Fortunately, the IRS offers taxpayers an easy way to get more time: by filing for an extension. Let's take a look at how to properly request an extension, what it means for your tax obligations, and important considerations to avoid penalties.
You get six more months to complete and submit your tax forms (until Oct. 15, 2025).
An extension helps you avoid the failure-to-file penalty, which is much more severe than the failure-to-pay penalty.
How to file for an extension
You have a few options to secure that six-month extension.
Download Form 4868 from the IRS website.
Estimate your total tax liability for 2024.
Submit the form by April 15, 2025, along with payment for any estimated taxes due.
Option 2: Electronic filing
You can also file for an extension electronically. The IRS Free File program offers an extension here. Commercial tax softwares, like TurboTax and H&R Block, should also have "File an extension” options on their sites. Electronic filing offers confirmation that your extension request was received and processed.
The challenging part of filing an extension is estimating your tax liability when you don't have all your documentation ready. To tackle this, some strategies include:
Gather whatever documents you do have (W-2s, 1099s, mortgage interest statements) and make a best-effort calculation.
And going forward, I recommend you start using a spreadsheet to track all your tax-related information throughout the year. I've created a basic template to get you started here. The purpose is to create a handy archive of all your tax records in one spot, making it much easier to file on time next year.
State tax extensions
Some states require their own extension forms
Some states require payment of estimated taxes with the extension request
Filing for an extension typically means an automatic Oct. 15 deadline, except in some specific circumstances.
Americans living abroad
If you're serving in a combat zone, you receive an automatic extension for both filing and paying for the duration of your service plus 180 days.
Disaster victims
What happens if you still miss the extended deadline
If you obtain an extension but still fail to file by Oct. 15, you're in a tough spot. From here, the failure-to-file penalty starts accruing. That means 5% of unpaid taxes per month, up to 25%. You may lose the ability to make certain elections on your tax return, and you risk losing any unclaimed refund if you wait more than three years to file.
The bottom line
File Form 4868 or make an extension-related payment by April 15.
Complete your actual tax return by Oct. 15.
An extension gives you breathing room to file an accurate tax return rather than rushing and potentially making costly errors. If you're not ready to file by Tax Day, taking a few minutes now to request an extension is a smart financial move that can save you from much larger penalties down the road.
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