment Voucher. You must complete the voucher and mail it with a check or money order postmarked by the tax deadline.
A more immediate method is to pay online through INTIME, the DOR’s tax management portal. This electronic system allows for direct payments and provides instant confirmation. The payment made with either method should be claimed as an estimated tax payment when the final return is filed.