Can I file a tax extension so I have more time to raise money for the taxes I owe?
If paying the tax when it’s due would cause you an undue hardship, you can file for a tax payment extension using Form 1127. You must file this extension by April 15. However, the IRS usually won’t grant an extension for more than six months. Additionally, you’ll have interest on the tax not paid by April 15, so you’ll have to pay more in the end. You must pay the tax before the extension runs out or you might be subject to penalties.
If I file a normal tax extension with Form 4868, can I wait to pay taxes until I file?
No. Even if you decide to file a tax extension, you still must make your tax payment by April 15.
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% of this year’s tax liability
- 100% of last year’s tax liability
If your adjusted gross income (AGI) was more than $150,000 (or $75,000 if your filing status is married filing a separate return), you must pay 110% of last year’s tax liability
If you’re having trouble paying your taxes by the deadline, some other payment options outside of a tax filing extension 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.
Changes to the Child Tax Credit in 2018 may affect you in 2019. Learn about new Child Tax Credit changes and other Tax Cuts and Jobs Act details at H&R Block.
Learn the value of IRS tax transcripts from the experts at H&R Block. Find out why you may need them, where to get them, and how to decode them.
Learn more about like-kind exchange rules and get tax answers at H&R Block.
The Taxpayer Advocate Service is requesting information from you. Learn more about IRS letter 2904 from the tax experts at H&R Block.