How to File a Tax Extension

Do you need to file a federal tax extension?

If you’re like me, you probably put off filing your taxes. But as the April 18, 2022 tax deadline approaches, you should probably consider whether you need to file a tax extension if you haven’t already filed.

Filing a Federal Tax Extension Is Free and Easy

Filing a request for a federal tax extension gives you an extra six months to file your income taxes, and the best part is that it’s easy and will not cost you a penny. The deadline for filing a tax extension this year is April 18 (it’s usually April 15), the same deadline for filing and sending your federal taxes and income tax payment.

The only downside is that an extension of time to file does not give you an extension to pay your federal tax bill. If you owe the IRS money for your income taxes, you will have to pay at least 90% of that balance when you file your tax extension request. Otherwise, you may owe penalties and fees.

Use Tax Form 4868 to File an Extension

Before filing for a tax extension, you will need to have a rough draft of your tax return completed. You will need to fill out and file tax form 4868 and send it to the IRS. Form 4868 is relatively easy to complete, as it is only one page long. You fill out your name, address, Social Security number and estimated tax liability, tax payments, balance due and the amount you are paying.

You can use many tax-preparation software programs to e-file this form, including TurboTax, H&R Block and others. These programs offer step-by-step instructions for completing the tax extension and will save your progress if you use the program when you file your taxes. They may charge a fee for the software but, in my experience, using a guided software program is much easier than trying to do taxes by hand.

You can also use the IRS fillable form or download Form 4868 from the IRS website, print it, fill it out and send it in. Don’t forget to include your payment if you owe federal taxes.

Those without internet access or a printer can pick up Form 4868 at a local IRS office, post office or library or call 1-800-TAX-FORM (1-800-829-3676) to file a tax extension.

Tax Deadline Extensions for Military Members

Military members may qualify for even longer extensions, especially if they were serving in a tax-free zone for either the current year or the previous year. Some American civilians working overseas may also qualify for a longer extension.

Depending on your situation, you may qualify for a military tax deadline extension due to a deployment, service in a tax-free military zone or other military qualification. Some of these extensions are automatic, but others require you to at least notify the IRS of your situation. These military tax-deadline extensions qualify you for an extension for both filing your federal taxes and making your federal tax payments. In many cases, the deadline extension is automatically set at six months, but it may be longer if you are currently deployed overseas.

Free tax preparation for military members: Remember — many military members and their family members are eligible for free military tax preparation. Be sure to check your base military tax center for more information about applying for a federal tax extension.

What If You Don’t File a Tax Extension?

Form 4868, along with the appropriate amount due, if applicable, is due by April 18, 2022. Once the tax extension form has been filed, you have until Oct. 17 to complete and file your taxes. If you do not file your taxes by either due date, you may be subject to penalties and fees — and in the most extreme circumstances, jail time.

If you cannot make your estimated tax payment by the April 18 deadline, you should call the IRS. They will often work out a payment arrangement with you if a large amount due will cause a financial strain.