Filing for a tax extension gives you more time to submit your return, but it doesn't mean you're able to hit a pause button on the entire process. If you filed for an extension this year, here's what you need to know about the months ahead, including key deadlines, special rules, and when to bring in a CPA.
Standard Six-Month Extension: What It Covers and What It Doesn't
Most taxpayers who request an extension receive an additional six months to file. That moves the deadline from April 15 to October 15. You don't need to explain why you're filing late, and the extension is usually automatic once you submit Form 4868.
It's important to understand that this extension only applies to filing, though, not payment. Any taxes owed are still due by April 15. If you haven't paid by then, interest starts accumulating immediately. You could also face penalties for late payment, even if the return itself is submitted on time.
Special Extension Rules for Military and Overseas Taxpayers
Certain taxpayers automatically qualify for more time. If you're active-duty military stationed outside the United States or you're a U.S. citizen living abroad, you get an extra two months to file your return. That moves your due date to June 15 without needing to file Form 4868.
To extend further to October 15, you must file Form 4868 before the June deadline. Keep in mind, though, that the April 15 payment deadline still applies, and interest may accrue on unpaid taxes.
Disaster Relief Extensions for Affected Areas
The IRS offers automatic deadline extensions for taxpayers in federally declared disaster zones. In 2023, this included regions affected by wildfires in Hawaii and California. If you live in or operate a business in one of these areas, you may have extra time to file and pay.
You don't need to request these disaster-related extensions. The IRS tracks addresses within the declared zones and applies the changes automatically. Relief also may apply to individuals who assist in disaster recovery efforts, even if they don't live in the affected area.
State Filing May Require a Separate Extension
If you live in a state that collects income tax, you may need to file a separate extension for your state return. A federal extension doesn't always cover your state obligations.
Every state has different rules and deadlines. Some accept a copy of your federal Form 4868, while others require a state-specific form or online request. It's important to review your state's requirements or have your CPA handle both filings together.
When Filing for a Tax Extension Is a Smart Move
Filing for an extension gives you extra time to prepare an accurate return, which is especially helpful if:
- You're waiting on important tax documents like W-2s, 1099s, or K-1s
- You're self-employed or have multiple sources of freelance income
- You plan to contribute to a retirement account before the extended deadline
- You receive income from trusts, estates, or partnerships with delayed reporting
Taking time to file a complete return can help you avoid errors and reduce the risk of IRS scrutiny.
When It May Not Be Worth Filing a Tax Extension
Filing an extension doesn't delay your tax bill. If you owe money and haven't paid by April 15, you'll still face interest charges and possibly late payment penalties. In those cases, it's better to estimate your payment and send it in with your extension request.
Also, if you're expecting a refund, delaying your return means delaying your money. There's no penalty for filing late when you're due a refund, but the longer you wait, the longer it takes to get paid.
Some states may not honor the federal extension period, so filing late without confirming state rules could lead to separate penalties.
Talk to a CPA Before You Decide to File for a Tax Extension
Filing an extension can be a smart financial decision, but it depends on your situation. A CPA can help you estimate how much you owe, determine whether you qualify for special deadlines, and make sure both federal and state filings are completed correctly.
At Myrick CPA, we work with clients to help them understand the rules around tax extensions before making a decision. Whether you're dealing with a complex return, an overseas assignment, or disaster relief, we can help you stay in compliance and avoid costly missteps. Contact us to schedule a consultation.
