Should You File a Tax Extension? 5 Pros and Cons to Weigh Before April 15

1. Pro: You get more time to file your taxes

If you simply can't file your return by the April 15 deadline, then by all means get a tax extension. You're sick, you can't find your tax records, your computer crashed…whatever the reason, if you can't file, you can't file. Don't bang your head against the wall trying to come up with a way to get your return in before the clock runs out. Take the extension!

More time can also mean a more accurate tax return. For example, you (or your tax preparer) will have more time to determine which tax breaks apply to you and which ones don't. Haste makes waste. So, if you are not sure about how to handle something on your tax return, don't rush it — taking the tax extension will buy you more time to figure it out.

Related: Is the Post Office Open Late on Tax Day?

1. Con: You have more time worrying about taxes

Nobody really likes to think about taxes…so why not just get it over with so you can forget about taxes until next year? Pushing your tax return off until October means you'll just have six more months to worry about it. If you don't need more time, don't take it.

Plus, the task of filing your return won't be any easier in October. You'll still have to collect all your tax records, fill out the forms, do the research, etc. Do you really want that hanging over your head any longer?

2. Pro: You have a longer tax refund window

Let's say you file your tax return today and pay $100 in tax. In August 2026, you discover a mistake on the return that results in a refund to you. In that case, you're out of luck – it's too late to claim the refund. However, if you request a tax extension and wait to file this year's return until October 15, you'll still have time to request a refund when you discover the error in August 2026.

The tax law allows three years from the time a return is filed or two years from the time the tax is paid, whichever is later, to claim a refund related to the return. The later you file, the more time you'll have to file a refund claim later. While this type of scenario is relatively rare, it does happen. And if it happens to you, you'll thank your lucky stars that you requested a tax extension if it means you won't lose out on a refund.

2. Con: Your IRS refund may be delayed this year

If you're expecting a refund this year, think twice about requesting a tax extension. The longer you wait to file your return, the longer you'll wait to get your refund. If you need the money now, then file as soon as possible.

You can also speed up your refund by e-filing your 2025 tax return and opting to have your refund deposited directly into your bank account. Not only can the federal tax agency process electronic returns much faster than it can handle paper filings, but the IRS has effectively eliminated paper checks for most individual returns this year.

So if you don't have a bank account, you might want to open one before you file. If not, your tax refund could be delayed or frozen under the new IRS rules.

For more information on factors that can delay your tax refund, read Kiplinger's report: IRS Income Tax Refund Schedule 2026: When Will Your Refund Arrive?

3. Pro: You might save on tax preparation fees

Tax preparers are busiest right before the tax filing deadline, so expect to pay premium prices if you want your return filed right before the due date. However, things slow down for preparers in the fall. That often translates into lower tax preparation fees, which you can take advantage of if you request a tax extension.

In general terms, prices for tax services can vary widely depending on several factors, including the complexity of your return, where you live, and the preparer's experience. That's why it's important to get a quote before settling on a preparer. You might not get an exact price up front, but at least make sure you understand how the price is determined (e.g., a preparer might have a set fee for each form required, charge you by the hour, or start with a minimum fee and tack on additional costs depending on the complexity of your return).

However, walk away if a preparer bases his or her fee on a percentage of your tax refund — you don't want a preparer claiming questionable tax breaks on your return to inflate the fee.

3. Con: An extension to file is not an extension to pay

If you request a tax extension, you won't have to pay your taxes until October…right? WRONG!! The extension is only for filing your tax return — not for paying any tax you owe. You still have to estimate the amount of tax you owe (if any) and pay that amount by April 15. If you don't, the IRS will charge you interest on the unpaid balance and probably tack on additional penalties for paying late.

If you can't pay the tax you owe, pay what you can now and check out the various IRS payment options for what's left. You can set up a payment plan, make an "offer in compromise," or request a temporary collection delay. Some people even take out loans to pay the taxes they owe, since loan costs are sometimes lower than the IRS interest and penalties you'll owe for not paying on time.

For more information, see Ways to Pay the IRS if You Owe Taxes

4. Pro: Avoid the 5% monthly failure-to-file penalty

The penalty for failing to file your return on time is 5% of any unpaid taxes for each month (or part of a month) that a tax return is late. However, the penalty won't exceed 25% of your unpaid taxes. If your return is over 60 days late, there's also a minimum penalty for late filing — the lesser of $510 (for tax returns required to be filed in 2026) or 100% of the tax owed. So, if you owe taxes this year that you can't pay right now, requesting a tax extension will at least let you avoid (or lessen) late filing fees since the penalty won't start until after October 15.

But you'll still be hit with other penalties if you don't pay any tax due by the April 15 deadline. The failure-to-pay penalty is 0.5% of the unpaid amount for each month, or part of a month, up to a maximum of 25%. The penalty increases to 1% if the tax remains unpaid 10 days after the IRS issues a notice of intent to levy property. If you file your return by its due date and request an installment agreement, the penalty goes down to 0.25% for any month in which an installment agreement is in effect. Interest will be charged on the unpaid amount, too.

4. Con: You don't get more time to do other things

The tax return filing extension is very limited. It buys you more time to file your return, but it doesn't help with other things. As mentioned earlier, you still have to pay any tax owed by the original due date. It also doesn't delay the payment of estimated taxes, give you more time to contribute to an IRA or health savings account, or extend any of the other April 15 due dates. After April 15, married couples can't file amended separate returns if they previously filed a joint return. A filing extension also doesn't give security traders more time to make a mark-to-market election.

If you do request a tax extension, don't be lulled into thinking that you can sit back and relax for six months. You very well may have other tax obligations to fulfill in the meantime (e.g., making estimated tax payments or reporting tips to your employer). You also still might have to file a state tax return — or at least file a separate extension request with your state (check with the state tax agency where you live for specific rules to follow).

5. Pro: More time to fund SEP IRAs and Solo 401(k)s

For self-employed people, getting a filing extension can also provide more time to contribute to a retirement savings account. Normally, contributions to a Solo 401(k) plan or Simplified Employee Pension (SEP) IRA for the previous calendar year have to be made by the original tax return filing deadline (April 15 this year). However, if you get an extension to file your return, you also get an extension to contribute money to these types of accounts.

There's another perk that everyone gets — whether you're self-employed or an employee — by claiming a filing extension. If you exceed the 2025 IRA contribution limits, you get six more months to withdraw the excess funds and, thereby, avoid a stiff penalty. If you don't claim a tax extension, you'll have to take out the extra contributions by April 15.

5. Con: An extension can delay mortgage and loan approvals

If you're applying for a mortgage or other loan, you'll probably need to submit a tax return. You might need one to apply for certain government benefits, too. If delaying your tax return means you'll have to wait to apply for these or other important things, then maybe it's best just to file your return now.

Does a tax extension trigger an audit?

While some may think that filing an extension is an IRS audit red flag, the opposite might be true: Taking more time to ensure your return could potentially save you from an administrative headache down the road.

By extending your filing runway, your return could benefit from improved accuracy, fewer errors, and omissions. Plus, as the IRS points out, amended returns don't affect the selection process for an audit, which is good news for you and the clock.

Read More

• 8 Big Tax Season Changes to Know Before You File
• Ways to File Taxes for Free This Year
• Tax Filing Not Ready? Here's How to Prepare