How to file a tax extension

For most taxpayers, the filing deadline for 2024 federal taxes is April 15, 2025.

If you need more time to get your return together, you can request an extension to Oct. 15, 2025. You still need to submit your estimated tax bill by Tax Day. The extra time is simply to submit paperwork.

Here's what you need to know about the tax extension, including how to file, what to do if you can't afford your tax bill and where taxpayers have more time to file federal taxes.

Requesting a tax extension allows you to avoid the penalty for filing a late return, which is 5% of the amount of unpaid taxes for each month your return is late (up to 25% of the unpaid taxes).

However, having extra time to file doesn't mean you also have extra time to pay: If you didn't make an estimated payment by the original deadline of Apr. 14, 2025, you're likely subject to the Failure to File penalty, which is 5% of the unpaid taxes for each month your return is late. (This penalty cannot exceed 25% of the taxes you owe, however.)

Your unpaid taxes also accrue interest from your return's due date to whenever you pay them in full. The rate is the federal short-term rate plus 3% and updates quarterly. Interest compounds daily.

If you can't pay the entire amount, you might be able to set up a payment plan with the IRS to chip away at the balance over time.

When you're filing your taxes after an extension, it might be challenging to remember all the deductions and other information you need to include.

If you haven't yet, find and organize all the documents that will help you in the process, such as your W-2 and other income forms, savings and investing records, mortgage interest statements and property tax records — everything that will help you complete your tax return.

If you're ready to file, you can use one of the popular tax filing software programs like TurboTax and H&R Block, which both offer step-by-step instructions to guide you through the process.

If you're worried you can't foot the bill, you should still file your 2023 return. Once you're current with your filing, you can set up an installment plan with the IRS.

Short-term payment plan: If you owe less than $100,000 (including tax, penalties and interest) you'll have up to 180 days to pay in full.

Long-term payment plan: If you owe less than $50,000 (including tax, penalties and interest), you'll have up to 72 months to pay off the balance in monthly installments.

These payment plans include interest and a non-payment penalty of up to 25% of the balance due, but a payment plan could cut your late fee in half, according to the IRS.

You can also apply for an offer in compromise, a request for the IRS to settle your tax bill for less than the amount owed. Your income, expenses and circumstances will be considered, but less than a third of OICs were accepted in 2023.

If you're still not able to file your 2024 return, it's unlikely you'll receive another extension. The exception is residents of states that have been given additional time due to FEMA-declared disasters.

If you do miss the October deadline, the IRS will hit you with a late filing penalty. The longer you wait, the costlier the fees. And if you haven't paid your tax liability, interest charges and late-payment penalties can become hefty.

At this stage, it might be best to consult with a tax professional. If you can't afford one, you may qualify for free tax help from a volunteer organization. Whatever option you choose, it will be less costly than burying your head in the sand.

The IRS gives individuals and businesses impacted by natural disasters more time to file their federal tax returns.
You can get the latest information about tax relief in disaster situations on the IRS website.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every tax guide is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of tax software products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best tax software.

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