How to File a Colorado State Tax Extension
Understand Colorado's automatic tax filing extension. This guide clarifies the payment process and requirements needed to validate your extension if you owe.
A state tax extension provides additional time to submit your income tax return, but it is not an extension to pay any taxes you owe. Missing the payment deadline can result in penalties and interest. The late payment penalty is 5% of the unpaid tax, plus 0.5% for each month or part of a month the tax remains unpaid, up to a maximum of 12%. Interest is also charged on the underpayment.
The Colorado Automatic Filing Extension
Colorado provides an automatic six-month filing extension to all individual income taxpayers, which means no specific form is required to request it. This moves the filing deadline from April 15 to October 15 for most individuals. If the due date or the extended date falls on a weekend or a legal holiday, the deadline shifts to the next business day.
The implications of this automatic extension depend on whether you owe state taxes. If you anticipate receiving a refund or owe no state tax, you do not need to take any action for the extension. You can file your Colorado Income Tax Return (DR 0104) anytime before the October 15 deadline.
For the extension to be valid when taxes are owed, you must pay at least 90% of your total Colorado tax liability by the original April 15 deadline. Failure to meet this 90% payment threshold will invalidate the filing extension and can subject you to late-payment penalties. Any remaining amount owed will accrue interest until it is paid in full, even if the 90% threshold is met.
Required Information for an Extension Payment
To make a payment with your extension, you will need your full name, current mailing address, and Social Security Number (SSN). You must also identify the tax year for which you are making the payment.
You will need to estimate your tax payment amount by calculating your total anticipated tax liability for the year. The worksheet provided with Form DR 0158-I, the Extension Payment Form, can help you calculate if a payment is needed to meet the 90% requirement.
Form DR 0158-I can be downloaded from the Colorado Department of Revenue’s website. You will enter your estimated payment amount on the form before submitting it.
How to Submit an Extension Payment
You have two primary methods for submitting an extension payment. The first is to pay by mail, which requires you to include the completed Form DR 0158-I with your payment. Your check or money order should be made payable to the “Colorado Department of Revenue.”
The completed voucher and payment should be mailed to the Colorado Department of Revenue, Denver, CO 80261-0008. The payment must be postmarked by the April 15 deadline to be considered timely. It is a good idea to keep a copy of the form and proof of payment for your records.
You can also pay online through the state’s “Revenue Online” portal. On the portal, select the option to make an “Estimated Tax Payment” for the relevant tax year. You do not need to file Form DR 0158-I if you pay electronically, and the online submission must be completed by 11:59 p.m. on the tax deadline.