How to Apply for a Tax Extension

What is a tax extension?

A tax extension is a request for extra time to file your personal or business tax return with the IRS. An extension will generally give you an additional 6 months to file. This means that if you file an extension for your individual tax return due April 15, you will now have until October 15 to prepare your tax return.

How do you file a tax extension?

There are several ways to file a tax extension. The first is to file Form 4868 in paper form. This would involve printing the form from the IRS website, filling out the form, and then mailing it to the IRS. The second way to file an extension is through standard consumer tax software such as TurboTax or TaxAct. The third and final option would be to have your tax preparer electronically file the extension on your behalf.

When is the deadline for filing a tax extension?

The deadline for filing a tax extension is the same as the regular deadline for filing a tax return. For individual tax returns, the deadline for most years will be April 15.

Does an extension give me more time to pay my taxes?

One very important concept to understand is that extensions give you more time to file your tax return, but not more time to pay any taxes due. Before filing an extension, you will want to try and get an idea of your total tax liability for the year and the tax you have already paid through withholding and/or estimated quarterly payments. If your tax liability for the year is greater than your payments, you will want to make a payment with your extension. As an example, say your tax liability for the year is $10,000 and you had $8,000 withheld from your paycheck. In this case, you will want to make a $2,000 payment with your extension to cover the difference. If you are in a situation where your withholdings and quarterly payments are greater than your tax liability, you do not need to make a payment with the extension. It is in your best interest to calculate this extension payment correctly, as you will be on the hook for interest and penalties on any underpayments.

Do I have to file a separate extension for my state tax return?

If you need additional time to prepare your federal tax return, it is almost certain that you will also need a similar extension of time for your state tax return. Rules for these extensions vary by state, so it is important to look up the rules for your specific state or discuss with your CPA. Some states, including California, provide an automatic 6-month extension to file your tax return with no forms required. Many states will simply accept a federal tax extension and do not require a separate state tax extension to be filed. Lastly, there are some states that do require you to file a state-specific extension if you need additional time to file. Similar to the federal extension, these state extensions provide you with additional time to file but not additional time to pay.

This article was written and reviewed by Chad Gaines, CPA