Does NY Accept a Federal Extension for Individuals?
Understand New York State's policy on individual tax filing extensions, including federal acceptance and payment requirements.
A tax extension provides individuals with additional time to prepare and submit their income tax return. An extension to file does not automatically grant an extension to pay any taxes owed. Its primary benefit is to help taxpayers avoid late filing penalties.
New York’s Approach to Federal Filing Extensions
New York State does not automatically accept a federal tax extension (Form 4868) in place of its own state-specific form for individual income tax filers. While some states may have reciprocal agreements, New York explicitly requires a separate application for an extension of time to file your state return. This means that even if the Internal Revenue Service (IRS) grants you an extension, you must still take a distinct step to secure an extension with the New York State Department of Taxation and Finance.
Federal forms like Form 4868 are no longer accepted as substitutes for New York’s specific extension forms. Individuals needing more time to file their New York State income tax return must use the appropriate state form to ensure compliance. The need for a separate New York form applies even if you do not anticipate owing New York income taxes or expect a refund.
Steps to Secure a New York Extension
To obtain a New York State tax extension for individuals, the specific form required is Form IT-370. This form grants an automatic six-month extension, typically moving the filing deadline from April 15 to October 15 for calendar year filers. The official form and its instructions can be accessed and downloaded directly from the New York State Department of Taxation and Finance website.
When completing Form IT-370, you will need to provide essential taxpayer information, including your full Social Security number and the relevant tax year. You must also mark the box for each tax type you are subject to, such as New York State income tax. It is necessary to estimate your total New York State tax liability for the year and indicate any payments already made, including withholding or estimated tax payments. The form requires you to calculate any remaining balance due, as this amount generally needs to be paid when filing the extension request.
The completed Form IT-370 can be submitted electronically through the New York State Department of Taxation and Finance’s Online Services. Alternatively, you may choose to mail the completed form to the address specified in the form’s instructions. The extension request, along with any payment due, must be filed by the original tax deadline to be considered timely.
Obligations for Tax Payments with an Extension
An extension of time to file an income tax return does not extend the time to pay the tax liability. All estimated tax payments must be made by the original April deadline to avoid penalties and interest. Failing to pay your tax liability by the original due date, even with an approved extension, can result in penalties.
New York State assesses penalties for late payment and underpayment of estimated taxes. The late payment penalty is generally 0.5% of the unpaid amount for each month or partial month it remains unpaid, capped at 25% of the initial tax bill. Additionally, interest is charged on underpayments, typically at a rate that is adjusted quarterly, and this interest accrues from the original due date until the tax is paid. An underpayment penalty may apply if your total payments (through withholding and estimated taxes) are less than 90% of the current year’s tax liability or 100% of the prior year’s tax liability, whichever is smaller.
To make a tax payment to New York State when an extension has been granted, several options are available. The most convenient method is often through the New York State Department of Taxation and Finance’s Online Services, where payments can be made directly from a bank account or by credit card, though a convenience fee may apply for credit card payments. Taxpayers can also mail a check or money order along with Form IT-370-V, Payment Voucher, ensuring their Social Security number and the tax year are clearly written on the payment. It is important to note that simply mailing a payment voucher is not sufficient; an extension application must also be filed if you need more time to file the return.