Tax Deadline Extension: How it Works

A tax deadline extension is an automatic 6-month extension that gives you more time to file your taxes if you’re unable to meet the, typically, mid-April deadline. For 2022, the tax deadline for individuals was on April 18th and for 2023 the date falls on April 17th. You can file Form 4868 before the deadline to receive the automatic extension, which pushes your tax deadline to October. This extension applies to filing but not for any payments that are due. Penalties and interest will be incurred if you don’t pay any owed monies on time. You can speak with a financial advisor who can help you find the best time to file your taxes.

Tax Deadline Extension: What Is Extended

A tax deadline extension applies to all filers, including individuals, businesses, trusts, estates, and more. Once the proper paperwork is submitted then you automatically receive six more months to file your tax return. This is only recommended if you expect to receive a refund because owed amounts that are filed late will incur penalties and fees by the IRS.

There is no benefit to filing an extension if you’re looking to save for retirement through an IRA. The deadline to contribute to an IRA isn’t extended if you extend your filing date for your tax return. You still only have until mid-April to contribute to your IRA account for the previous year. The IRA contribution limit is $6,000, or $7,000 if you are 50 or older. If you’ve already maxed out your contribution for the previous tax year, you can contribute toward the next tax year, for which the limit is also currently $6,000.

State Tax Deadlines and Extensions for 2023

States typically have the same tax deadline as the federal government. This typically does not change, although in 2021 when the tax deadline was automatically extended by an additional month due to COVID-19, five states ended up allowing even later tax filing deadlines.

Find your state government’s tax agency website on the Federation of Tax Administrators’ list to learn more.

2023 State Income Tax Deadlines (for 2022 Tax Returns)

State tax extensions happen automatically and you get the same 6-months you would get from your federal return to file your state taxes. So the deadline for every state, once your extension is filed, will be October 16, 2023, to file your 2022 state taxes.

How to File a Tax Extension

If you need even more time to complete your 2022 federal returns you can request an extension to by filing Form 4868 through your tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until October 16th, 2023 to file their 2022 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by April 17, 2023, to avoid interest and penalties.

If you mail in your return, it must be postmarked on or before April 17, 2023, or sooner. Here’s a tax refund schedule to give you an idea of when to expect your refund after you’ve filed. It’s also important to note that the income tax refund schedule remains unchanged. This serves as an incentive for people to still file sooner rather than later.

When you file your federal extension you typically do not have to file anything else with your state. Most states give you an automatic 6-month extension if you do not file your taxes on time. You should check with your state to be sure, though.

Reasons to File a Tax Deadline Extension

You may want to file a tax deadline extension for a number of reasons. For the majority of people, it makes more sense to just file your taxes on time. This is because you will either delay receiving a refund if you’re getting one, or you could end up paying penalties and fees if you owe tax and didn’t pay on time. Here are the top reasons you may consider filing an extension:

• Your returns aren’t done: If you haven’t had enough time to thoroughly go through your return and make sure it’s accurate and has taken advantage of all the possible deductions, then you may want to file an extension.
• Missing information: If you haven’t received information from an employer, for example, you won’t be able to file on time.
• You know you’re receiving a refund: If you know you’re getting a refund and want to push receiving it until the fall, then filing an extension might work well for you.
• Your business filed an extension: If you have business taxes that are falling to your personal tax return and the business filed an extension, then you’ll likely be forced to file one for your personal returns as well.

Keep in mind that you should be very careful about filing an extension if you think you’re going to owe tax to the government. You don’t want to be hit with penalties or fees for not paying on time. You also want to be careful that if you are extending to make sure you file the proper paperwork so that you don’t receive a no-file penalty as well.

Bottom Line

If you need more time to file your taxes, you will need to file for an extension with Form 4868 before the tax deadline every April. This extension is for six months and applies only to the filing. Your federal taxes are still due at the deadline if you owe money, so if you don’t pay them by then, you will incur penalties and interest. It’s a good idea to file on time if you don’t know that you will be receiving a refund.

Tips for Taxes

• Taxes are complicated enough on their own without factoring in how they may be impacting your overall financial picture. Financial advisors can help navigate these difficulties and set you up for tax strategies that will benefit your financial plan. To simplify the search, SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• If you’re wanting to consider an extension because you aren’t sure if you’ll owe or not, you should check out our tax guide so that you better understand your options and file on time.

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