How to File for a Delaware Tax Extension
A Delaware tax extension separates your filing and payment deadlines. Learn how to correctly handle your tax payment to satisfy state rules and avoid penalties.
An extension to file a Delaware personal income tax return moves the filing deadline from April 30th to October 15th, giving taxpayers several extra months to complete their returns. This is strictly an extension of the time to file and does not grant more time to pay any income tax. Any tax liability must still be paid by the original April 30th due date to avoid penalties and interest charges.
The Delaware Automatic Filing Extension
Delaware simplifies the extension process by granting an automatic extension to file until October 15th, provided certain payment conditions are met. The primary requirement is that a taxpayer must have paid at least 90% of their current year’s tax liability by the original April 30th deadline. This can be achieved through withholdings, estimated tax payments, or a direct payment.
If you have a valid federal extension and have already paid 100% of your Delaware tax liability by April 30th, the state extension is automatic with no further action needed. However, if you have a federal extension but still owe tax to Delaware, you must still meet the 90% payment threshold to secure the state extension.
Information and Forms for a Payment
If a tax payment is necessary to meet the 90% requirement, a taxpayer must first estimate their total tax liability for the year. This involves calculating total income, applying Delaware’s tax rates, and subtracting any taxes already paid. This includes Delaware income tax withheld by an employer and any quarterly estimated tax payments made during the year. The remaining amount is the balance that must be paid by the deadline.
To make a payment by check or money order, the Delaware Division of Revenue provides Form PIT-EXT, the Personal Income Tax Extension Payment Voucher. This form is not an extension request but is a voucher that must accompany a payment. The form requires basic information, including the taxpayer’s name, address, and Social Security number, along with the payment amount. The purpose of Form PIT-EXT is to ensure the payment is correctly applied, preventing processing delays. It is available for download on the Delaware Division of Revenue’s website.
How to Submit Your Tax Payment
A payment can be submitted by mail. The completed voucher and a check or money order made payable to the “Delaware Division of Revenue” should be sent to the address specified on the form. To ensure proper credit, it is advisable to write the tax year and “PIT-EXT” along with the primary taxpayer’s Social Security number on the memo line of the check.
Alternatively, taxpayers can make their payment electronically through the Delaware Taxpayer Portal. This online system allows for direct payments from a checking or savings account. To use this method, the taxpayer will need their bank’s routing number and their account number. The portal guides the user through making a payment, and paying online provides immediate confirmation that the payment has been submitted.
Filing After the Original Deadline
When filing the return, it should be completed by reporting all income and claiming all eligible deductions and credits. If you qualified for the extension by having a federal extension, you must check the appropriate box on your Delaware tax return to indicate this.
Failing to meet the extension requirements has financial consequences. If the 90% payment threshold was not met by the original April 30th deadline, a penalty for failure to pay is assessed. This penalty is calculated as a percentage of the unpaid tax for each month or part of a month the tax remains unpaid. Additionally, interest is charged on any unpaid tax from the original due date until the date it is paid in full.