Count Down to Tax Deadline File Extension or Not?

As we count down to the tax deadline on April 15th for most U.S. taxpayers, you might be

feeling the pressure. Whether you’re still waiting on paperwork, dealing with a personal

emergency, or just overwhelmed, the good news is that you can file for an extension.

However, the first question is should you?

Well let us help with a break down on what filing an extension means, and the pros and cons so you can make an informed decision before the deadline hits.

What Is a Tax Extension?

Filing a tax extension gives you an extra six months to submit your tax return.

In 2025, that means your new deadline would be October 15, 2025.

You can file for an extension easily by submitting IRS Form 4868 electronically or by mail

before the original due date.

⚠️ Important: A tax extension only gives you more time to file—not to pay any taxes owed. If you don’t pay at least 90% of your estimated tax bill by April 15, you could still face penalties and interest.

Pros of Filing an Extension

✅ More Time to Get Organized

Rushing to prepare and file your taxes can lead to mistakes. An extension gives you breathing room to gather all your documents, double-check deductions, and avoid errors that could trigger an audit.

✅ Avoiding Late Filing Penalties

Even if you can’t pay your full tax bill, filing for an extension helps you avoid the late filing

penalty, which can be much more than the late payment penalty.

✅ More Time for Strategic Tax Planning

If you're dealing with complex investments, business income, or big life changes, that extra time can help you work with a tax professional to make smarter decisions.

✅ Self-Employed Tax Benefits

Some self-employed taxpayers may use the extension time to fund retirement accounts (like SEP IRAs), which can still count toward the previous tax year.

Cons of Filing an Extension

❌ Interest and Penalties May Still Apply

If you owe taxes and don’t pay at least 90% by the April deadline, the IRS will charge you

interest and possibly a penalty, even if you’ve filed for an extension.

❌ Delays Your Refund

If you're owed money from the IRS, filing later means waiting longer to get your refund.

No one likes that.

Final Thoughts

While extensions are helpful, they can also lead to kicking the can down the road. Don’t forget: an extension doesn’t mean forgiveness. You’ll still be responsible for any missteps in your return, even with the extension. And come October, you’ll need to be ready as no more delays are allowed.

Filing an extension can be a lifesaver if you need more time, but it’s not a free pass. If you owe taxes, pay as much as you can by the April deadline, even if you’re not ready to file the full return. Whether you file on time or get an extension, being informed and prepared is the best way to avoid stress (and fees) during tax season.