Income Tax Extensions: What About State Taxes? |
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If you're on this website, you probably already know that you can file for a business or personal tax extension online in just minutes, and the IRS will automatically grant you a six-month extension. But what about state tax extensions? Do they even exist? They sure do, but the rules vary by state. Some states, like Massachusetts and California, subject residents to high taxes and a complex tax code–so a state tax extension is a good idea indeed. At the other extreme, states including Alaska and Nevada don't levy personal income taxes at all. However, you may still have to pay business taxes in some of those states, so you still have some investigating to do. State Tax Extensions: How Do They Work? State tax extension laws come in many shapes and sizes. Alabama and Arizona, for example, will automatically grant you a state income tax extension when you file IRS Forms 4868 or 7004 (federal tax extensions). All you have to do is send them a copy. California and Colorado don't require you to file for an extension at all if you are owed a refund (you only have to do it if you owe taxes). Connecticut, Washington DC and Delaware have state-specific forms that must be filed, whether you owe or not. Confused yet? You're not the only one. How do you figure out the rules for your state (or, heaven forbid, if you owe taxes in more than one state)? TaxExtension's partner, FileLater.com, offers comprehensive information on the various state tax extension laws. The site can't file the forms for you (they handle only federal income tax extensions), but you'll find the answers you need to take care of your state tax extension. |