Here’s how to file a federal tax extension for free in minutes

If you need more time on your taxes, experts say, there’s a fast and free way to file a federal tax extension online.

This season, 1 in 4 Americans don’t feel ready to file their taxes — and 29% admit to procrastinating — according to a January survey from IPX1031, an investment property exchange service.

Fortunately, applying for a federal tax extension “takes a few minutes,” according to Tommy Lucas, a certified financial planner and enrolled agent with Moisand Fitzgerald Tamayo in Orlando, Florida.

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There’s still time to reduce your tax bill or increase your refund before the deadline

The federal tax deadline is April 15 for most taxpayers. But you have until that deadline to file an extension, which pushes the deadline back six months, to October 15. Some taxpayers already receive a federal extension due to natural disaster declarations.

Without the extension, your balance triggers the penalty for failure to file, which is equivalent to 5% of your unpaid taxes per month or part of a month, capped at 25%.

However, “extension of filing is not extension of payment,” cautioned CFP Sean Lovison, founder of Purpose Built Financial Services in the Philadelphia area.

“An extension gives you more time to gather the documents and complete your return, but the taxes owed are still due within the original deadline,” said Lovison, who is also a certified public accountant.

You’ll minimize penalties and interest by paying “at least the safe harbor amount,” he said.

The safe harbor amount is at least 100% of last year’s taxes. The threshold increases to 110% if your adjusted gross income from the previous year was $150,000 or more.

Taxpayers have a few free options for filing a federal tax extension.

You can fill out Form 4868 and mail it to the IRS. But experts urge filers to opt for digital options if possible.

Generally, it’s best to send information digitally to the IRS “because mail takes forever and is unreliable,” said Josh Youngblood, an enrolled agent and owner of the Youngblood Group, a tax firm based in Dallas.

The simplest option is to select “extension” when paying your estimated taxes for 2023, experts say.

This processes your extension automatically and you will not need to submit an additional form, according to the IRS.

You will see a confirmation immediately after submitting your estimated tax payment. But you should double-check the transaction in your IRS online account, Youngblood said.

There is also the option to file your extension for free online through IRS Free File, a public-private partnership between the IRS and several tax software companies, regardless of your income.