In the IRS website, it says you can get an extension to file taxes later but you still have to pay any taxes you owe by today. How are you supposed to know how much you owe if you haven’t filed the taxes?
Posted by SummerN8@reddit | AskAnAmerican | View on Reddit | 116 comments
Then, what would be the point for an extension?
devnullopinions@reddit
You can pay later but you will accrue interest on any debt you owe. You will not get paid interest if the IRS owes you a refund.
Voodoo330@reddit
Estimate what you owe. The IRS doesn't do loans.
OriginalSilentTuba@reddit
Interesting, because they sure did borrow a bunch of money from me interest free last year.
Voodoo330@reddit
You gave it to them interest-free, so they took it. Then they gave you your portion back with no interest. Crappy deal. You should probably re-evaluate your tax situation.
thirdeyefish@reddit
My payroll company gave it to them. I sure as fuck didn't.
Voodoo330@reddit
Look at your pay stub periodically. If something looks off, investigate.
t-poke@reddit
You filled out the W4 form which told your payroll company how to calculate your withholding.
If too much is being withheld and you’re getting large refunds, file a new form with your payroll.
thirdeyefish@reddit
Yes, thank you.
dragon-queen@reddit
They don’t give loans. And you don’t need to overpay your taxes. You can adjust your withholdings at work.
OriginalSilentTuba@reddit
Yeah, I know, it was a joke.
We overpaid because my wife is out of work. Back when she was working, we usually owed. Hopefully that will change soon.
Curmudgy@reddit
Actually, they do, but they call them payment plans. See this IRS page for info.
Willing_Calendar_373@reddit
You need to estimate and pay now. If in doubt, go a little high and get the money back. You can use the tax tables for a quick estimate.
el_taquero_@reddit
There are “safe harbor” rules around what you can pay as estimated taxes to avoid penalties, even if the final amount is different.
https://www.hrblock.com/tax-center/irs/tax-responsibilities/avoiding-underpayment-tax-penalty/?amp
nomadschomad@reddit
No Safeharbor with an extension.
FrankDrebinOnReddit@reddit
Those are for estimated payments throughout the year. If you don't file by the deadline and owe, you don't get to claim safe harbor on interest and penalties you'll accrue after the filing deadline.
el_taquero_@reddit
Thank you for the clarification!
Maronita2025@reddit
That of course is assuming they owe money. If they are expecting a refund then they have three years to claim it without penalty.
nomadschomad@reddit
You estimate… And then pay a little extra. If you overpay, do you get a refund. If you underpay, you owe the rest, interest, and possibly penalties
You don’t get an extension on paying. Definitely not. You get an extension on doing the calculations and filing the paperwork.
The point of an extension is explicitly not to delay a payment. You also can’t wait until April 15 to pay. You have to pay as you go through throughout the year either through employer, withholdings, or quarterly estimated tax payments.
According-Couple2744@reddit
There’s a formula to estimate. You can’t put your money in an investment and then file an extension. Every one would be doing this.
No_Parsnip6024@reddit
If you filed the extension and owed $5000 in tax and paid zero dollars, you'll owe $5025 by the end of the month. Next month you'll owe $5050.13. $50 for 2 months is tolerable. It keeps slightly going up by +$25.xx a month.
It's not the end of the world. Pay what you can, file ASAP. You might get an interest free payment plan anyway.
atomicCape@reddit
You don't get an extension to pay taxes. They really want you paying estimated taxes or regularly withholding all year while you're earning the money, but legally give you until April 15 the next year for flexibility. The extension is only for the paperwork to reconcile the books and determine the balance owed.
You can also owe penalties and interest for dramatically underestimating and getting it wrong.
Jcamp9000@reddit
I had to extend mine for years. I would make my tax payment on April 15 based on the tax I paid the prior year.
Suppafly@reddit
Why?
Jcamp9000@reddit
I just couldn’t get my paperwork together fast enough. I have a corporation so I have to file by March 15. I was also very busy with work and family so I paid on March 15 based on the prior year and then I had until September 15 to file. There’s no penalty to do this. It’s done all the time. I also extended my personal for the same reason and paid based on the prior year.
CJK5Hookers@reddit
A lot of people with more complex tax returns will extend. Also a lot of people who don’t het things like their K1 in time will extend.
The last tax firm I worked at automatically extended everyone who didn’t get us all their documents except for 3/15 items that we handled
Wadsworth_McStumpy@reddit
You're expected to make a guess. It's not usually that hard to figure what you owe. You might be unsure about certain deductions, or whether something counts as income, but if you don't have answers before tax day, it's best to file an extension and include a check for the "worst case" amount you might owe.
If you guess high, then you'll get a refund of the extra amount paid.
If you guess low, then you'll pay a penalty based on the difference, but if you didn't file at all, then your penalty would be based on the whole amount owed.
For most people, it only takes a few minutes to fill out a tax form, so 95% of us have no excuse for late filing anyway.
CommitteeofMountains@reddit
Most people pay "withholding" to the governments over the course of the year and so are owed money back. Additionally, most people are able to 90% fill out their taxes and just get stuck on some small item (my ID number every year), so they can see what their balance is.
tex8222@reddit
Line 4 on the extension form is ”Estimate of Total Taxes’ for a reason.
If you estimate too high, you get a refund.
If you estimate too low you can get a penalty.
So estimate high and pay in more than you might owe. And don’t wait so long next year.
For best results, start sending in money with the Estimated Tax form on a quarterly basis.
No_Parsnip6024@reddit
I owed a few thousand in 2017, and for various reasons couldn't pay. I filed in 2022, and was pretty shocked how low the penalty was. I thought I was screwed, I thought I'd have some insane $10000 fine for not even bothering to file or pay.
I paid about $700 in fines for filing late, plus not paying.
Don't do dumb stuff like that though. File an extension and send a check out for what you can.
somecow@reddit
Exactly. File that extension. They’ll charge interest, but do that shit asap.
Source: Worked for the IRS, the last few days were nothing but extensions, all they do is enter your SSN in, no questions asked.
Last year they were using the cafeteria’s dining room as temporary storage for all the extensions and other stuff because everyone and their dog couldn’t pay on time, cause we’re all broke.
SummerN8@reddit (OP)
Can I message you?
No_Parsnip6024@reddit
Sure.
Steerider@reddit
DM: You're under arrest!
No_Parsnip6024@reddit
💀😂
Donald_J_Duck65@reddit
Estimate
TheDadThatGrills@reddit
You pay your best estimated tax burden. It's basically showing that you're making an effort. The extra time is to file the paperwork, not settle the bill.
Practical-Ordinary-6@reddit
And if you underpay you will owe interest so don't aim low. It's going to be nothing worse than paying taxes on your taxes.
No_Parsnip6024@reddit
It's 0.5% of the total per month, it's not even apr interest tables. Just flat 0.5%.
If you undershoot, it's not a huge deal for regular employees filing regular wage taxes, unless you're absolutely raking in cash.
rratsd65@reddit
The FTP (Failure to Pay) penalty is 0.5% per month or part of a month. Capped at 25% of the remaining tax due.
There's also interest on the unpaid tax. Compounded daily. Currently 6% annual (rate updated quarterly).
If you filed for an extension, ended up filing on Aug 31, and paid a $1000 tax balance due on that date, you'd owe $47.94 in interest and penalties:
Emotional-Grape870@reddit
It’s not 0.5%, it’s 5.0%. Significant difference.
No_Parsnip6024@reddit
It's 5% if you don't file. It's 0.5% if you file your extension. Here's that directly from the IRS.
https://www.irs.gov/taxtopics/tc653#:~:text=The%20failure%2Dto%2Dpay%20penalty%20is%20one%2Dhalf%20of%20one,until%20the%20tax%20is%20paid%20in%20full.
Emotional-Grape870@reddit
I stand corrected. Thank you internet stranger
Present_State_2870@reddit
This sounds backwards, last year I filed on time and got an extension to pay the bill.
Phil_ODendron@reddit
You didn't get an extension to pay. Maybe you set up a payment plan, but you were still charged interest from 4/15.
IndiaEvans@reddit
The bill? You earned the money and the government is stealing it from you.
Emeah824@reddit
Obviously you can’t, but since you were responsible for paying by that date, they will add a late payment penalty.
RectorAequus@reddit
It's a CYA move - if you don't pay by the 15th you're looking at interest.
ReeMayRe@reddit
Why can't you file in time?
just get it filed before midnight so you don't have to go through that! Use an online program now! It will only take an hour or so if you do a standard deduction. It may cost up to $85-150 to file, just do it before midnight and you don't have worry about it.
Euphoric_Library47@reddit
And, if, oh hypothetically I had to leave the country on a family emergency three weeks ago and am now 7000 miles away from my various documents? How am I filling my taxes?
SummerN8@reddit (OP)
I filed my own taxes last year. But this year, it’s a little more complicated, so I don’t want to file them myself. I’ll pay somebody to do it.
In 2024, I kept the same job the entire year and had overpaid in taxes, so I ended up getting a refund.
In 2025, I had I had that same job for like the first half of the year and then a different job for the last three months of the year. One was a government job, and the other one was a gig-work job. I think it’d get confusing using both, a W2 and 1099 to files the taxes.
VinceP312@reddit
So you waited so long for something you weren't even doing anyway.
SummerN8@reddit (OP)
??
ReeMayRe@reddit
don't stress over certain comments, just focus. It will be ok. You have a few hours to get it sorted to file on time. Just read everything carefully if you are doing it online. stay calm.
SummerN8@reddit (OP)
I think I’ll go to one of those places closing at 11 pm today.
However, I’m now wondering. What if I file the taxes today but can’t pay today. Is there a penalty for choosing one of their payment plans instead of paying in full today?
ReeMayRe@reddit
Filing late is a different issue. It is best you file on time. You don't even know if you owe. Just go and file on time. You may have a refund. But if you owe, it is best to pay it in full right away or else there will be interest.
Delaying the file does not mitigate what you owe, it just adds another issue.
NOxcusesNO316@reddit
Totally doable by yourself. I had w2 , unemployment and 2 1099 jobs. I used freetaxusa and got id one myself
ReeMayRe@reddit
Yes, I agree. It may be stressful for first time people but you will see that it's easy once it's done.
throwraW2@reddit
Use FreeTaxUSA it’s super easy. Federal return is free, state is like $15
ReeMayRe@reddit
Yes, that is another good one
ReeMayRe@reddit
Ok, you have 2 options:
H&R Block
Liberty Tax
Jackson Hewitt
They are all open late today. You have time. GO!
If not
At the end, the program calculates and tells you what you owe or your refund. Then you decide how to pay or how to recieved the refund.
If you rather sit with someone, go NOW. These places are open and active. Do it before midnight, Washington D.C. time.
LetterheadClassic306@reddit
yeah this trips people up every year. you basically have to estimate what you owe using your w2s and last year's return as a guide. the extension just gives you more time to file the paperwork not more time to pay. i've used TurboTax before to run a quick estimate without actually filing. the IRS direct pay site lets you send a payment based on your best guess. overpay a little if you're unsure - you'll get refunded later.
eyetracker@reddit
There are penalties for not filing and penalties for not paying. The former is higher, even if you can't spare a single dime file with no check enclosed/efile equivalent.
Extensions defer this for various reasons, but if the sole reason you're extending is because you can't pay, then you're creating extra paperwork for no benefit. It's more for more time to gather your accurate info because you don't have it for various reasons, but there is no penalty specifically for doing this even if you don't need to (besides accounting for any discrepancy in estimate vs. actual return).
Also can file Form 9465 to set up a payment plan, it's a lot more generous than other options like credit cards or even personal loans.
pementomento@reddit
You pay an estimate. If you’re short when you finally file your taxes, you’ll owe the remaining due + interest and penalties. If you overpaid, you’ll get a refund.
I do this every year, our tax return is complicated - sometimes I’m short, sometimes I’m not.
Penalties and interest aren’t really that much if you’re within $2k of what’s owed, IMO.
Rail1971@reddit
Make an estimate. Make it generous. You'll be able to claim a refund of what you overpaid when you file.
thirdeyefish@reddit
You estimate or even guess. If you pay them too much, they refund the difference. If you underpay, you still have to pay interest and penalties on whatever you still owe.
Extensions are more for people who are hospitalized or loose a loved one, or are stuck out of the country and can't access the paperwork they need to file. The take away is that you should still do your taxes and do them as early as possible.
One benefit to early filing is that you get your refund much faster. And if you owe, you at least know how much money you will eventually have to pay. Also, the forms aren't really that complicated for most of us. There are just a lot of 'hey, this one might apply to you' things. If you don't know how to do them, take some time and teach yourself. Every form comes with instructions and MOST forms don't apply to you and don't need to be done.
Ryan1869@reddit
If you file for an extension they still expect you to pay an estimate of what you might owe. If you don't pay, when you do file, the IRS will expect you to pay what you owed with interest
TehWildMan_@reddit
Take your best guess. There's a good chance you would already have enough information to have a ballpark estimate of how many hundreds of dollars you owe, even if you're still waiting on tax forms
general-noob@reddit
You estimate it. Yes, it’s stupid, but this is where we are
Individual_Check_442@reddit
Not really stupid in the sense that you’re not just supposed to estimate on April 15th, you can get penalized for not paying your 2025 taxes during 2025 even if you pay them today. Yes, April 15th has this one month penalty for just being one day late, but the fundamental concept doesn’t change, it’s supposed to be a pay as you go system through withholding and estimated payments; not pay when you file.
No_Associate_4878@reddit
This really means that if you you pay late you will owe interest starting on April 16th. I'm not sure what the annual interest rate is that they charge but few weeks or months shouldn't add substantially to your tax bill if you owe anything.
SummerN8@reddit (OP)
I’m planning to file tomorrow. What’s the most I’ll be charged if I pay drastically less just to get an extension today?
Individual_Check_442@reddit
If you file an extension today, there’s no failure to file penalty, you have failure to pay. So filing your return tomorrow without paying won’t change anything, the failure to pay is going to apply until you pay. Get an extension today even if you pay zero. File before October 15, pay any amount you owe or estimate you owe as soon as you can.
No_Associate_4878@reddit
I was totally wrong. Pay as much as you can tonight because you will have a .5% (1/2 of a %) late payment penalty even for just one day -- it's that much per month or any part of a month.
BoBoBearDev@reddit
I just auto pay per pay check. I request money back instead.
PeorgieT75@reddit
An extension is a one page document you can file online. Even if you don’t pay what you think you owe, you won’t pay the penalty for filing late.
MortimerDongle@reddit
The penalties for filing late are higher than the penalties for paying late.
As others have said, you can estimate how much you might owe.
InvestigatorJaded261@reddit
The way most people do: overpay in advance, and then file to get a refund.
ZogemWho@reddit
We file extensions every year (well, our tax accountant does). You still need to estimate what you may owe and pay that. We’re now in cycle of get refund, apply refund to the next year, repeat.
VinceP312@reddit
That's your problem
IPreferDiamonds@reddit
My account filed for an extension for me. I get an extension a lot of years. I never pay on the 15th. I just wait until she is done and tells me the exact amount I owe, then I pay it online when she files for me. I've never gotten into trouble. I always pay by the 20th.
Durham1988@reddit
Catch 22, huh? If you are in doubt you can pay up and possibly overpay then get the overpayment back after you file. If you u repay you'll get a penalty. Oops. Better to file by 4/15 but if it's impossible- file an extension.
the-quibbler@reddit
Same as all other tax prepayments: you guess based on the data, and get penalized if you're too low.
FlamingBagOfPoop@reddit
It’s an extension to file not to pay. That said, to echo everyone else, you pay an estimated amount. I paid my estimated taxes last night. The extension is being filed.
But if you have all of your paperwork and you don’t have anything odd in your tax situation, working thru a 1040 EZ shouldn’t take long at all.
Eric848448@reddit
If you really have absolutely no idea, why are you dealing with it now?
SummerN8@reddit (OP)
I need answers, not more questions.
ReeMayRe@reddit
Calculate what you made in income last year. It has to be accurate. Even if you don't have a W-2, you have to claim any income/money you made/recieved.
Then create an account with an online tax program and file. The program will ask you all the questions. It's easy. You may have to pay a fee to file, it's a service fee. After you finish the questions, it will tell you what you owe or what your refund is.
Silly-Resist8306@reddit
I'm waiting for some overdue 1099 forms. I've estimated my taxes and the IRS owes me, so I don't have to be in a hurry to get my forms. However, if I had owed them, I'd pay my estimated bill and still be legal while waiting for my 1099s.
SalsaYogurt@reddit
You can pay a bunch of money, more than you think you will owe, and have them apply the overage to 2026 estimated taxes. I do this every year. It works well if you need to pay quarterly tax payments.
dragon-queen@reddit
Why would you do it every year? I understand sometimes things happen and you need an extension, but wouldn’t it be better to pay it on time and pay the correct amount?
SalsaYogurt@reddit
It's really a wash if you need to pay quarterly tax payments.
dragon-queen@reddit
I pay quarterly tax payments. But this setup just creates more work for you and you are giving the government excess money for longer. I don’t see how it benefits you.
Grindar1986@reddit
It sounds like he's in a variable situation like a contractor. Always better to carry a little balance than to find yourself short in a hurry.
FrankDrebinOnReddit@reddit
Someone might have to do it if they get income reportable on a K-1 (shares in S-corps, partnerships, estates, trusts, etc.), since those don't have to be sent until April 15 and the issuers can get a 6 month extension to Sep 15. So until then, you don't know your liability.
dragon-queen@reddit
Ok, this scenario makes sense to me. Thanks.
PriorSecurity9784@reddit
Pretty sure safe harbor is paying 110% of your previous year tax bill.
But I have guessed low, and CPA tells me in October that I need to pay a couple hundred in late fees, so o do, and it’s fine
Suppafly@reddit
So if you usually get a refund, you just don't worry about it?
PriorSecurity9784@reddit
Total tax owed, not the difference due or owed when you file.
So, if previous year you had $10,000 withheld, and your actual tax due was $8000, you would get a $2000 refund.
So if this year, you had at least $8000 withheld (or $8800 for higher income) you should be ok.
If you only had $7000 withheld for 2025 (shown on your W2) then you should make an extra $1000 (or $1800) payment to make your total $8000.
But if everything is the same and you think you’ll be entitled to a refund again, you don’t need to overpay.
dragon-queen@reddit
No, it’s 100% unless you are categorized as high income.
LeafyWolf@reddit
Having accidentally low-balled my taxes before, I had to pay a percentage of the money I was off by. I was off like 300 bucks, and I think the penalty was 24 bucks or something like that.
PriorSecurity9784@reddit
I didn’t know, but google says you’re right:
To avoid IRS underpayment penalties, you can use the safe harbor rule by paying the smaller of 90% of your current year’s tax liability or 100% of your prior year’s tax (110% if AGI exceeds $150,000).
Plane-Investment-791@reddit
The point is to give you more time to get paperwork done. You have to pay what you think you owe and then you can get more time to get your paperwork in order. They are hard on the fees and fines and penalties.
FreeStateOfPortland@reddit
Estimate them.
peoriagrace@reddit
If you can't pay right now, they will just charge you fees and penalties.
FivebyFive@reddit
Yep. It's really annoying.
Last year I filed late and I just risked it. Ended up paying a fine but it was better than having to... Do my taxes in order to estimate what I owed... in order to file my taxes late.
TheDuckFarm@reddit
You can pay late, you just pay some penalties and fees.
Alternatively, to avoid those, pay what you think you need to pay plus a little more and get a refund later when you file. This way you pay no fees or penalties.
Salty_Permit4437@reddit
Many people either get refunds or pay the penalties and interest. Some will submit a rough estimate payment then either get a refund or pay the difference.
MuchDevelopment7084@reddit
It's called an estimate. Which you base on the prior years filing. The extra time is so you can gather all the missing documents, etc. That are needed to file the correct and accurate information.
mckenzie_keith@reddit
In practice here is how it works.
You can file an extension without knowing how much you owe. If, when you submit your actual return, you owe money, additional penalties will also have to be paid.
If, when you submit your actual return, you are entitled to a refund, you will not have any penalties applied and you will get your refund.
Also, you may, if you wish, make a payment when you file your extension. You can just take a guess how much you might owe based on results from previous years. If the payment is more than you owe, then you won't have to pay any penalties.
Js987@reddit
Estimated. The extension isn’t to get the funds in order, it’s because your tax situation is complicated by some factor. For example, errors on needed documents they need sorted out before they can file. I was just talking to a person a few days ago who had an issue caused by how an insurer they bill changed how they break out payments and needed an extension while their accountant sorts it out.
ChapterOk4000@reddit
It's an extension of the time to file, not of what you owe. If the payment is late, it can be charged interest and penalties. The government doesn't care that you need more time.
shelwood46@reddit
You estimate, hoping to err on the overpaying side. If you have already paid as much as you owe or more, that's fine, and you will be refunded any overpayment once you file. If you owe them money and file later, they will add interest to the amount you owe from 4/15 until you finally file, and this is now how much you owe (you may also be fined. They do not want people scamming).
Salty_Dog2917@reddit
I pay estimated income tax over the year, then my accountant files for an extension. Usually I pay estimated off last years taxes, so sometimes I owe more and sometimes I might get a little back.
Dalionking225@reddit
that just means by the time you decide to file and pay it, they will tack on interest and possible fees for it now being late
porkchopespresso@reddit
It tells you to estimate it
ZonaWildcats23@reddit
Tax estimates. Pay what you reconcile for 2025 and estimate on Q1 2026 tax along with the extension paperwork. It’s usually for business owners or people with income in states that allow pass-through entity taxation. It’s pretty complicated so I’d consult a tax professional.
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