Filing a tax extension: How to do it, what taxpayers in disaster areas should know

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FILE - In this photo illustration, a 1040 U.S. Individual Income Tax Return document is seen on a desk on April 15, 2024 in North Haledon, New Jersey. (Photo illustration by Michael Bocchieri/Getty Images)

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Tax Day is this week, falling on Tuesday, April 15. If you still need to file by then, don't panic. You can request an extension, granting you additional time to submit your information.

Additionally, those who experienced a weather disaster this past year are granted an automatic extension. 

Here’s what to know: 

Tax file extension

Big picture view:

If you need more time to file your taxes, you can request an extension by filing Form 4868 before April 15. This extends your filing deadline to October 15th.

Dig deeper:

The extension is only for filing your return - not for the due date on any taxes you may owe. Make sure you pay any tax you owe by April 15 to avoid late fees. 

Is there a penalty for filing an extension? 

Filing for a tax extension incurs no penalty, provided it's submitted before the deadline. However, if you're anticipating a refund, it won't be issued until your taxes are filed. The IRS recommends electronic filing as the fastest method for tax submission.

Disaster area tax extension

If your life has been upended by a wildfire, hurricane, flood, tornado, or another disaster this past year, the IRS recognizes you may need more time to file your taxes and grants you an automatic extension.

Dig deeper:

The IRS keeps an official list online of all disaster locations that qualify you for an extension to file. You can view that list here to see if you’re included. 

For the past year, individuals and businesses affected by Hurricanes Helene and Milton qualify for tax relief, as well as disaster victims in parts of Alabama, Florida, Georgia, North Carolina, South Carolina, New Mexico, Tennessee, Virginia, West Virginia, and Alaska.

What's next:

Taxpayers in these areas have until May 1 to file returns and make payments, and there's no need to do any additional paperwork to receive that extra two week grace period. 

Individuals and businesses in southern California affected by wildfires and straight-line winds also qualify for automatic extensions due to disaster. Taxpayers in the relevant counties have until Oct. 15 to file returns and make payments.

By the numbers:

Any interest or fees that normally accrue on late payments won't accrue during disaster extensions. Most direct disaster relief is also not counted as income, and so is not taxed.

Disaster area tax deductions

A tax deduction can be claimed for loss from disaster that’s not paid for or reimbursed by insurance. 

Dig deeper:

This so-called "casualty loss" doesn't result in dollar-for-dollar reimbursement, but it does lower your tax burden, which can mean more cash to help pay for recovery.

What's next:

Form 4684, which you include when you file your return, walks you through the relevant steps for calculating your casualty write-off.