We’re now less than a month away from the filing deadline for your 2025 federal tax return—and state returns, if you live in a state with an income tax. Filing late when you owe taxes can be costly. The IRS imposes a late-filing penalty of 5% per month (or part of a month) on any unpaid balance, up to a maximum of 25%.
If you need additional time to file, you can request an automatic six-month extension by submitting Form 4868. This extends your filing deadline to October 15, 2026. To be valid, your extension must be submitted or postmarked no later than April 15. However, due to changes in USPS postmarking procedures, it’s wise not to wait until the last minute to mail your extension.
It’s important to remember that an extension to file is not an extension to pay. If you expect to owe taxes, your payment is still due by April 15. Any unpaid balance after that date may be subject to interest (currently 7% annually) as well as a late payment penalty of 0.5% per month (or part of a month).
If you’re using tax software such as TurboTax, you can typically e-file your extension. This is the preferred method, as it provides immediate confirmation that your request has been received and processed.
Finally, be aware that state extension rules vary. Some states, like California, accept a valid federal extension, while others, such as New York, require a separate state filing. Be sure to check with your state’s tax authority to confirm the requirements.