Tax Day is almost here. Yes, you can still get an extension from the IRS.
Time is running out to file your tax return and meet the deadline on April 15. (That’s tomorrow.)
This year’s tax season has been a doozy. Provisions in the One Big Beautiful Bill Act, including new and expanded deductions, have pushed the average refund amount to nearly $3,500. The changes have also likely left some taxpayers cautious or confused, with the total number of returns received by the federal government lower for the week of April 3 than the same week last year.
But there’s still time to pay your bill — or get the refund you’re owed — and avoid penalties. Importantly, you also have right up until the deadline to contribute to your IRA or Roth IRA for 2025.
Here’s what you need to know.
Nearly anyone can extend their filing deadline to Oct. 15, though tax payments must be submitted to the IRS by April 15 regardless.
The penalty for failing to file by the deadline is up to 10 times more severe than the penalty for not paying your tax bill in time, according to Andy Phillips, vice president of the Tax Institute at H&R Block, underscoring just how important it is to apply for extra time if needed. For each month your return is late, you’ll be fined 5% of your total tax bill, up to 25%, while the failure-to-pay penalty is 0.5% of unpaid taxes each month, up to 25%.
“Requesting an extension is better than nothing,” Phillips said. “Even if you can’t submit payment, you’re going to save yourself money in the long term if you file by the due date — a tax return if you’re ready. If not, an extension.”
There are a few ways to get an extension. When paying your tax bill online — even if it’s only for an estimated amount based on your prior payments and adjusted gross income — you can note that you’re doing so as a part of filing for an extension and receive a confirmation number, according to the IRS.
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You can also file Form 4868 via mail, tax software, or a tax professional and receive an automatic extension — though, again, you have to estimate your tax liability for the year and report what you owe if you believe you’ll have a payment due. While the form notes that an estimated tax payment isn’t necessarily required to get extra time, interest and possibly penalties will be charged for late tax payments.
“Even if you had a good reason for not paying on time, you will still owe interest,” the form states.
Filers can sign up for a payment plan if they’re unable to pay their tax bill, though fees and interest may be involved there too. That’s why it’s important to pay what you can by the deadline.
One option: Request a short-term payment plan, and pay your bill in full in 180 days if you owe less than $100,000 in combined tax, penalties, and interest. There’s no setup fee.
Another choice: Request a longer-term installment agreement if you owe less than $50,000 and you’re up to date on all past-due taxes. There’s a $22 setup fee if you agree to pay monthly with automatic withdrawals, or $69 if you don’t do automatic payments. The fee may be waived or reduced if you’re considered low-income.
In both cases, interest and penalties will likely accrue until the balance is fully paid. As a result, the IRS notes that some “loan costs may be lower than the combination of interest and penalties the IRS must charge under federal law.” Phillips advised, “Developing a plan as soon as possible is likely going to save you both money and a lot of IRS notices in the long run.”
It’s worthwhile this year to read the fine print of the One Big Beautiful Bill Act and its sweeping tax changes, which also made it advantageous in some cases to itemize deductions rather than take the simpler standard deduction.
Meanwhile, taxpayers for the first time this year can also deduct up to $10,000 of car loan interest on recently purchased new vehicles assembled in the US, as well as take deductions up to a certain amount on tips and overtime, regardless of whether they’re itemizing or taking the standard deduction.
Those tax changes for tipped workers and overtime earners, while offering ample savings, might have raised a few questions when filing, which should be smoothed out next year.
“It’s a transitional year — employers weren’t necessarily clearly tracking, in particular, overtime, in a way that was easily translatable. You’ve got to remember this bill was passed in the middle of the tax year,” Phillips said. “Some folks, they may have it shown on their W-2 how much overtime they worked, maybe not.”
Seniors also get an extra break thanks to the OBBBA.
The new rule gives eligible taxpayers age 65 and older an additional $6,000 deduction. Married couples filing jointly can claim up to $12,000 if both spouses qualify.
It won’t help everyone equally, though. The deduction is temporary, subject to income limits, and only lowers your taxable income — it’s not a dollar-for-dollar reduction to your tax bill. You can claim it whether you take the standard deduction or itemize.
