• Money
    • Budget
    • Shop
    • Travel
    • Stories
  • Career
    • Advice
    • Entrepreneurship
    • Freelance
    • Small Business
  • Investing
    • General
    • IRA + 401K
    • Stocks + Bonds
    • Retirement Planning
    • Estate
  • The Basics
    • Student Loans
    • Credit Cards
    • Debt
    • Taxes
    • More
  1. Home
  2. The Basics
  3. Taxes
  4. Extension for Paying Income Taxes

Extension for Paying Income Taxes

By: Nola Moore
  • Share
  • Share on Facebook

Whether you ran out of time, don't have money to pay right now or simply find your tax situation too complicated to resolve by April 15, you have a legitimate opportunity to extend your tax deadline. But an extension does not count as a "get out of tax free" card. You'll still have to pay your taxes, but you can delay the pain for a small fee.

Basic Tax Filing Rules

The Internal Revenue Service allows taxpayers 3 1/2 months after the work year ends to file their tax returns for that year. Your annual tax accounting, and any tax owed, must be postmarked or electronically filed by April 15 each year. If April 15 falls on a Saturday, Sunday or federal holiday, the deadline is extended until the next weekday.

Extensions of Time to File

If you are a U.S. citizen or resident alien and you are out of the country on the filing deadline, you receive an automatic two-month extension to file. This means you have until June 15 to file your taxes, and you don't need to file an extension request. If you are in the military and stationed in a combat zone, you are allowed even more time. If you are in the country and simply need additional time to file, you can fill out an IRS Form 4868, mail or electronically submit it by the tax filing deadline and get an automatic six-month extension. Your tax return is then due on Oct. 15. The same weekend and holiday rule applies to extensions as to the regular filing deadline.

Video of the Day

Extensions of Time to Pay

An extension of time to file is not an extension of time to pay. If you owe taxes and do not pay them by April 15, you might be penalized. The penalty may be waived if you paid at least 90 percent of what you currently owe during the year or if during the year you paid the same amount or more than you paid the year before. You can avoid a penalty by estimating the amount you owe and including it with your extension form.

Penalties

If you do not file an extension form, or if you fail to file your return by the extension deadline, you will be penalized. If you do not pay on time, you will receive a penalty. Penalties vary somewhat depending on the situation and can be as small as 0.5 percent of the amount owed each month the taxes aren't paid. Penalties can also be large: In some cases, you may have to pay an additional amount equivalent to 100 percent of the value of tax owed. You can significantly reduce penalties if you arrange to pay your taxes on an installment plan.

State Tax Extensions

Filing an extension at the federal level does not necessarily mean you'll get an extension of time to file your state taxes. Each state is different, so verify your state rules to ensure that you qualify for additional time to file.

Show Comments

Related Articles

Are Tax Penalties & Interest Deductible?

Are Tax Penalties & Interest Deductible?

The Basics
Taxes
By: Mark Kennan
How Do I File a Tax Extension?

How Do I File a Tax Extension?

The Basics
Taxes
By: Stephanie Faris

PARTNER CONTENT

Money Mistakes Wealthy People Don't Make

Money Mistakes Wealthy People Don't Make

How to File Late Tax Returns in California

How to File Late Tax Returns in California

The Basics
Taxes
By: Kate Fogle
How to File Late Taxes

How to File Late Taxes

The Basics
Taxes
By: Cellina LaForey
How to Calculate Late Payment Penalty & Interest on IRS Tax

How to Calculate Late Payment Penalty & Interest on IRS Tax

The Basics
Taxes
By: Cynthia Myers

Get Weekly Savings& Finance Tips.

  • Money
  • Career
  • Investing
  • The Basics
  • About
  • Contact Us
  • Terms
  • Privacy Policy
  • Copyright Policy
© 2019 Leaf Group Ltd. Leaf Group Media

Get Weekly Savings
& Finance Tips.

Money Made Easier.

Please enter a valid email.