As the tax deadline approaches, many individuals and business owners find themselves waiting on missing documents, reviewing last-minute details, or simply needing more time to prepare an accurate return. In those situations, filing a tax extension can be a smart and practical solution.
For the 2025 tax filing season, the regular federal filing deadline for most individual taxpayers is April 15, 2026. Taxpayers who need additional time may request an extension, which generally moves the federal filing deadline to October 15, 2026. The key point, however, is that an extension gives additional time to file, not additional time to pay. Any tax due should still be paid by April 15, 2026, to help minimize penalties and interest.
The IRS allows taxpayers to request an automatic extension by filing Form 4868. This can usually be done electronically, through tax software, through a tax professional, or by making an extension-related payment directly with the IRS.
For Indiana taxpayers, there is also good news. Indiana generally honors the federal extension, and qualifying taxpayers typically have until November 16, 2026 to file their Indiana individual return. As with the federal extension, this is an extension of time to file, not time to pay. Indiana also states that taxpayers should generally pay at least 90% of their expected state tax liability by April 15, 2026 to avoid penalty exposure.
Filing an extension is often the best option when a taxpayer is missing important information such as K-1s, brokerage statements, corrected 1099s, or business records. It is far better to file an accurate return on extension than to rush through a return that may later need correction. A thoughtful approach can reduce errors, lower stress, and help avoid amended returns or unnecessary notices.
An extension can also be helpful for taxpayers who want additional time for planning. In some cases, the extra time allows for better review of deductions, business income, estimated payments, retirement contributions, and state filing requirements. For many taxpayers, that extra breathing room can make a significant difference in both accuracy and peace of mind.
That said, an extension should never be confused with a delay in payment. If a balance is expected, it is important to estimate that amount and submit payment with the extension request. Even when the extension is properly filed, the IRS and state tax agencies may still assess interest and late payment penalties on unpaid tax after the original due date.
If you are not quite ready to file your 2025 return by April 15, 2026, filing an extension may be the right move. It provides more time to gather documents, review details carefully, and file a more complete and accurate return. Just remember that the extension applies to filing the return, not paying the tax.
At R E Donica & Associates, we help clients determine whether an extension makes sense, estimate any balance due, and make sure the proper steps are taken on time. If you need help with your 2025 tax return extension, now is the time to act.
Contact our office today to discuss your extension filing and avoid unnecessary penalties.
