Tax Extension: What It Is and How It Works
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Editor's Note: The final day to request a tax extension for 2023 income tax returns was April 15, 2024. If you requested an extension by this date, your new filing deadline was Oct. 15, 2024.
Requesting a tax extension is relatively straightforward — as long as you are mindful of the cut-off date. Taxpayers are able to file for an extension electronically or when making an estimated tax payment. Extension requests can also be mailed in.
What is a tax extension?
A tax extension is a request for an additional six months to file a tax return with the IRS. Extensions typically move the filing deadline from mid-April to mid-October.
Filing a tax extension can help people who may be missing important tax documents or who need extra time to complete their paperwork. It can also help filers avoid a late-filing penalty.
» Jump to how to file a tax extension
When is the 2024 tax extension deadline?
April 15, the last day to submit an extension request for 2023 returns, has passed. If a tax return is filed after this date without a valid extension attached to it, the IRS considers the return late. Penalties and fees will start to accrue if you have a tax bill.
If you are an American citizen living abroad, the federal deadline to file your 2023 income tax return or to request a four-month extension was June 17, 2024.
How tax extensions work
A common misconception about tax extensions is that they buy you additional time to pay your tax bill. In reality, a tax extension only pushes out your filing deadline, not your payment due date.
Even if you filed for an extension, taxes owed were still due by April 15. If you need more time to deal with a tax bill, the IRS offers payment plans that can help you pay off your balance in increments over time.
How to file a tax extension
There are several options for requesting a free tax extension, including e-filing Form 4868 or making an estimated tax payment by the tax deadline.
IRS Free File: Free File is an IRS tax preparation service for taxpayers who make below a certain income, but anyone — regardless of income — can go to the IRS website to file a free extension through the program.
Tax software: If you plan to use tax software, most providers support filing Form 4868 for tax extensions. You can simply follow the program’s instructions and see how to file a tax extension electronically. The IRS will send you an electronic acknowledgment when you submit the form.
Tax preparer: If you plan to work with a CPA or other tax preparer, ask if they can file for an extension on your behalf.
By mail: You can apply for a tax extension on paper by filling out Form 4868 and sending it to the IRS through the Postal Service. Make sure to get proof that you mailed it, and note that it must have been postmarked by April 15.
Direct Pay: Because a tax extension only gives you more time to file, not more time to pay, it's a good idea to estimate your taxes owed and make a payment along with your extension request. IRS Direct Pay allows you to note that you're requesting an extension while you're making that payment, which does away with you having to submit Form 4868 altogether.
» Still need to file? See our top software picks for 2024
How tax extensions work if you owe taxes
If you couldn't file your return by the tax filing deadline, in addition to getting an extension, the IRS suggests you estimate your tax bill and submit a payment as soon as possible. That's because anything you owe after the deadline is subject to interest and a late-payment penalty.
You might be able to catch a break on the penalty if you paid at least 90% of your taxes owed by the deadline and pay the rest when you file your return. You can estimate your tax liability by using the Estimated Tax Worksheet on Form 1040-ES or using tax software.
If you can't afford your entire tax bill, the IRS recommends paying what you can to limit those fees.
How tax extensions work if you're due a refund
The IRS does not impose a failure-to-file penalty on tax returns that are filed late if you're due a refund. However, filing a tax extension anyway could be a good idea. For example, if you miscalculate and end up with a tax bill, a tax extension will get you out of that late-filing penalty.
» MORE: How to make an IRS payment
How many tax extensions can you file?
Generally, you can't request more than one tax extension per return.
How much does a tax extension cost?
Nothing. Taxpayers could file a tax extension for free through IRS Free File up until April 15.
Tax extensions for overseas taxpayers and military members
Some people don’t need to worry about applying for tax extensions, because they automatically get more time if they meet certain criteria.
U.S. citizens or residents who lived and worked outside of the country on the tax filing deadline may automatically get two extra months to file their return and pay any amount due without having to request a tax extension. If you needed additional time beyond those two months though, you would have had to have filed for an extension by June 17, 2024, to extend your filing deadline to October.
People living in state counties affected by certain natural disasters may automatically get more time, too.
Some military members also automatically get extra time, depending on where they are and what they’re doing.
What happens after you file a tax extension?
You still have to file your final return by Oct. 15, 2024. If you miss the October due date,penalties will accrue.
How do you file a state tax extension?
The rules for requesting a state tax extension can vary. In some states, you might have to file an additional form, while in others, it might automatically be granted. In certain states, a federal tax extension also serves as a state extension. Illinois, for example, automatically extends the state tax return deadline to mid-October if a person's federal tax extension is approved.
Your state's tax department is the easiest way to determine your state income tax deadline and how to file for a state tax extension.
Which states have tax deadline extensions?
Several states have received extended federal tax filing deadlines due to FEMA-declared natural disasters. The extension applies to federal filing and payment due dates for individual income, business, and quarterly tax filings.
As a rule of thumb, only people and businesses established in the counties the IRS recognizes as affected by the disaster are eligible for this relief.
If you weren't able to meet your tax filing obligation on time because your preparer lives in the affected county, or if the paperwork you needed to complete your return was located in the disaster area, you may also be eligible. See the IRS disaster relief page for more details.
