Tax Extension
How a tax extension works, the October 15 deadline, why you still have to pay by April 15, and a calculator comparing penalties with and without an extension.
Tax extension penalty calculator
Interest is charged on unpaid tax either way.
Tax extension: what it does and doesn't do
Filing Form 4868 (or paying electronically and checking the extension box) by the April deadline gives you until October 15 to file. It's an extension to file, not to pay: estimate and pay what you owe by April 15.
Penalties
- Failure to file: 5% of unpaid tax per month or part month, up to 25%; an extension avoids it if you file by October 15.
- Failure to pay: 0.5% per month, up to 25%; when both apply in a month, the filing penalty is reduced by the payment penalty (4.5% + 0.5%).
- Interest on unpaid tax runs from April 15 in all cases.
Example: $5,000 unpaid for 6 months: about $150 of failure-to-pay penalty with an extension, versus about $1,275 in penalties without one. Can't pay? See IRS payment plans.
Common questions
How long is a tax extension?
Six months, to October 15.
Does an extension give me more time to pay?
No, tax is still due by the April deadline.
What is the penalty for filing late?
5% of unpaid tax per month, up to 25%.
Sources
- IRS: Extension of time to file your tax return
- IRS: Failure to file penalty
- IRS: Failure to pay penalty
More paycheck and tax calculators: States Without Sales Tax · Tax Exempt Form · UI Claims · W2 Form
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.