Don't Panic! How to File a Tax Extension on TurboTax and Get More Time
Hey there! Feeling the pressure of the tax deadline looming? You're not alone! Many people find themselves needing a little extra breathing room when it comes to filing their taxes. The good news is, filing a tax extension is a perfectly normal and straightforward process, especially with a tool like TurboTax at your side. It can save you from late-filing penalties and give you the time you need to gather all your documents and ensure your return is accurate.
But remember, an extension to file is not an extension to pay. If you expect to owe taxes, you should still pay an estimated amount by the original deadline to avoid interest and penalties. We'll cover that too!
Let's walk through this step-by-step, so you can confidently file your extension and ease that tax season stress.
Step 1: Determine if an Extension is Right for You
Before you dive into the mechanics of filing, take a moment to consider why you need an extension.
Common Reasons for Filing an Extension:
Missing Documents: Perhaps you're still waiting on a crucial W-2, 1099, K-1, or other important tax forms.
Unexpected Life Events: A sudden illness, family emergency, or major life change can make it impossible to focus on taxes.
Complex Tax Situation: If your taxes are more complicated this year due to investments, self-employment, or other factors, you might need more time to ensure everything is reported correctly.
Simply Running Out of Time: Life happens! Sometimes, despite your best intentions, the deadline just creeps up too fast.
Important Considerations:
Federal vs. State: Filing a federal extension does not automatically extend your state tax filing deadline. You'll need to check your state's specific requirements. Some states offer automatic extensions if you've filed a federal one, while others require a separate form.
Payment Due Date: As mentioned, an extension grants you more time to file your return, not to pay any taxes you owe. If you anticipate owing money, you should still pay an estimated amount by the original tax deadline (typically April 15th for most individuals, or the next business day if April 15th falls on a weekend or holiday).
Avoiding Penalties: Filing an extension prevents the "failure-to-file" penalty, which can be significant (5% of the unpaid taxes for each month or part of a month that a tax return is late, up to 25% of your unpaid taxes). However, the "failure-to-pay" penalty (0.5% of the unpaid taxes for each month or part of a month, up to 25% of your unpaid taxes) will still apply if you don't pay by the original deadline.
Step 2: Estimate Your Tax Liability (Crucial for Payment!)
This step is absolutely vital if you think you might owe taxes. Even though you're extending your filing deadline, you still need to pay any estimated taxes due by the original deadline to avoid penalties and interest.
How to Estimate:
Use TurboTax's Tools: If you've already started your return in TurboTax, it will likely have an estimated tax liability based on the information you've entered.
Previous Year's Return: Your previous year's tax return can be a good starting point. Adjust for any significant changes in income, deductions, or credits this year.
Rough Calculations: Gather your main income sources (W-2s, 1099s) and significant deductions/credits. You can do a quick mental calculation or use online tax estimators (like TurboTax's TaxCaster) to get a ballpark figure.
Aim High (Slightly): It's often better to overpay slightly than underpay. If you overpay, you'll get the difference back as a refund when you eventually file your return. If you underpay, you could face penalties and interest.
Step 3: Filing Your Federal Tax Extension with TurboTax
TurboTax makes filing a federal extension (Form 4868) incredibly easy. You have a couple of primary options within TurboTax:
Option A: Filing from within Your Started TurboTax Online Return
This is often the most convenient method if you've already begun working on your taxes in TurboTax.
Log In and Access Your Return:
Go to the TurboTax website and sign in to your account.
Open or continue your tax return for the current tax year.
Navigate to the Extension Section:
Look for a "Tax Tools" or "File an extension" option. The exact wording and location might vary slightly depending on your TurboTax product and the current year's interface.
You can often find it by:
Clicking on "Tax Tools" in the left-hand menu, then selecting "Tools," and then choosing "File an extension."
Searching for "extend" in the search bar or help menu within TurboTax and selecting the "Jump to" link related to filing an extension.
Some versions may have a direct "File an extension" link on the home screen or "More" menu.
Confirm Extension Request:
TurboTax will likely ask if you want to file an extension. Answer "Yes" and click "Continue."
Enter Your Information:
The system will prompt you to confirm your personal details, such as your name, address, and Social Security Number (SSN). If you're filing jointly, you'll need your spouse's SSN as well.
You'll also be asked for your Adjusted Gross Income (AGI) from the previous tax year. This is a security measure to verify your identity. If you don't have it, there are options to retrieve it or, in some cases, enter "0" if you didn't file a return last year.
Enter Estimated Tax Payment (If Applicable):
This is where your estimation from Step 2 comes in. TurboTax will ask for your estimated total tax liability for the year and any payments you've already made (through withholding, estimated payments, etc.).
Based on this, it will calculate any balance due that you should pay with your extension.
You'll have the option to make a payment directly through TurboTax using your bank account (direct debit) or a credit/debit card. Paying your estimated taxes directly through IRS Direct Pay is also an excellent option, as it automatically registers your extension.
Review and E-File:
Carefully review all the information you've entered.
Once everything looks correct, proceed to e-file your extension. TurboTax will guide you through the submission process and confirm when your extension has been accepted by the IRS.
It's highly recommended to save or print a PDF copy of your e-filed extension for your records.
Option B: Using TurboTax Easy Extension (for Federal Only)
If you haven't started your full tax return yet and just want to file the extension quickly, TurboTax offers a dedicated "Easy Extension" service.
Visit the Easy Extension Page:
Go to the TurboTax Easy Extension website (you can usually find this by searching "TurboTax Easy Extension" online).
Log In:
Sign in to your existing TurboTax/Intuit account or create a new one if you don't have one.
Follow On-Screen Prompts:
The process will be streamlined, asking for essential information like your name, SSN, and your estimated tax payment (if you plan to make one).
You'll have the option to pay any estimated taxes due directly.
Submit and Confirm:
Review the details and submit your extension. You'll receive confirmation when the IRS accepts it.
Again, make sure to save or print a copy for your records.
Step 4: Filing Your State Tax Extension
This is where things can get a little more varied. As mentioned, a federal extension does not automatically cover your state taxes in all cases.
Sub-heading: Check Your State's Requirements
Automatic Extension: Some states, like California, Wisconsin, or Alabama, grant automatic extensions if you've filed a federal extension, and you might not need to do anything further besides paying any state taxes you owe.
Specific State Forms: Many states, however, require you to file a separate, state-specific extension form by their original tax deadline.
No Income Tax States: If you live in one of the states that don't impose a state income tax (e.g., Florida, Texas, Washington, Nevada, etc.), you obviously won't need to file a state extension.
Sub-heading: How to File a State Extension with TurboTax:
From within Your State Return: If you're using TurboTax for your state return, often, once your federal extension is accepted, you'll find an option within the state section to file an extension.
Go back into your state return in TurboTax.
Look for a prompt or section like "Need more time to file?" or "File an extension" – this is usually found toward the end of the state interview or under "Other Situations."
Follow the on-screen instructions. TurboTax will guide you through the specific state form (if required) and allow you to e-file it or provide instructions for printing and mailing.
Directly from State Tax Authority: If TurboTax doesn't offer direct e-filing for your state's extension, or if you prefer to go directly, you can visit your state's department of revenue or taxation website. Search for "tax extension" or "Form [Your State's Extension Form Number]" (e.g., Form IT-370-PF for New York).
Paying Estimated State Taxes: Just like with federal taxes, if you owe state taxes, you must pay your estimated state tax liability by the original state deadline to avoid penalties and interest, even if you're filing an extension. TurboTax will usually offer options to pay these estimated state taxes directly.
Step 5: Keep Records and Prepare for Your Extended Deadline
Once your extension is filed and accepted (both federal and state, if applicable), you've bought yourself some valuable time!
Confirmation: Ensure you have confirmation that your extension was accepted by the IRS and your state. Save any confirmation numbers or emails.
Organize Documents: Use this extra time wisely! Gather any remaining tax documents, organize your records, and ensure you have all the information needed to complete your return accurately.
Final Filing: Remember your new deadline (typically October 15th for federal returns). Make sure to file your complete tax return before this extended deadline to avoid any further penalties.
Frequently Asked Questions (FAQs)
How to check if my TurboTax extension was accepted?
TurboTax will provide you with an e-file confirmation once your federal extension (Form 4868) has been successfully accepted by the IRS. You should receive an email confirmation, and the status will also update within your TurboTax account. For state extensions, the confirmation process may vary by state.
How to know if I need to pay taxes with my extension?
You need to pay estimated taxes with your extension if you anticipate owing money to the IRS (or your state) for the tax year. An extension only gives you more time to file, not to pay. Use your prior year's return and current year's income/deduction estimates to determine if you'll owe.
How to find my Adjusted Gross Income (AGI) for filing an extension?
Your AGI is on your previous year's tax return (Form 1040, line 11). If you filed with TurboTax last year, you can access your prior year's return by logging into your TurboTax account. If you don't have access, you can request a tax transcript from the IRS.
How to file an extension if I don't owe taxes?
Even if you don't owe taxes (or expect a refund), it's still a good idea to file an extension if you can't file on time. While you won't face a "failure-to-pay" penalty, you could still be subject to a "failure-to-file" penalty if you don't file at all by the original deadline.
How to pay my estimated taxes when filing an extension?
When filing an extension through TurboTax, you'll typically have the option to pay your estimated taxes directly from your bank account (direct debit) or by credit/debit card. Alternatively, you can pay directly through the IRS website using IRS Direct Pay, which also automatically registers your extension.
How to get a state tax extension if my state isn't supported by TurboTax for extensions?
If your state's extension isn't directly supported for e-filing within TurboTax, you'll need to visit your state's Department of Revenue or Taxation website. They will have specific forms and instructions for filing an extension, which you may need to print and mail.
How to calculate estimated tax payments if my income is irregular?
If your income is irregular, it can be challenging to estimate. Consider using a tax estimator tool, or base your estimate on your best guess for the year. You can also adjust your estimated payments throughout the year if your income changes significantly. It's often safer to slightly overpay than underpay.
How to avoid penalties after filing an extension?
To avoid penalties, file your complete tax return by your extended deadline (typically October 15th). Also, ensure you paid at least 90% of your total tax liability by the original April deadline to avoid "failure-to-pay" penalties and interest.
How to know if I'm "out of the country" for a special extension?
The IRS generally considers you "out of the country" if you are a U.S. citizen or resident alien living outside the U.S. and Puerto Rico, or if you are in military or naval service outside the U.S. and Puerto Rico. This usually grants an automatic two-month extension to file and pay without specifically requesting it.
How to ensure my extension is valid?
To ensure your extension is valid, you must properly estimate your tax liability and file Form 4868 (federal) or the appropriate state form by the original due date of your return. If e-filing through TurboTax, ensure you receive confirmation of acceptance from the IRS and/or your state. Keep records of your filing.