As the tax filing deadline approaches, last-minute filers still have options if they are not ready to submit their returns on time. Taxpayers can request an extension, but it must be completed by the end of the day on April 15 in order to avoid penalties for late filing.

For those who qualify, an extension provides an additional six months to file, moving the deadline to October 15. This extension is typically granted automatically as long as the request is submitted on time.

However, an extension only applies to filing paperwork and does not delay the requirement to pay any taxes owed. Taxpayers who expect to owe money must estimate the amount and submit payment by April 15. Failing to do so can result in interest charges and additional penalties.

If someone files their return late without first requesting an extension, they could face a failure-to-file penalty. This penalty is calculated at 5% of the unpaid taxes for each month the return is late, with a maximum penalty reaching up to 25%.

There are several ways to file for an extension. One option is to make a payment through the IRS online system and indicate that the payment is for an extension. Another option is to submit a request electronically through the IRS Free File service. Taxpayers can also file a paper request by completing Form 4868 and mailing it to the appropriate IRS address.

Certain groups may automatically qualify for additional time without needing to file for a standard extension. These include individuals living in federally declared disaster areas, members of the military stationed overseas or in combat zones, and U.S. citizens living abroad.

When preparing to file or estimate payments, taxpayers are encouraged to consider any recent changes to tax laws, including updated tax brackets and new credits. Being aware of these changes can help individuals reduce what they owe or maximize their potential refund.

Overall, while the deadline can feel stressful, filing for an extension offers a straightforward way to gain additional time. Still, meeting payment obligations on time remains critical to avoiding extra costs, and taxpayers are encouraged to act before the April 15 cutoff to stay in good standing.