If tax season has crept up on you and you’re not quite ready to file, you’re not alone. Every year, millions of Americans need more time to get their tax documents in order. Fortunately, the IRS offers a straightforward way to delay your filing deadline by allowing you to submit a tax extension.
In this comprehensive guide, we’ll walk you through each step of filing a tax extension in 2025, what it means for your tax obligations, and what you can expect once you’ve filed. Whether you’re a freelancer, small business owner, or simply overwhelmed with paperwork, this guide will make the process clear and stress-free.
What Is a Tax Extension?
A tax extension gives you additional time to file your federal income tax return — typically six extra months. For most taxpayers, the standard deadline is April 15. With an extension, you get until October 15 to submit your completed return.
Important: A tax extension delays your filing, not your payment. You must estimate and pay any owed taxes by the original due date to avoid penalties.
Who Should Consider Filing a Tax Extension?
Filing an extension can be beneficial if:
- You’re missing key tax documents (e.g., K-1s, 1099s)
- You’ve had a major life event (moving, illness, business changes)
- You’re a freelancer or business owner with complex finances
- You need more time to maximize deductions or contributions
It’s better to file an extension than to file a rushed or inaccurate return, which can lead to IRS scrutiny or amendments.
Step-by-Step Guide to Submit a Tax Extension to the IRS (2025 Edition)
Step 1: Estimate Your Tax Liability
Even if you’re filing for an extension, you must still estimate and pay any taxes due by April 15.
Tools to Help:
Step 2: Choose a Method to File Your Extension
You have multiple options to file Form 4868, the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
Option 1: File Electronically (E-File)
This is the fastest and most secure method.
E-file using:
Option 2: File by Mail
- Download Form 4868
- Print and complete the form
- Mail it to the IRS address listed on the form, depending on your state
Step 3: Submit Payment (If You Owe)
If you expect to owe taxes, you should pay as much as possible by April 15 to avoid interest and penalties.
Payment Options:
- Direct Pay
- IRS2Go App
- Debit or credit card via third-party processors
You can also submit a payment with your extension electronically. The IRS will count that as filing your extension — no extra forms needed.
What Happens After You Submit a Tax Extension?
Once you’ve filed your extension and submitted any estimated payment, here’s what to expect:
1. You Get Until October 15 to File
- This six-month extension gives you time to gather documents, work with a tax pro, or correct past mistakes.
2. Penalties and Interest Still Apply on Unpaid Taxes
- If you don’t pay enough by April 15, the IRS may charge interest and penalties, even if you’ve been granted an extension.
3. You May Still Qualify for a Refund
- Filing late doesn’t mean you miss out on a refund — just make sure to file before the three-year deadline.
Pros and Cons of Filing a Tax Extension
Pros:
- Avoid late-filing penalties
- Extra time to gather documents or make IRA/HSA contributions
- More time to work with a professional
Cons:
- Doesn’t delay tax payment
- Risk of underpaying and incurring penalties
- May delay refund if one is owed
Special Considerations for 2025
In 2025, tax policy and IRS systems have been updated to make the process smoother. Here are a few 2025-specific tips:
1. IRS Digital Correspondence Portal
You can now track your extension status through the IRS Online Account.
2. More Mobile-Friendly Filing Options
The IRS has improved its IRS2Go app for filing extensions and making payments directly from your smartphone.
3. Higher Contribution Limits
If you’re using the extension to make last-minute retirement contributions, note the 2025 limits:
- IRA: $7,500 (with catch-up for 50+)
- HSA: $4,150 (individual), $8,300 (family)
Common Mistakes to Avoid
- Assuming Extension Means More Time to Pay – It doesn’t. Interest and penalties can add up fast.
- Not Filing the Extension Form – Just paying doesn’t count unless it’s correctly submitted.
- Forgetting to File by October 15 – Missing the extended deadline results in failure-to-file penalties.
- Underestimating What You Owe – Lowballing your tax estimate can result in higher interest and penalties.
When to Consult a Tax Professional
While filing a tax extension is straightforward for most, there are situations where consulting a tax advisor is wise:
- You own a business or are self-employed
- You’ve had significant changes like marriage, divorce, or moving states
- You’re facing IRS penalties or back taxes
- You’re planning to make backdoor Roth IRA contributions
Look for credentialed professionals such as CPAs, EAs, or tax attorneys. You can use IRS’s Directory of Tax Preparers to find qualified help.
Bonus: State Tax Extensions
Most states accept the federal extension as proof for state purposes, but some require a separate form. Always check your state’s Department of Revenue website.
Popular state tax extension links:
Final Thoughts
If you’re not ready to file your taxes, it’s better to submit a tax extension than to file incorrectly or miss the deadline entirely. As long as you understand the difference between filing and paying, and follow the proper steps, filing an extension can be a stress-relieving move.
In 2025, with improved digital tools and easier payment methods, submitting a tax extension is more accessible than ever. Don’t wait until the last minute — take control of your tax season and make informed, timely decisions to avoid unnecessary penalties and stress.
Related Reads from MoneySuggester:
