How to File an Extension on Your Taxes

A tax extension provides additional time to submit your tax return, but it is not an extension to pay any taxes you owe. Any tax liability is still due by the original April deadline, and failing to pay by this date can result in interest and penalties. The purpose of the extension is to allow more time to gather documents and accurately complete your return.

Automatic Extensions for Certain Taxpayers

While most people must request an extension, some taxpayers receive one automatically. U.S. citizens and resident aliens who live and work outside the United States and Puerto Rico receive an automatic two-month extension. Members of the military serving in a combat zone are also granted an extension for at least 180 days after they leave the zone.

For most of these automatic extensions, the deadline to pay your taxes is still the original due date, and interest will be charged on any unpaid tax.

Information and Decisions for Filing an Extension

Before requesting an extension, you must gather personal information and estimate your tax liability for the year. You will need your full name, address, and Social Security number for yourself, your spouse, and any dependents. The request is filed using Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

A part of preparing for an extension is calculating your estimated tax liability. A method for this estimation involves reviewing your prior year’s tax return and comparing it with your current year’s income documents, such as W-2s and 1099s. You should also account for any estimated tax payments you have already made or federal income tax withheld from your paychecks.

The form requires you to report your total estimated tax liability, the amount of tax already paid, and the resulting balance due. This estimate determines the payment you should submit with your request to minimize potential penalties and interest.

How to Submit Your Extension Request

There are several methods for submitting your extension request.

• E-file through tax software or with the assistance of a tax professional. These programs guide you through the process, often transmitting the necessary information from Form 4868 electronically to the IRS.
• Use the IRS Free File system, which allows you to request an automatic extension at no cost, regardless of your income level. This service is accessible through the IRS website.
• Secure an extension by making an electronic payment. When using systems like IRS Direct Pay or paying with a debit or credit card, you can designate the payment as being for an extension. This action automatically processes your request for more time to file without needing to submit a separate Form 4868.
• Mail a paper Form 4868. You must ensure you are sending the form to the correct IRS mailing address, which varies depending on your geographical location and whether you are including a payment.

State Tax Extension Requirements

Filing for a federal tax extension does not always extend your deadline for state taxes, as each state has its own rules. Some states will automatically grant an extension if you have successfully filed for a federal one, requiring no separate action. Other states, however, mandate that you file a specific state extension form.

You should verify the procedure for your specific state on the website of its department of revenue or equivalent tax agency.

What Happens After You File

Upon successfully filing for an extension, you are granted more time to submit your federal tax return. The new deadline is October 15, but if that date falls on a weekend or holiday, the deadline shifts to the next business day.

This extension does not change your payment deadline. Any tax amount not paid by the original April deadline will begin to accumulate interest and may be subject to a late payment penalty. The IRS calculates interest on the unpaid amount from the original due date.