Tax extension, late fees: What to know if you haven't filed
Tax extension, late fees: What to know if you haven't filed
MAX ZAHNMon, April 13, 2026 at 4:04 PM UTC
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Taxpayers are hurtling toward a filing deadline on Wednesday, but opportunity still beckons for filers eager to avoid a penalty for submitting late.
More than 164 million individual tax returns will have been filed by that deadline, the Internal Revenue Service said, but many of those forms will be received in the final days.
Filers who beat the deadline will position themselves for hasty refunds. Those payments are typically sent within 21 days, the IRS says. For paper returns, the IRS says turnaround time can last more than four weeks.
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Some tax filers can avail themselves of new options associated with Trump's tax and spending cut legislation enacted last year.
"Tax season 2026 brings some of the most significant tax code changes we've seen in years," Alison Flores, director of the Tax Institute at H&R Block, said in a statement.
For the first time, taxpayers can enroll in so-called Trump accounts, deposits of $1,000 made by the federal government for every baby born between 2025 and 2028.
Filers can enroll through elections on IRS Form 4547 as part of their tax return. Families can contribute up to $5,000 each year, while employers can contribute up to $2,500 annually for each employee.
Seniors, meanwhile, may opt for a new $6,000 tax deduction -- or $12,000 for a married couple -- as part of an effort to ease the tax burden for older Americans, the IRS said.
Tipped workers can deduct up to $25,000 in "qualified tips" as part of the "No Tax on Tips" initiative. The IRS defines eligible tips as those that involve "voluntary cash or charged tips received from customers, including shared tips," according to the agency’s website.
Taxpayers who received overtime pay last year may also deduct such income in accordance with a "No Tax on Overtime" effort. Filers may deduct up to $12,500 or $25,000 for joint filers, the IRS said.
Alfexe/STOCK PHOTO/Getty Images - PHOTO: Stock photo of tax forms.
Car-loan interest may also be deducted, though the policy does not apply to lease payments. The maximum annual deduction for car-loan interest is $10,000, the IRS said, but the option is unavailable for individuals who report $100,000 or more in gross income.
Standard deduction limits increased this year, allowing filers to shield larger sums from taxes. On its website, the IRS spells out the new deduction amounts available at different income levels.
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What is a tax extension?
Tardy filers can usually avail themselves of an extension, but it must be submitted before the end of the day on Wednesday.
Taxpayers can typically file an extension that lasts six months, meaning those who obtain an extension will be allowed to submit their tax forms without penalty until Oct. 15.
An extension, however, doesn't allow filers to delay payment. If you think you might owe the government money, then you must hand over the estimated amount by April 15. If not, you risk having to pay penalties and interest.
When estimating how much you owe, keep in mind changes to the tax code, such as tax brackets and new tax credits. Knowledge of those rules can help you optimize your tax refund.
Generally, the six-month extension is granted automatically, the IRS says, while also noting that the extension applies only to the time you have to file, not to the time you have to pay your estimated tax.
If you file your taxes late and don’t file for an extension first, you risk being hit with additional fees for the tardy submission. The penalty amounts to 5% of the taxes owed for each month that the filing is late, up to a maximum of 25%.
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How do you file a tax extension?
Before filing an extension, check to see if you qualify for an automatic extension. That option is available to people who live in a federally declared disaster area, members of the military stationed abroad or in a combat zone, and citizens living outside the U.S.
First, if you opt to pay the anticipated amount of tax owed, you can check off an extension-request box in the IRS online payment portal.
Alternatively, you can submit an online extension request through the government's free service, IRS Free File.
Of course, you can always go about it the old-fashioned way by mailing the extension request. If you go that way, you should fill out the Form 4868 and send it to an address listed on the IRS website. The form requires filers to estimate the amount of tax owed for the filing year.
Filers must submit their extension requests by the end of the day on April 15.
Source: “AOL Money”
