Should You Extend Your Tax Return in 2025?
Tax season can feel like a sprint to the finish line, especially if you are juggling a busy schedule or waiting on last-minute paperwork. If April 15 is creeping up and you are not ready to file your taxes, don’t panic—extending your tax return is a straightforward option that can buy you some breathing room. Here’s everything you need to know about extending your tax return, why you might want to do it, and how to make it happen.
Why Extend Your Tax Return?
Life happens. Maybe you are missing a crucial W-2, your side hustle’s receipts are a mess, or you just need more time to ensure your deductions are airtight. Filing an extension gives you an additional six months to get your ducks in a row, pushing your federal tax return deadline from April 15 to October 15. It’s a safety net that can help you avoid rushed mistakes—or worse, late-filing penalties.
One key thing to understand: an extension to file is not an extension to pay. If you owe taxes, you’ll still need to estimate and pay what’s due by the original deadline to avoid interest and penalties. More on that later.
Who Can File for an Extension?
Good news—pretty much anyone can request a tax extension! Whether you are an individual taxpayer, a small business owner, or someone with a complex financial situation, the IRS offers this option to all. Common reasons people extend include:
Missing documentation (like a 1099 or K-1 form)
Needing more time to maximize deductions or credits
Dealing with a personal emergency or unexpected life event
Working with a tax professional who can spend more time with you once their busy season calms down
As of today, March 12, 2025, we are still a month out from the 2025 tax deadline (April 15), so you’ve got time to plan ahead.
How to File for an Extension
The process is simpler than you might think. Here’s how to do it:
Use Form 4868: The official way to request an extension is by filing IRS Form 4868, “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.” It’s a short form that asks for basic info like your name, address, and Social Security number, plus an estimate of your tax liability.
File by April 15: You need to submit Form 4868 by the regular tax deadline (April 15, 2025, for the 2024 tax year, unless it’s adjusted for weekends or holidays).
Electronic or Paper Options: You can e-file Form 4868 through tax software or the IRS Free File service, or mail it in if you prefer the old-school route. E-filing is faster and gives you instant confirmation.
No Explanation Needed: The extension is automatic—you don’t need to justify why you are asking for more time. The IRS grants it no questions asked.
Pay What You Owe: Estimate your tax liability and send a payment with your Form 4868 if you owe anything. This avoids late-payment penalties and interest, which start accruing after April 15.
Alternatively, if you use a tax professional or software like TurboTax or H&R Block, they can often handle the extension request for you—just check with them.
Paying Taxes During an Extension
Let’s clear up a common misconception: extending your filing deadline doesn’t mean you can delay paying what you owe. The IRS expects you to pay at least 90% of your total tax bill by April 15 to avoid a failure-to-pay penalty (currently 0.5% per month of the unpaid amount, plus interest). If you are not sure what you owe, make your best guess based on last year’s return or any income records you have. Overpaying is fine—you’ll get a refund later when you file.
Pros and Cons of Extending
Pros:
Avoids rushed errors that could trigger an audit or missed deductions
Gives you time to consult a tax pro or gather records
Reduces stress if you are not ready by April
Cons:
You still need to estimate and pay by April 15
Interest accrues on any unpaid balance after the original deadline
Some states may have different rules (more on that below)
What About State Taxes?
Most states align with the federal extension, but not all. If you are filing a state return, check your state’s tax agency website. Some states automatically extend if you file a federal extension, while others require a separate form. Don’t assume—double-check to avoid surprises.
Final Tips for a Smooth Extension
Start Early: Even if you are extending, estimate your taxes now to avoid a last-minute scramble.
Keep Records: Save proof of your extension request and payment (e-file confirmation or postmarked envelope).
Mark Your Calendar: October 15, 2025, will be your new deadline—don’t miss it, as there’s no second extension for individuals (businesses have different rules).
Talk to a Tax Pro: If your situation feels overwhelming—say, you’ve got rental properties, crypto trades, or a new business—consulting a tax professional can save you time and ensure you are not leaving money on the table.
Extending your tax return isn’t a sign of failure—it’s a smart move when you need it. Whether you are a perfectionist chasing every last deduction or just someone who got hit with a curveball, that extra six months can make all the difference. So, take a deep breath, file Form 4868, and give yourself the gift of time this tax season.
