Alabama State Tax Extension: The Ultimate Guide

Feeling stressed about filing your Alabama state taxes on time?

You're not alone.

Whether you're missing paperwork, need more time to figure out your deductions, or are just overwhelmed with tax season, there's good news—you can get more time!

Alabama gives you a 6-month extension so you can breathe a little and file by October instead of April.

But before you exhale, remember—an extension to file doesn't mean an extension to pay.

To avoid penalties, you must pay at least 90% of your total tax liability by April 15th. This refers to the full amount you’ll report when filing your Alabama return—not just an estimate. If your payment falls short of 90% of what you actually owe, penalties may apply.

Don't worry; we've got you covered.

In this guide, we'll walk you through everything you need to know about filing an Alabama tax extension, from deadlines to step-by-step instructions.

Let's get started!

Alabama State Tax Extension Requirements

What is an Extension?

An extension gives you more time to file, but remember, it doesn't give you more time to pay. In Alabama, individuals who need more time to file can get an automatic 6-month extension as long as 90% of their taxes are paid by the original April 15th deadline.

Alabama Extension Deadlines

• Original deadline: April 15th
• Extended deadline: October 15th (6 months)

Pay at least 90% by April 15th to avoid penalties.

Do I Need to File a Separate Alabama Extension if I File a Federal Extension?

You don't need to file a separate Alabama extension if you've filed a federal extension using IRS Form 4868 and meet Alabama’s payment requirement.

If you're submitting a tax payment by check or money order, use Alabama Form 40V as your payment voucher.

What Happens if I File an Extension?

If you file an extension, your new filing deadline will be October 15th. However, penalties and interest will apply to any unpaid taxes after April 15th, so you must meet the payment obligations.

How to File an Alabama Tax Extension

Step-by-Step Guide to Filing an Alabama Tax Extension

1. Determine Your Tax Liability: To avoid penalties, you must pay at least 90% of your total tax liability—the amount you’ll report on your return—by April 15th.
2. Pay 90% of Your Taxes: If you owe taxes, pay at least 90% by April 15th. Use Form 40V if you're paying by check or money order. To send electronic payments, use the My Alabama Taxes portal.
3. File a Federal Extension (optional): Filing a federal extension using IRS Form 4868 will automatically give you a state extension as long as you meet the payment requirements. No additional Alabama forms are needed.
4. File Form 40V: (if necessary) If you didn't file a federal extension or need to pay, file Form 40V with your payment by April 15th.
5. Keep Documentation: Keep copies of all forms and payment confirmations for your records. You won't receive a confirmation unless your extension is denied.

Example:

Let's say your total tax liability for the year is $10,000. To qualify for an extension, you must pay at least $9,000 by April 15th. If you've already paid $7,000 through withholdings or estimated payments, you must pay an additional $2,000 when filing your extension request.

Alabama Tax Collection Trends: 2021–2023

Alabama Tax Revenue Growth Overview

This chart shows the steady increase in Alabama’s tax collections from 2021 to 2023. The state’s revenue went from $13.97 billion in 2021 to $16.6 billion in 2023, a 19% increase. This growth in tax collections means more fiscal responsibility for Alabama taxpayers, so an extension would be a big help for individuals and businesses in managing their tax obligations.

Individual vs. Corporate Income Tax Refunds 2021–2023

This chart shows Alabama's individual and corporate income tax refunds from 2021 to 2023. Individual refunds increased significantly from $671 million in 2021 to $912 million in 2023. Corporate refunds were smaller in scale but fluctuated, peaking in 2023 at $188 million. The increase in refunds means more taxpayers need extensions to manage refunds and obligations under growing financial pressures.

FAQs

Do I have to pay my Alabama taxes when I file an extension?

Yes. Alabama requires you to pay at least 90% of your total tax liability by April 15th. Filing an extension gives you extra time to file your return, but not more time to pay. Any unpaid balance is subject to penalties and interest.

Who is eligible for an extension in Alabama?

Individual taxpayers are eligible for an extension if they meet the 90% payment requirement by the original deadline.

What are the penalties for late filing and payment in Alabama?

• Late Filing Penalty:
  If you file after the deadline without an approved extension, Alabama charges a one-time penalty of 10% of the taxes owed or $50, whichever is greater.
• Late Payment Penalty:
  If you fail to pay your taxes on time, Alabama charges 1% of the unpaid amount per month or part of a month, up to a maximum of 25%.
• Interest: Interest will also accrue on any unpaid balance from the original due date until paid in full. You can calculate your estimated interest using the My Alabama Taxes portal.

Can I file my extension online?

Yes! You can file your extension and make payments through the My Alabama Taxes portal.

Let Us Help!

Need help with your federal tax extension?

Bottom Line:

An Alabama tax extension gives you time to get your documents in order and file your return correctly.

Remember, an extension to file doesn’t provide more time to pay.

Paying at least 90% by April 15th will help you avoid penalties. However, interest will still accrue on any unpaid balance until it is paid in full.

Ready to take the next step? Get started today and take the stress out of tax season.