Indiana Tax Extension: A Quick Guide for Taxpayers

Filing state taxes can be challenging, especially when waiting on important documents or dealing with financial constraints.

An Indiana tax extension gives you 6 more months to file, but it's critical to remember that the payment deadline is still April 15th.

Below are the key steps to meet the requirements and avoid penalties or interest.

Tax Extension Requirements a Taxpayer Needs to Know

What is a Tax Extension?

A filing extension allows you to delay submitting your state income tax return without incurring penalties.

However, any owed payments must still be made by April 15th, or you will face penalties and interest charges.

If you haven't already requested a federal extension using IRS Form 4868, file Form IT-9 to request an extension.

Indiana Deadlines

• April 15th, 2026: The deadline to file for an extension and pay at least 90% of your taxes.
• November 15, 2025: The final deadline to file your Indiana tax return after receiving an extension.

IRS and Indiana State Tax Extension: What You Need to Know

If you file a federal extension with the IRS (using Form 4868), you will automatically get an extension for Indiana.

However, even if you receive a federal extension, you must file Form IT-9 and make any required payments to ensure you've covered at least 90% of your tax liability.

Missing this requirement can lead to penalties and failure to meet the state's requirements.

How to File an Indiana Tax Extension

Here's the step-by-step process for filing:

1. Get Form IT-9: Download the form from the Indiana Department of Revenue website or use tax software that supports the state tax filing process.

2. Make Your Payment: You must pay at least 90% of your taxes owed by April 15th to avoid penalties and interest. Ensure all calculations are accurate to avoid an error when submitting your payment.

• Online: Use the Indiana Taxpayer Information Management Engine (INTIME) to pay online.
• By Mail: Make checks payable to the Indiana Department of Revenue, and mail the form along with your payment.

3. Payment Plan: If you cannot pay the total amount owed, consider setting up a payment plan with the Indiana Department of Revenue to avoid total failure in making your tax payments.

4. Submit by April 15: To avoid penalties, ensure that your payment and Form IT-9 are submitted by the deadline. Indiana may send a notice if there are issues with your extension or payment submission.

Indiana Tax Penalties Example

If you owe $10,000 in Indiana state taxes, you must pay at least $9,000 (90%) by April 15th to avoid penalties. Let's say you only paid $7,000 by the deadline. In this case, you would incur:

• Late Payment Penalty: A 10% penalty on the unpaid balance ($2,000) equals $200.
• Interest: Indiana charges interest at a rate of 3% above the prime rate on the unpaid balance, adding further costs.

Failure to meet the 90% payment requirement will incur penalties and interest. To avoid a failure to pay on time, make sure all payments are calculated and submitted by the deadline.

Indiana Tax Revenue Breakdown: Fiscal Year 2023

This pie chart provides a detailed breakdown of Indiana's total tax receipts for the 2023 fiscal year, showing the contributions of various tax types. The largest portion of the state's revenue comes from Sales & Use Tax, amounting to $11.00 billion, followed closely by Individual Income Tax at $7.58 billion. Local Option Income Taxes contribute $4.13 billion, while Motor Fuel/Carrier Fees add $1.91 billion. Other significant but smaller sources include Corporate Income Tax at $1.30 billion, Cigarette/Alcohol Taxes at $0.89 billion, and Gaming Taxes at $0.69 billion. This breakdown provides a clear perspective on which taxes are most critical to Indiana’s fiscal health.

Summary

An Indiana tax extension gives you more time to file your tax return but requires paying at least 90% of your owed taxes by April 15 to avoid penalties and interest. Use Form IT-9 or Form 4868 for federal and state extensions, and make sure your payment is made on time. Avoid mistakes by using trusted tax software or consulting an expert.

Need Help? Get Personalized Support! Avoid penalties and minimize any chance of an error by getting help with your state and federal tax extensions. Contact e.file-tax today for assistance and avoid failure to meet important tax deadlines!