North Carolina Tax Extension: Your Guide

A tax extension can give you the time to file without fear of penalties. 

Remember, the filing deadline may be extended, but taxes owed must be paid by the original due date to avoid penalties and interest.

Knowing who qualifies and how to request an extension will save you time and money. 

So, how do you get a tax extension in North Carolina? 

Continue reading.

Overview of North Carolina Tax Extension Requirements

What is a Tax Extension?

A tax extension gives you more time to file your income tax return without penalties. However, it does not extend the time to pay any taxes owed. Any taxes owed must be paid by the original due date, typically April 15, to avoid interest and penalties.

In North Carolina, you don't need to file a separate state extension if you've already filed for a federal extension. North Carolina automatically grants a state extension if you certify it on your state return by filling in the "federal extension" circle on Page 1 of your North Carolina tax return. If you need to make a payment, you must use Form D-410.

Key Facts:

Important North Carolina Extension Deadlines and What They Include

When is the Deadline to File a Tax Extension for North Carolina?

Typically, April 15th. The deadline to file a tax extension in North Carolina is the same as the federal tax extension deadline. However, it can vary if April 15 falls on a weekend or a holiday, in which case the deadline will be the next business day.

Do I Need to File a Separate Tax Extension for North Carolina If I Already Filed a Federal Tax Extension?

No, if you have completed IRS Form 4868, you don’t need to file an extension in North Carolina.  You must certify on your North Carolina return D-400, “I certify that I was granted a Federal extension” (Fill in the circle “Yes”). If you need to make a payment, you must complete the D-410.   

Here is North Carolina's Payment Calculator to help you estimate your taxes. 

If I File a Tax Extension For North Carolina, When Is My New Deadline?

If you file a tax extension, your new deadline to submit your state tax return will be October 15, the same as the federal extension deadline.

How to Request a Tax Extension in North Carolina

North Carolina Individual Income Tax Extension Video

How Do I File a North Carolina Tax Extension?

If you haven’t filed for a federal tax extension or need help completing FORM-4868, we have resources that can help. Click HERE to get started.

If you already have a federal tax extension, no additional extension will be needed for North Carolina.  However, if you need to submit a payment, you must complete Form D-410.  To file a North Carolina tax extension, you can use the online service provided by the North Carolina Department of Revenue or submit Form D-410. You can access the online service through this link or download and mail the form from here.

FAQs

Do I Need to Pay My State Taxes When I File a Tax Extension for North Carolina?

Yes, any state taxes owed must be paid by the original due date, even if you file a tax extension. Failure to pay the taxes by the due date will result in interest and penalties.

Who is Eligible For a Tax Extension for North Carolina?

Any taxpayer who needs additional time to file their state tax return can request an extension. However, the extension only applies to the filing deadline, not the payment deadline.

What Are the Penalties for Filing My Taxes Late in North Carolina?

If you do not file your tax return by the extended deadline, you may incur penalties. The penalty is generally 5% of the net tax due for each month or part of a month the return is late, up to a maximum of 25%. If filed under an extension, the penalty applies from the extended filing date.

Example: 

If you owe $2,000 in taxes and file your return two months late, you could be charged a $200 penalty (5% of $2,000 for each month, totaling $200).

What Are the Penalties for Paying My Taxes Late in North Carolina?

Late payment of taxes will result in interest charges and penalties. The late payment penalty is 5% of the tax not paid by the original due date, up to a maximum of 10%. Interest accrues on unpaid taxes from the original due date until paid, with rates set semi-annually by the Secretary of Revenue.

Example: 

If you owe $2,000 in taxes and fail to pay by the original due date, you could be charged a $100 penalty (5% of $2,000) plus interest. If you pay after four months, you would owe additional interest based on the rate set by the Secretary of Revenue.

How Do I Know Whether I Should File a Tax Extension for North Carolina?

File a tax extension if you need more time to get your taxes right. Avoid late filing penalties. But if you owe taxes, you must pay by the original due date to avoid interest and penalties.

Is There Anything Else I Need to Know About Filing a Tax Extension for North Carolina?

Keep a copy of your extension request and payment confirmation for your records. File your extended taxes by the new due date to avoid penalties. For more information, visit the North Carolina Department of Revenue's FAQs.

North Carolina Cash and Taxes Fund Balances

The graph indicates the tax compliance rates over five fiscal years (2018-2019 to 2022-2023) for three categories: statewide, taxpayers with $100,000,000 and above, and taxpayers with $99,999,999 and below.

Key insights include:

• High Compliance Among Large Taxpayers:

• • Taxpayers with $100,000,000 and above have a consistently high compliance rate, always above 99%. This suggests that larger taxpayers are generally more compliant with their tax obligations.

• Statewide Compliance:

• • The statewide compliance rate hovers between 98% and 99%, indicating that, on average, most taxpayers across the state are meeting their tax obligations.

• Lower Compliance Among Smaller Taxpayers:

• • Taxpayers with $99,999,999 and below have the lowest compliance rates in each fiscal year, usually slightly below 99%. This group shows more variability and a slightly lower level of compliance compared to larger taxpayers and the statewide average.

Overall, the graph suggests that larger taxpayers are more reliable in meeting tax obligations, while there is a slight drop in compliance among smaller taxpayers, which may require targeted measures to improve their compliance rates.

Conclusion

A tax extension gives you the time you need to get your taxes right. Knowing the North Carolina requirements and deadlines will save you penalties and interest. Remember an extension gives you more time to file but not more time to pay. Use the resources and file and pay on time to be tax compliant.