Filing an Income Tax Extension

If you can't complete your federal tax return by the April 15 deadline for 2008 returns, you can buy more time.

Just file an extension, to push the deadline back six months to October 15, 2009 and avoid IRS late-filing penalties.

There's a catch, though: The extension only pushes back the due date of the paperwork. If you owe money, you need to estimate the amount, then file your extension and make your payment by April 15, 2009.

You have several ways to file your extension, officially known as IRS Form 4868: Application for Automatic Extension of Time to File.

If you've already started a return in TurboTax

Go back to the TurboTax program and click Apply for more time to file your return on the Get Started page.

TurboTax walks you through preparing Form 4868. Then print and mail it in (also including a check if you'll owe) on or before April 15, 2009. You also can use TurboTax to find out about extensions for state returns.

Print the form and fill it out by hand

Refer to IRS Form 4868: Application for Automatic Extension of Time to File. Print the form and instructions. Fill out the form and send it to the IRS address for your state.

If you owe federal taxes, include your payment with your Form 4868 and mail it—postmarked by April 15, 2009. (If you don't make a payment for the taxes due, you could be liable for penalties and interest, even if you've filed for an extension.) Then complete and file your return on or before October 15, 2009.

If you need to pay by credit card

If you've e-filed or mailed Form 4868 and need to pay by credit card, you can use one of several IRS approved Electronic Payment Methods. You can pay with your credit card online or by phone. File your complete return by October 15, 2009.

Cautions

• If the IRS thinks your estimate is unreasonable, they may disallow your extension and assess a penalty for filing late tax returns.
• If you underestimate your taxes, you'll have to pay interest on whatever amount you fail to pay by April15.
• If you pay less than 90 percent of the tax you owe, you'll end up owing a penalty of 0.5 percent of the underpayment every month until you pay the balance. For example, if you pay $600 on April 15, but discover when you complete your return that you really owe $1,000, you will owe 0.5 percent per month on the $400 that is overdue, or about $2 a month, until you pay the balance in full.

If you live outside the United States, you may be able to get an extension by filing IRS Form 2350: Application for Extension of Time To File U.S. Income Tax Return if you believe you will qualify for special tax treatment. See IRS Publication 54: Tax Guide for U.S. Citizens and Resident Aliens Abroad to learn if this form might help you.

State tax extension guidelines vary. To see detailed information about state extension filing deadlines and mailing addresses, select your state of interest from this state tax authority's Web site.

Updated for tax year 2008