What to Do After You've Filed an Income Tax Extension (2024)

Checking federal tax extension status

If you sent your extension request in on time, it should be granted. To confirm receipt, it's easiest if you use software like TurboTax Easy Extension, since you'll get a confirmation from TurboTax within 48 hours.

No confirmation will be provided if you use a paper Form 4868 to request an extension and send it through the U.S. mail or an authorized private delivery service. If that's the case, you'll have to contact the Internal Revenue Service (IRS) to ask about the status of your extension.

Checking state tax extension status

If your state requires that you file an extension application separate from the federal tax extension application, contact the taxing authorities in your state to see how you can check on its status.

Paying any tax due

The standard tax extension allows you to file your tax return after the usual deadline. However, it doesn't buy you more time to pay any taxes you may owe. That means you have to estimate your tax balance and pay that amount by the April filing deadline.

But even if you can’t pay it all by the April deadline, pay as much as you can. Penalties and interest are based on how much you owe and for how long.

• Late payment penalties are calculated at 0.5% of the unpaid tax balance per month.
• The maximum you can be charged in late payment penalties is 25% of the unpaid tax.

For example, if your tax balance is $2,000:

• Penalty per month = $2,000 x 0.5% = $10.
• Total possible late payment penalty = $2,000 x 25% = $500.

If you live outside of the country, there is an automatic two-month extension that allows you to hold off filing and paying taxes without penalty, but you'll still be assessed interest as of the day after the April tax filing deadline.

Interest on unpaid tax compounds daily from the original due date of the return until the date you pay in full. This results in a daily recalculation of the principal amount plus accrued interest.

TurboTax Tip: The IRS interest rate on unpaid taxes is adjusted quarterly. The rate is 8% for the first two quarters of 2024.

Filing tax returns on time

Generally, the due date for filing your income taxes is April 15. However, in some years it can fall on a weekend or a holiday. Therefore, the tax deadline can change to April 16, 17, or even 18 depending on the situation.

If you request and are granted a federal tax extension, you typically have until October 15to file you tax return.

• In some states, federal extensions automatically extend your state income tax deadline.
• Other states, like New York, require a separate extension request.

When tax extensions are rejected

Even when filed before the deadline, some tax extension requests are rejected on or after that date. You'll get a notice from the IRS if your extension request is denied. While the reasons behind this vary, the most common ones are:

• Misspellings, switched numbers and other errors on the extension request form.
• Out-of-date information, like old addresses or last names that don't match up to the IRS records.

In these cases, the IRS provides a window of time—typically five days—in which you may fix issues and correct errors with your request in order to file again.