How to file an extension on turbo tax

After a complicated tax season marked by IRS processing delays and more complicated returns for many following pandemic-related changes to the tax code,  Tax Day is here. 

Monday, April 18 marks the deadline to file and pay any 2021 federal income taxes you owe. If you haven’t filed yet, or did file your return but haven’t paid your balance, now is the time to take action. 

“A lot of tax law has changed in the past year, and there’s a lot of confusing stuff. More time gives you more of a chance of getting it right,” says Michele Cagan, CPA, founder of Single Mom CPA and author of “Debt 101.” 

If you need more time to file, request an extension from the IRS to delay your due date until Oct. 17, 2022. Anyone can apply for an automatic extension by filing Form 4868 through the IRS Free File software.

However, if you are able to file and pay your taxes owed today, do it.

You can complete your tax return and submit payment online via the IRS’ Free File service, which is available to filers whose income is $73,000 or below. If you’re ineligible for Free File, you can use an online third-party service such as TurboTax or H&R Block, or submit your return by mail, as long as it’s postmarked by April 18. Otherwise, an extension is a good option.

“A lot of people think that if you file an extension, somehow that puts you at risk for an audit or you get in trouble for filing an extension. That’s not true at all,” says Cagan. 

But you should remember that this is a filing extension only. If you owe the IRS money, you’re still obligated to pay by April 18. Any taxes you owe after April 18 will be subject to interest, which accrues daily, as well as monthly penalties.

Learn more about penalties and interest on the IRS website.

How to file an extension online

If you think you’ll owe money when you file, you should submit a payment when you file for an extension, too. The form offers different options for payment, including electronic transfer. 

How to file an extension by mail

Experts recommend filing online if possible, but you may choose to print and manually complete Form 4868 line-by-line using the IRS’ step-by-step instructions. You’ll need to estimate your tax liability to determine if you owe anything when filling out the form. You can submit your payment via check or money order, using the instruction on the form.

When filing for an extension by mail, make sure you have proof that you submitted the form on or before the April 18 deadline to avoid any penalties.

What To Do If You Owe Taxes

When you file your extension, you’ll need to include an estimate of your taxes owed on the form, which can help you determine the payment amount you should submit when filing. Use last year’s tax return, along with your W-2 and forms for other income sources (such as 1099s) to estimate. 

The IRS offers a tax calculator to help you figure out your total tax obligation using your pay statements most recent tax return. To determine what you still owe, subtract any amount you’ve already paid toward taxes.

If you submit your estimated payment through IRS Direct Pay and indicate that the payment is for an extension, the IRS will automatically count your payment as an extension, even if you haven’t filed Form 4868. 

If you don’t have the money to pay what you owe in full right now, any amount that you are able to contribute can help reduce the penalties and interest you’ll be charged in the future.

“If you are in a tough spot and don’t know if you’ll owe because you haven’t had a chance to get your documents together, the best thing to do is to file an extension with both the IRS and your state and make an extension payment — that way you’ll avoid penalties,” says Ally-Jane Ayers, CFP, co-founder and financial planner at Brooklyn FI.

For further flexibility, take time to apply for a short-term payment plan or long-term installment agreement with the IRS to spread your balance out over time with a lower monthly payment. 

If you decide to use a payment plan, complete the application today. You can apply for a plan online and receive an immediate notification of whether you’ve been approved.

What To Do If You Owe State Taxes

Filing a federal tax extension with the IRS only covers your federal tax return. 

However many state tax agencies set their state filing deadlines on or around April 18, too. Check your state’s tax website to find your 2021 state tax due date. In some cases, you’ll need to file for an extension both federally and with your state. 

The guidelines and deadlines can vary by state. For instance, if you are granted a federal tax extension as a North Carolina resdient, you’ll also be automatically granted a state tax extension for North Carolina taxes.  You’ll need to show proof that the extension was approved, and it will be for the same amount of time that the IRS grants — six months (Oct. 17). 

But some states, such as New York, require you to request a separate extension using by filing a form with the state. If you know you need an extension, it’s best to check your state’s requirements now to make sure you file in time. Remember to complete any required documents and keep proof that you submitted.

Whether your state tax extension is automatic or not, state extensions also do not apply for taxes owed. If you think you owe, you’ll need to submit payment of your estimated tax obligation by your state’s tax deadline.

What To Do If You Expect a Refund

Even if you don’t owe any money to the IRS, you should still make sure your return is filed by the deadline to receive your refund — and any stimulus money you may still be owed — as quickly as possible. 

Still, prepare to be patient: The IRS continues to face processing delays (especially if you file by mail) due to its large backlog and implementation of last-minute tax changes. Double check your return for any mistakes or inaccuracies to best ensure it’s processed and your refund issued as quickly as possible.

After you file, you can check the status of your refund using the Where’s My Refund tool on the IRS website.

Bottom Line

Act quickly to file and pay your taxes owed by the tax deadline, but remember to approach your situation with a clear head and know the facts, Ayers says: “Stay calm and lean on the IRS website for help.”

Take time today to develop your action plan. Go ahead and file your return and pay online if you’re able; otherwise, file for an extension until Oct. 17, pay what you can of your estimated balance, and apply for a payment plan if necessary.

Tax deadlines have a way of creeping up on you, so filing for a tax extension might be something you need to do at some point in your life.

If you need more time to prepare your return—whether you are busy with school, travel, or a family emergency, or are simply disorganized—you can request a six-month filing extension by submitting the proper form to the Internal Revenue Service (IRS). Of course, there’s also a deadline for that, but the good news is that getting an extension is easier than you might think. Here’s what you need to know, from dates and forms to special rules.

• You can file a tax extension either electronically or by mailing a paper form.
• Tax extensions are generally six months in length.
• Any overpayment will be refunded when you file your tax return.
• An extension for your filing deadline does not extend your payment deadline.
• Securing an extension will give you until Oct. 15, 2022, to file 2021 tax returns, as opposed to April 18, 2022.

If you need an extension of time to file your individual income tax return, you must file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

The deadline to file for an extension is the same as the date your tax return is normally due. In most years, that's April 15 or the next weekday if that date falls on a weekend.

Residents and business owners in Louisiana, Mississippi, and parts of Connecticut, New York, New Jersey, and Pennsylvania received automatic extensions on their deadlines for 2020 return filings and 2021 estimated payments to the IRS until Feb. 15, 2022, because of Hurricane Ida. Taxpayers in parts of Illinois, Kentucky, and Tennessee received extensions after tornadoes in December 2021, as did residents of a Colorado county following wildfires later that month. Consult IRS disaster relief announcements to determine your eligibility.

Requesting an extension is free and relatively simple, and you can do it either electronically or on paper. Either way, you will need to provide identification information (your name, address, Social Security number, and your spouse’s Social Security number) and your individual income tax information (estimate of total tax liability for the year in question, total payments you’ve already made, the balance due, and the amount you are paying).

There are also checkboxes to indicate if you are either a U.S. citizen or resident who is out of the country or if you file Form 1040-NR, which is an income tax return that nonresident aliens may have to file if they engaged in business in the U.S. during the tax year or otherwise earned income from U.S. sources.

Like all other tax forms, Form 4868 is available on the IRS website. Visit the Forms, Instructions & Publications section for a list of frequently downloaded forms and publications, including Form 4868.

IRS e-file is the IRS electronic filing program, which allows you to send tax forms, including Form 4868, directly to IRS computers. You can get an automatic extension to file your tax return by filing Form 4868 electronically through IRS e-file on your own, using free or commercial tax software, or with the help of a tax professional who uses e-file.

In any case, you will receive an email acknowledgment you can keep with your tax records.

If your adjusted gross income (AGI) is below a specified figure—$73,000 for 2021—you can use brand-name software at no cost from Free File—a free service that provides taxpayers with federal tax preparation and e-file options.

If your income is above the threshold, you can use the IRS Fillable Forms tool. There are also some tax software companies that offer free filing under certain conditions.

It's also possible to file Form 4868 in paper form. You can download the form from the IRS website or request to have a paper form mailed to you by filling out an order form on the IRS website. Alternatively, you can call the IRS at 800-829-3676 to order a form. Your local library or post office may also have copies.

Notably, if you are a fiscal year (not calendar year) taxpayer, you can only file a paper Form 4868.

If you recognize ahead of time that you’ll need an extension, don’t wait until the last minute to submit Form 4868. The earlier you get it in, the more time you’ll have to fix any potential errors that may come up before the deadline passes and the extension door closes.

It’s important to remember that the Form 4868 extension gives you more time to file, not more time to pay. You will still have to pay your taxes by that year's original due date, even if the IRS grants an extension to file later.

If you think you may owe taxes when it comes time to file your return, you should estimate how much you will owe and subtract any taxes that you have already paid (for example, through tax withholding on your paycheck). If your estimate is on the high side and you end up overpaying, you will get a refund when you eventually file your return. You'll also avoid potential penalties and interest accumulating, which is what can happen if you underestimate your taxes due.

When you file Form 4868, you’ll need to pay the estimated income tax you owe. Sometimes it's better to err on the high side—you’ll get a refund anyway, while underestimates increase the risk of paying interest on the money owed.

You can pay some or all of your estimated income tax online using a debit or credit card, or through an electronic funds transfer using Direct Pay. It's also possible to mail a check or money order to make your tax payment, even if you file electronically. Make the check or money order payable to the United States Treasury and include a completed Form 4868 as a voucher.

You do not need to file a paper Form 4868 if you submitted one electronically and are not mailing a payment.

Each state has its own requirements for tax extensions. Though some states offer automatic six-month extensions to all taxpayers (Alabama, California, and Wisconsin, for example), others require you to fill out a form on or before your return’s original due date.

Some states do not impose a state income tax, so you would file neither a return nor an extension request in those states.

You can use commercial tax preparation software to generate the correct state-specific form, or find the form on your state tax authority’s website.

As with your federal tax return, the state extension serves only to give you more time to file your return, not to pay your taxes. If you can, calculate what you owe and submit a payment to avoid penalties and interest.

The IRS has two special circumstances under which you can extend the tax payment deadline.

You will be allowed an automatic two-month extension to file your return and pay any federal income tax due—without requesting an extension—if you are a U.S. citizen or resident alien and on the regular due date of your return are either:

• Living outside the U.S. and Puerto Rico and your main place of business or post of duty is outside the U.S. and Puerto Rico
• On duty outside the U.S. and Puerto Rico for military or naval service

Remember, you must attach a statement to your return that explains the situation that qualified you for the extension. It's also worth bearing in mind that interest will accumulate on any taxes not paid by the original due date if you owe money at the time of filing.

The deadline for filing tax returns and paying taxes is automatically extended if one of the following two situations applies:

• You are serving in the armed forces in a combat zone or have qualifying service outside of a combat zone
• You are serving in the armed forces on deployment outside the U.S. away from your permanent duty station while participating in a contingency operation

Should you fall into one of those two categories, your deadline for filing and paying taxes is extended for 180 days after either:

• The last day you are in a combat zone or serving in a contingency operation
• The last day of any continuous qualified hospitalization for a service injury from a combat zone or contingency operation

Added on to those 180 days is the number of days you had left to file when you entered service.

If you sent Form 4868 electronically to the IRS, you should receive an email within 24 hours confirming that it has been received. For mail applications, you won’t receive an email and will most likely need to call the IRS for confirmation that your request is in the right hands.

Silence is normally a good sign. The IRS won't contact you following the filing of a tax extension unless there is an issue with it. That doesn't happen too often, although there are occasions when a tax extension request may be denied.

Nine times out of 10, if you file on time and fill out the form correctly, you should have no issue getting an extension.

In most cases, applications are rejected for minor problems that can easily be fixed. If it comes down to a misspelling or providing information that doesn't align with IRS records, the tax authority will usually give you a few days to sort out those errors and file the form again—this time accurately.

The IRS tends to take less kindly to unrealistic tax liability estimates. If it disagrees with your figures, your application for an extension may be denied and you could even be hit with a penalty.

You can request more time to file your individual federal income tax returns by completing and submitting Form 4868. This form can be filed electronically or sent by post and, barring any issues, should automatically extend the deadline for filing by about six months.

Yes, you can. If your adjusted gross income (AGI) falls below the annual threshold, you can use the IRS Free File program to electronically request an automatic tax-filing extension. Higher earners can use the IRS Free Fillable forms, assuming they are comfortable handling their taxes. If that's not the case, there are several tax-software companies that offer free filing under certain conditions.

Yes, securing an extension is a fairly straightforward process. All you need to do is get Form 4868, fill it out, and then send it off to the IRS, either electronically or by post, before the deadline. The form itself isn't very long, although coming up with an estimate of your total tax liability in the tax year can sometimes be tricky.

No, filing for an extension does not incur a penalty. In most cases, what leads to penalties is not paying on time, not paying at all, or not paying enough. If you fail to pay everything you owe, the IRS will charge you interest on the amount outstanding until your bill is fully settled. If that happens to be less than 90% of the total, you might also be hit with a late payment penalty.

Unless the IRS is forced to push the deadline back again, 2021 federal taxes should be filed by April 18, 2022—the regular April 15 date falls on Emancipation Day in 2022. If you successfully request an extension by that date, you will have until Oct. 15, 2022 to submit your 2021 tax return.

Having extra time to gather, review, prepare, and submit your tax return can ease stress and allow you to be more thorough with your return. Requesting an extension is fairly simple, and you do not need to explain to the IRS why you want one.

Most requests are granted automatically, and the IRS will contact you only if yours is denied.

You can file your tax return anytime before the extension expires, and you do not need to attach a copy of Form 4868 to the return. Just remember to pay any federal tax you owe by that year's tax deadline and check with your state about its regulations for state income tax returns.