What a tax extension does (and doesn’t) do
The most important thing to understand: an extension gives you six more months to file your return; it doesn’t give you more time to pay. Any taxes owed are still due by April 15. If you don’t pay by then, interest accrues on the unpaid balance, and a late payment penalty may apply.
A few things to keep in mind:
- The extension is automatic once Form 4868 is filed on time; the IRS doesn’t send approval.
- Filing an extension doesn’t raise your audit risk.
- Filing an extension doesn’t affect your ability to receive any due to you upon filing.
- If April 15 falls on a legal holiday or weekend, the deadline moves to the next business day.
How to file a tax extension online for free
| Method | How it works | Best for |
|---|---|---|
| IRS Free File | Complete the guided Form 4868 tool. Available to all individual filers regardless of income when filing only an extension. | Anyone who wants a simple, free, no-payment option |
| IRS Direct Pay | Make a tax payment at IRS.gov/payments and select “Extension” as the reason. This automatically submits Form 4868 with your payment. | Filers who owe taxes and want to pay and extend in one step |
| EFTPS | The Electronic Federal Tax Payment System allows payment with an extension designation. | Self-employed filers already enrolled in EFTPS for quarterly estimated taxes |
Source: Internal Revenue Service
What you’ll need to file Form 4868
Before you start, gather:
- Your Social Security number (or ITIN) and address as they appear on your tax return.
- Estimated total tax liability for the year. Your estimate doesn’t have to be exact.
- Total payments already made.
- Estimated balance due (liability minus payments). If you pay as much of this as you can by April 15, it will minimize the amount of interest you will owe.
What happens if you don’t file an extension
Two separate IRS penalties apply when you miss both the filing and payment deadlines:
- The failure-to-file penalty is 5% of unpaid taxes per month, up to 25%
- The failure-to-pay penalty is 0.5% per month, up to 25%
Filing an extension timely eliminates the failure-to-file penalty, even if you still owe.
You can also avoid any underpayment penalty by following the safe harbor rule and paying:
- At least 90% of this year’s tax liability by April 15, or
- 100% of last year’s tax liability (110% if your prior-year adjusted gross income exceeded $150,000 or $75,000 if married filing separately).
State tax extensions
A federal extension doesn’t automatically extend the time to file your state return in every state. Many states do grant an automatic extension when you file a federal extension; however, others require a separate state form. Be sure to check any states where you are required to file a return for that state’s requirements for an extension to file.
