Alabama State Tax Extension: The Ultimate Guide
Your Takeaways:
- Alabama gives you an automatic 6 month extension to file your state tax return if you can't make the April 15th deadline.
- To avoid penalties, you must pay 90% of your tax liability by the original deadline.
- Filing an extension does not extend the payment deadline; taxes owed must still be paid by April 15th.
- Electronic payments are required for amounts over $25,000.
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 estimated taxes by April 15th. Not sure where to start?
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 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 file a federal extension (Form 40V). But if you owe state taxes and haven't made full payment by April 15th, you must file Form 40V. Alabama will accept this as a request for an extension.
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
- Determine Your Tax Liability: Estimate your total tax liability for the year. Alabama requires you to pay 90% of this amount by April 15 to avoid penalties.
- 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.
- 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.
- 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.
- 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
Tax Collection Trends 2021–2023
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 90% of your taxes by April 15th. An extension only gives you extra time to file your return, not to pay your taxes.
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?
- Late Filing Penalty: 10% of the amount due per month, up to 25%.
- Late Payment Penalty: 1% of unpaid taxes per month.
Can I file my extension online?
Yes! You can file your extension and make payments through the My Alabama Taxes portal.
Let Us Help!
While state extensions in Alabama are simple, federal extensions can be more complicated. If you’re overwhelmed by deadlines or unsure of your tax liability, our team of tax pros at IRS Extension is here to help. Get personalized service to ensure your federal and state taxes are handled. Click here to get started!
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 waste more time to pay.
Pay at least 90% by April 15th to avoid penalties and interest.
If you need help, contact us today!
Other Categories
See what some of the hundreds of thousands of satisifed customers have to say about our services:
VERY FAST
I got approved within a couple days for my tax extension filing through these guys and they responded to my email the same day. Great customer service and fast results. Give them a shot.
Great Service!!
This is the second year that I used this service. Each time, the process was quick, easy and efficient. I will definitely be using this service in the future and will recommend it to friends and family.
Fantastic Site!!
The process was so easy. I processed this extension in a matter of minutes! For you last minute filers out there, come here. It'll help you end your long day in peace!