Extensions: What They Really Mean

Sometimes, you just aren’t ready by April 15th. That’s where tax extensions come in.

The number ONE confusion with extensions: they give you more time to FILE, NOT PAY.

Even if you file an extension, your tax payment is still due by the original April deadline. If you owe taxes and don’t pay by then, you may owe interest and penalties.

You don't have to know the exact amount down to the penny. An estimate is generally enough to make a payment and reduce the possibility of additional charges.

What if you don't owe anything?

If you’re expecting a refund, there generally isn't a penalty for filing after the April deadline as long as you file within the extension period.

How do you request an extension?

For individuals, an extension is generally requested using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. You can also request an extension electronically when making certain tax payments.

And remember: an extension to file is not an extension to pay.

If you’re not going to have everything ready by April, don’t panic. An extension is a pretty normal part of tax season. Just make sure you understand what you may owe and take care of the payment by the original deadline.