Can i file an extension with turbotax

Written by a TurboTax Expert • Reviewed by a TurboTax CPA

Updated for Tax Year 2021 • October 16, 2021 09:40 AM

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While the IRS requires you to file Form 4868 in order to request a tax extension, each state has its own requirements for obtaining a similar extension. Some states such as California offer automatic extensions to all taxpayers, while other states require you to file a specific form by the original due date of the return. Here are some tips to help walk you through what you need to do when filing state taxes in your area:

Some states including Wisconsin, Alabama and California offer automatic extensions to file your state income tax return without having to file any additional forms. Other states, such as New York, will grant you a extension but you must request it. For the nine states that do not impose a state income tax, you don’t even have to file an income tax return, let alone request an extension. Reach out to your state tax authority to confirm which steps you will need to follow.

Unlike IRS Form 4868, which applies to all taxpayers throughout the country, you must file the correct state-specific form to obtain the extension. TurboTax also offers TurboTax Easy Extension, an online tool that allows you to file extensions for both your federal and state tax returns.

An extension of time to file your state income tax return does not also mean an extension to pay any taxes you may owe. If you end up owing owe tax at the end of the year, you may be subject to late-payment penalties if you fail to submit a payment by the original tax deadline. To avoid paying any penalties, it’s a good idea to calculate a quick estimate of what you might owe and submit a payment. Even if you overpay, you can always claim a refund in a few months when you eventually file your state tax return.

To get help estimating your taxes, use TurboTax Online.

In most cases, your state tax return is due by October 15 after you file for an extension. However, if you fail to file a complete return by this date, your state may charge you penalties just for filing your return late.

Remember, with TurboTax, we'll ask you simple questions about your life and help you fill out all the right tax forms. With TurboTax you can be confident your taxes are done right, from simple to complex tax returns, no matter what your situation.

Written by a TurboTax Expert • Reviewed by a TurboTax CPA

Updated for Tax Year 2021 • August 16, 2022 04:16 PM

For information on the third coronavirus relief package, please visit our “American Rescue Plan: What Does it Mean for You and a Third Stimulus Check” blog post.  

Business extensions

If you need more time to complete your 2021 business tax return, you can request an extension of time to file your return. However, even with an extension, you need to estimate how much you owe (if you owe) and send in that amount by the due date.

Most business tax returns can be extended by filing Form 7004: Application for Automatic Extension of Time to File by the original due date of the return.

If your business is organized as an S corporation, the income tax return or extension is due by the 15th day of the 3rd month after the end of your tax year. If the business is a C corporation then the extension is due by the 15th day of the 4th month after the end of your tax year.

For example, if your C corporation is a calendar year taxpayer with a December 31 year end, you must file a 2021 tax return or extension request by April 18, 2022.

If your business is organized as a partnership, your income tax return or extension is due by the 15th day of the 3rd month after the end of your tax year. For example, if your partnership is a calendar year taxpayer, with a December 31 year end, you must file a 2021 tax return or extension request by March 15, 2022.

The IRS may hit your business with costly penalty and interest charges if you underestimate your taxes, file your return late, or do not furnish certain information by the due date.

The dates above assume your business entity is a calendar year taxpayer. In the event you are a fiscal year taxpayer, please adjust your due dates based on the information provided above. For example, the due date for the tax return of a corporation for the fiscal year ending March 31, 2021 is July 15, 2021.

An exception to this - corporations with a fiscal year from July 1 to June 30, the initial deadline will remain September 15th (15th day of the 3rd month following the end of the fiscal year) and the extension deadline remains February 15 (five months after the first deadline). This exception applies for fiscal years ending through June 30, 2026.  With fiscal years ending June 30, 2027, the filing deadline moves to October 15th (the 15th day of the 4th month following the end of the fiscal year) and the extended deadline moves to March 15th (six months after the first deadline).

If your business has always been an S corporation, it is effectively treated as an extension of the shareholders for many tax purposes and will generally not owe any tax itself. However, if your S corporation was once a C corporation, it may owe a corporate-level tax in certain limited situations. An S corporation must provide a Schedule K-1 to all shareholders, detailing their share of the corporation's income and deductions for the tax year.

• In the event your calendar-year S corporation owes taxes for 2021, you'll have to pay interest on the amount you fail to pay by March 15. 2022.
• If the S corporation does not pay all of the tax by that date, it may owe a penalty of 0.5% of the unpaid tax for each month the tax is not paid, up to a maximum of 25% of the unpaid tax.
• If you do not file or extend the S corporation's return by March 15 (unless another date due to holidays or weekend), it may owe a penalty of 5% of the unpaid tax for each month the return is late, up to a maximum of 25% of the unpaid tax.
• If the S corporation fails to file its 2021 return (including a Schedule K-1 to each shareholder) on time, it may also owe an additional penalty of $210 per shareholder per month for each month the return is late, up to a maximum of 12 months.
• If you think you may need more time to prepare the S corporation's return, you should file for an extension using Form 7004. The due date for your calendar-year 2021 S corporation return will be extended until September 15, 2022.

Like an S corporation, a partnership does not owe tax itself, but is generally treated as an extension of the partners. Partnerships must provide a Schedule K-1 to all partners, detailing their share of the partnership's income and deductions for the year.

• If you do not file your 2021 partnership return (including a Schedule K-1 for each partner) on time, you may owe a penalty equal to $210 per partner for each month the return is late, up to a maximum of 12 months.
• The due date for a calendar-year partnership's 2021 return is March 15, 2022. If you think you may need more time to prepare your return, you should file for an extension using Form 7004. The due date for your partnership return will be extended until September 15, 2021.

State guidelines for filing extensions vary. In many cases, unless you owe state taxes, your federal automatic extension can be used to extend your state return(s) as well. Refer to the tax form instructions or tax help for your state(s) before you request a state extension.

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