Question

Can I file a short-term tax extension so I have more time to raise money for the taxes I owe?

Answer

No. Even if you decide to file a tax extension, you still must make your tax payment April 17.

For an extension, file Form 4868 and pay the smaller of your tax liability amounts by the tax deadline to avoid a penalty:

    • At least 90.00% of this year’s tax liability
    • 100.00% of last year’s tax liability

If your AGI for 2015 was more than $150,000 ($75,000 if your filing status for 2016 is married filing a separate return), you must pay 110% of last year’s tax liability

If you file on time and can’t pay the full balance due, you can file for a short-term extension — up to 120 days — to pay the balance. Call 800-829-1040. You’ll still pay penalties and interest.

Other payment options include:

  • Pay by credit card.
  • Borrow from your 401(k).
  • Take out a personal loan.
  • Enter into an installment agreement with the IRS. Complete the online payment agreement (OPA) or Form 9465
  • Propose an offer in compromise (OIC). This is an agreement between you and the IRS that settles your tax liability for less than the full amount owed.
  • Complete Form 1127: Application for Extension of Time for Payment of Tax Due to Undue Hardship.
          Array
(
    [0] => WP_Term Object
        (
            [term_id] => 54
            [name] => Deadlines and Extensions
            [slug] => deadlines-and-extensions
            [term_group] => 0
            [term_taxonomy_id] => 54
            [taxonomy] => category
            [description] => 
            [parent] => 25
            [count] => 44
            [filter] => raw
            [cat_ID] => 54
            [category_count] => 44
            [category_description] => 
            [cat_name] => Deadlines and Extensions
            [category_nicename] => deadlines-and-extensions
            [category_parent] => 25
        )

    [1] => WP_Term Object
        (
            [term_id] => 52
            [name] => Refunds and Payments 
            [slug] => refunds-and-payments
            [term_group] => 0
            [term_taxonomy_id] => 52
            [taxonomy] => category
            [description] => 
            [parent] => 25
            [count] => 65
            [filter] => raw
            [cat_ID] => 52
            [category_count] => 65
            [category_description] => 
            [cat_name] => Refunds and Payments 
            [category_nicename] => refunds-and-payments
            [category_parent] => 25
        )

    [2] => WP_Term Object
        (
            [term_id] => 56
            [name] => Tax Brackets and Rates
            [slug] => tax-brackets-and-rates
            [term_group] => 0
            [term_taxonomy_id] => 56
            [taxonomy] => category
            [description] => 
            [parent] => 25
            [count] => 7
            [filter] => raw
            [cat_ID] => 56
            [category_count] => 7
            [category_description] => 
            [cat_name] => Tax Brackets and Rates
            [category_nicename] => tax-brackets-and-rates
            [category_parent] => 25
        )

    [3] => WP_Term Object
        (
            [term_id] => 51
            [name] => Audits and Tax Notices
            [slug] => audits-and-tax-notices
            [term_group] => 0
            [term_taxonomy_id] => 51
            [taxonomy] => category
            [description] => 
            [parent] => 25
            [count] => 274
            [filter] => raw
            [cat_ID] => 51
            [category_count] => 274
            [category_description] => 
            [cat_name] => Audits and Tax Notices
            [category_nicename] => audits-and-tax-notices
            [category_parent] => 25
        )

    [4] => WP_Term Object
        (
            [term_id] => 55
            [name] => Forms
            [slug] => forms
            [term_group] => 0
            [term_taxonomy_id] => 55
            [taxonomy] => category
            [description] => 
            [parent] => 25
            [count] => 106
            [filter] => raw
            [cat_ID] => 55
            [category_count] => 106
            [category_description] => 
            [cat_name] => Forms
            [category_nicename] => forms
            [category_parent] => 25
        )

)
          

Related Topics

Related Resources

I need to estimate tax liability because I know I have a balance due and owe taxes. How do I estimate extension tax liab

Estimate your tax liability for filing for an extension with help from the tax experts at H&R Block.

I have a question about amending tax return(s) and when to amend taxes. If I found an error on my return, which I alread

Not sure when to amend your taxes? Get information on amending your tax return. Learn more from the tax experts at H&R Block.

I need to request extension to file my state return — Specifically, I need to file Georgia tax extension. How do I file

Do you need to file for a Georgia tax extension? Learn more from the tax experts at H&R Block.

Where can I find my tax extension confirmation number?

Learn how to find your tax extension conformation number with help from the tax experts at H&R Block.