Tax Day is Monday: How do I file a tax extension in 2021?

The May 17 tax deadline is just around the corner. If you haven't filed yet and are feeling pressed for time, don’t panic. You may want to consider an extension.

The IRS doesn't care what your reason is. Maybe you lost tax documents, experienced a family emergency or just procrastinated. Regardless of the issue, you can still get an extension to file until Oct. 15. This could give you more time to review your return to ensure that you're taking advantage of all the tax benefits available to you.

Although it may sound tempting, there are a few things to keep in mind. Filing an extension when you owe taxes only gives you more time to file, not more time to pay. That means your payment is still due at the tax filing deadline.

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So if you don't pay your estimated tax due by May 17, the IRS will charge you interest on the unpaid balance.

It's important to file on time or get an extension so you don't get hit with a late filing and/or a late payment fee. Failure-to-file penalties can add up to 25% of the tax due, according to TurboTax. If you file an extension but miss the extended deadline, you will be subject to this penalty.

Here's how to get the extra time you need:

How to file an extension

To file an extension, submit IRS Form 4868 electronically by the filing deadline on May 17. You can also do it for free using any of the Free File software offered by the major tax preparation companies. These often help you estimate your tax due so you can make a payment.

Another option is to print out the form and send it to the IRS address for your state by the deadline.

Even if you file an extension, you still need to pay what you owe by May 17. If you underestimate that amount, you could end up paying interest on what you don’t pay.

Can I file a state extension?

The rules vary from state to state and each one has its own tax-filing extension rules. Check your state's tax agency website for more information.

What if I can’t pay my taxes?

You may qualify for an online payment plan or an installment agreement that allows you to pay off an outstanding balance over time, according to the IRS. If you already have a payment plan, you may still qualify to use the plan option to revise your existing agreement.

When will I get my tax refund?

If you expect a refund, you won't receive it until after you file your return and the IRS processes it.

What to do if you live abroad

You automatically get two extra months until June 15 to file your federal tax returns without submitting an IRS extension request if you’re a U.S. citizen or resident alien and you live and work outside the U.S. and Puerto Rico.

You don't need to file Form 4868 to get this extension, but include a statement that explains why you qualified for the later deadline.

But keep this in mind: Even though you may get an extension without incurring a penalty, you will have to pay interest on any tax not paid by May 17.

If you can't file by the automatic two-month extension date, you can file a Form 4868 to request an additional extension to Oct. 15. You have until June 15 to file this form.

This article originally appeared on USA TODAY: Tax deadline 2021: How to file an extension