Tax deadlines have a way of sneaking up on you, and if you’re scrambling to get everything in order before April 15, you’re not alone. The good news? The IRS offers a simple solution: Form 4868. This form grants you an automatic six-month extension to file your federal income tax return, pushing the deadline to October 15.
But here’s the catch—while Form 4868 buys you more time to file, it doesn’t extend your payment deadline. Understanding how to correctly submit this form can help you avoid penalties and unnecessary stress. Let’s break it down step by step.
What is Form 4868?
IRS Form 4868, officially known as the Application for Automatic 6-Month Extension for U.S. Individual Income Tax Return, allows individuals, sole proprietors, and single-member LLCs (treated as sole proprietors or disregarded entities) to request extra time to file their tax returns.
By submitting this form, taxpayers can extend their filing deadline from April 15 to October 15, giving them additional time to gather necessary documents and finalize their tax returns.
To qualify for an extension, you must:
- Estimate your 2024 tax liability based on available information.
- Enter the estimated tax liability on Line 4 of Form 4868.
- Pay the estimated tax amount by the original due date.
| Note: U.S. citizens living abroad automatically receive a two-month extension (until June 15). If additional time is needed, Form 4868 grants another four-month extension, totaling six months. |
Why is Form 4868 Important?
If you need extra time to file, Form 4868 helps you avoid late-filing penalties, which can be costly. However, keep in mind:
- The extension only applies to filing, not payment. Any taxes owed must still be paid by April 15 to avoid interest and penalties.
- Submitting Form 4868 late or incorrectly could result in penalties, so it’s crucial to file it on time and accurately.
Which Tax Forms Are Covered by IRS Form 4868?
IRS Form 4868 applies to individual income tax returns, allowing taxpayers to request an automatic six-month extension. The forms covered by this extension include:
- Form 1040: The standard individual income tax return for U.S. citizens and residents.
- Form 1040-NR: For non-resident aliens filing U.S. income tax returns.
- Form 1040-SR: This version of Form 1040 is specifically designed for senior taxpayers aged 65 and older.
- Form 1040-SS: For self-employed individuals who need to report their income and pay Social Security and Medicare taxes, typically for those living in U.S. territories.
How to Complete Form 4868?
Filing Form 4868 is the first step to securing a six-month extension for your federal income tax return. Follow these steps to ensure accurate completion.
Part I- Identification
- Line 1: Begin by providing your full name and mailing address, including your street, city, state, and ZIP code on Line 1.
- Line 2 and 3: Enter your Social Security Number (SSN) on Line 2. If you’re filing a joint tax return, include your spouse’s SSN on Line 3.
Part II—Individual Income Tax
To estimate your tax liability, fill out the following sections:
- Line 4: Enter your estimated total tax liability for 2024.
- Line 5: Provide the total amount of tax payments you expect to report on your Form 1040 or other applicable return.
- Line 6: Subtract Line 5 from Line 4 to determine the balance due (if any).
- Line 7: Enter the amount you are paying with Form 4868 to cover any remaining tax balance.
| Note: If your total payments (Line 5) exceed your estimated tax liability (Line 4), you may enter “0” on Line 6. |
- Line 8: Check this box if you are a U.S. citizen and living out of the country.
- Line 9: Select this box if you usually did not receive wages subject to U.S. income tax withholding, and your Form 1040-NR is due on June 16, 2025.
If neither 8 nor 9 applies, leave these boxes blank.
When is the Deadline to File Form 4868?
The deadline to file personal tax extension Form 4868 is the same as the deadline for the tax return for which you request an extension. For the 2024 tax year, the deadline to efile Form 4868 is April 15, 2025.
If you’re living outside the U.S., the extended deadline is June 15, 2025, with an additional four-month extension granted through Form 4868.
Late Filing Penalties & Why You Should File Form 4868
If you fail to file Form 4868 by the deadline or do not file your tax return on time, you may face a late filing penalty.
- The IRS typically charges a penalty of 5% of the unpaid taxes for each month or part of a month your return is late, up to a maximum of 25% of the total taxes due.
- If the tax return is more than 60 days late, the minimum penalty is $450 or the remaining balance of your tax due—whichever is smaller.
Filing Form 4868 on time helps you avoid this penalty by granting you an automatic six-month extension to submit your tax return, though any taxes owed must still be paid by the original deadline.
Final Thoughts
Filing IRS Form 4868 is a simple yet crucial step if you need extra time to prepare your tax return. This automatic six-month extension allows you to avoid late-filing penalties and ensures you have sufficient time to organize your documents and accurately complete your return.
By submitting Form 4868 on time and making necessary payments, you can stay compliant with IRS regulations and avoid unnecessary financial consequences. If you’re running out of time, take advantage of this extension to file your tax return correctly and stress-free!