Summarize this content to 2000 words in 6 paragraphs As the month of March starts to tick by and the 2025 tax return deadline looms nearer, Newsweek has outlined how you can apply for a tax return extension, giving you more time to file your returns.Why It MattersIf you’re unable to file your 2024 federal income tax return by the standard deadline of April 15, 2025, you risk facing penalties and interest on any unpaid taxes.The traditional penalty for an individual who has not filed their taxes by the deadline is 5 percent of the tax due for each month the return is late. The penalty accrues up to a maximum of 25 percent.However, the Internal Revenue Service (IRS) allows you to request an extension, giving you more time to submit your return and avoid the late-filing penalties.
Stock image of an Internal Revenue Service form 1040 for tax year 2024 for a U.S. Individual Income Tax Return.
Stock image of an Internal Revenue Service form 1040 for tax year 2024 for a U.S. Individual Income Tax Return.
Jon Elswick/AP
What To KnowMany taxpayers find the extension process useful when they need extra time to gather documents or seek professional advice.It’s important to remember that a tax extension is not an extension on the time to pay your taxes, but an extension on the time to file your returns.To avoid a penalty, estimate and pay any owed taxes by April 15, 2025, and file an extension before the deadline to have more time to sort out the paperwork.How Can You Apply for an Extension?You can request an automatic six-month extension, pushing your tax filing deadline to October 15, 2025.There are three ways you can apply for an extension. You can pay what you owe using an online payment option, such as by debit card, credit card or digital wallet or from your bank account or IRS account as well as a number of other options.While paying your taxes via any of these methods, you can tick a box to indicate that you are paying as part of applying for an extension.You don’t have to file a separate extension form and you will receive a confirmation number of your extension in your records.Another option would be filing an extension electronically through the IRS Free File system, an option available to all taxpayers.You can also complete Form 4868, either online with an IRS e-filing partner, by mail, or with a tax professional.Who Is Eligible for an Extension?Most taxpayers can apply for an extension, including individuals, self-employed workers and businesses.There are also automatic extensions of two months for U.S. citizens or resident aliens, the term given to those who are foreign-born U.S. citizens, who are living outside of the U.S. and Puerto Rico on the regular due date of their tax return.U.S. citizens and resident aliens abroad can also file for an additional extension of four months if they complete Form 4868.Those affected by “disaster situations” are also eligible for automatic extensions and in 2025, these include victims of the landslides, flooding and severe storms in Kentucky and victims of the California wildfires.Those serving in the military out of the U.S. and Puerto Rico also receive an automatic two-month extension.What’s NextIf you need an extension, be sure to request one by any of the above methods, either electronically or by mail, before April 15, 2025, in order to avoid penalties.
