Ways to file a tax extension
The IRS offers several ways to request an extension:
| Method | How it works |
|---|---|
| IRS Free File | Electronically request an extension at no cost, regardless of income |
| Electronic payment | Pay all or part of your estimated tax and select “extension” as the reason for payment; no separate Form 4868 is required |
| Form 4868 | File electronically through an e-file provider or tax professional, or mail the form |
Source: Internal Revenue Service
Estimating and paying your tax
A filing extension gives you more time to complete your return, not more time to pay. To determine what you owe:
- Estimate your total tax liability for the year.
- Subtract federal income tax withholding and other tax payments you’ve already made.
- Pay as much of the remaining balance as possible by the regular filing deadline. Even if you can’t pay in full, you can reduce penalties by making a partial payment.
Keep in mind that interest and the failure-to-pay penalty may still apply to any unpaid balance.
Penalties for filing or paying late
The two penalties are:
| Failure-to-file penalty | 5% of unpaid tax for each month or part of a month a return is late, up to 25%. |
| Failure-to-pay penalty | 0.5% of unpaid tax for each month or part of a month the balance remains unpaid, up to 25%. Interest may also apply. |
Filing an extension by April 15 and submitting your return by October 15 avoids the failure-to-file penalty — but remember, any taxes owed are still due by April 15.
Taxpayers who may get more time automatically
Some taxpayers qualify for automatic extensions without filing Form 4868. For example:
- Certain U.S. citizens and resident aliens living and working abroad generally receive an automatic two-month extension.
- Military members serving outside the U.S. may qualify for additional time. Those serving in a combat zone generally receive at least 180 days after leaving the zone to file and pay.
- Taxpayers affected by certain federally declared disasters may receive postponed deadlines.
These rules can differ from a standard six-month filing extension, so check the IRS extension guidance that applies to your situation.
