Massachusetts Tax Extension: The Complete Guide
Quick Facts:
- Massachusetts taxpayers can file for a 6-month extension.
- You must pay at least 80% of your total tax liability by April 15 to avoid penalties.
- The extension only delays filing, not payment.
Need more time to file your Massachusetts income tax return?
A tax extension can give you that breathing room.
While it allows you to extend the filing deadline, remember that any taxes owed are still due by the original date.
Keep reading to understand how to file a Massachusetts tax extension.
Everything you need to get started
Overview of Massachusetts Tax Extension Requirements
What is a Massachusetts Tax Extension?
An extension provides additional time for a taxpayer to file their return but does not extend the time to pay any taxes owed. Massachusetts residents must still pay at least 80% of their total tax liability by the original deadline to avoid penalties and interest.
Example: If you owe $10,000 in total taxes, you must pay at least $8,000 by April 15th. Any remaining balance can be paid when you file your tax return later.
Important Massachusetts Deadlines
The original deadline for filing your taxes is April 15th, the same as the federal filing deadline. If you file Form M-4868, you are granted an automatic six-month extension, moving the new deadline to October 15th. However, for fiscal year filers, the deadline is the 15th day of the fourth month after the end of the tax year.
Do I Need to File a Separate Extension if I Filed for a Federal Extension?
If you filed a federal extension (IRS Form 4868) and paid at least 80% of your Massachusetts tax liability by April 15, your state extension is automatic — no separate form is needed.
However, if you did not file a federal extension or still need to make a payment to meet the 80% threshold, you must file Form M-4868 with the Massachusetts Department of Revenue.
How to Request a Massachusetts Tax Extension
To file an extension, follow these steps:
- File Form M-4868:
- Go to MassTaxConnect to file online.
- For paper filing, complete Form M-4868 and mail it to the Massachusetts Department of Revenue.
- Calculate Your Payment:
- Ensure you have paid at least 80% of your taxes by the original deadline through withholdings, estimated payments, or direct payment with Form M-4868.
- Example: If your total tax owed is $15,000, you must have paid at least $12,000 to qualify for the extension.
- Make Your Payment:
- For amounts over $5,000, payments must be made electronically through MassTaxConnect.
- If less, you can pay via check or money order, payable to the “Commonwealth of Massachusetts.”
- File the Form:
- Ensure you file Form M-4868 online or by mail by the original tax filing deadline, April 15th.
- Save Your Records:
- Keep a copy of your payment and form submission for your records.
Example of Payment Calculation
If you owe $20,000 in taxes for the year and have already paid $15,000 through withholdings and estimated payments, you must pay an additional $1,000 with
Form M-4868 to meet the 80% threshold.
FAQs on Massachusetts Tax Returns and Extensions
Do I Need to Pay My Massachusetts Income Tax When Filing an Extension?
Yes, you must pay at least 80% of your estimated tax liability by the original due date to avoid penalties. Failure to pay this amount will void your extension and result in penalties and interest on any unpaid taxes.
Who is Eligible to File a Tax Extension in Massachusetts?
Anyone who owes state taxes and needs more time to gather documents or prepare their return can file for an extension. However, paying at least 80% of your tax liability by the original deadline applies to all taxpayers.
What Are the Penalties for Late Filing and Late Payment?
Late filing in Massachusetts incurs a penalty of 1% per month (up to 25%) of the tax due. Interest on late payments is charged at a rate of 3% above the federal short-term rate, compounded daily.
What Is the Additional 4% Surtax for High Incomes?
Starting in 2023, Massachusetts applies a 4% surtax on income over $1,000,000. When filing for an extension, this surtax must be included in the estimated tax payment.
What is Massachusetts PTE Excise?
Certain businesses are structured as pass-through entities, such as S-corporations, partnerships, and LLCs. In these business types, the income "passes through" to the owners or partners, who then report it on their individual income tax returns.
Still have questions? Our experts can walk you through your unique situation — get started now.Massachusetts Tax Revenue Report Overview:
Year-over-Year Revenue Comparison (June 2022 vs. June 2023)
A look at Massachusetts tax collections from June 2022 to June 2023 shows mixed performance across key categories. The bar chart highlights the following trends:
- Income tax collections rose by 2.6%.
- Withholding tax collections saw an impressive 11.3% increase.
- On the downside, corporate and business tax collections fell by 11%.
This mixed performance suggests that while most tax categories experienced growth, corporate taxes saw a notable decline, which may impact overall state revenue trends.
Impact of PTE Excise Adjustment on FY2023 Revenue Collections
The PTE excise adjustment had a significant impact on Massachusetts’ fiscal year 2023 revenue collections. The line chart compares FY2023 revenue before and after this adjustment with FY2022 totals:
- FY2023 collections are 0.3% lower than FY2022 when adjusting for the PTE excise.
- Revenue remains 0.8% below the FY2023 benchmark.
This illustrates the crucial role of the PTE excise in overall tax collections, showing how adjustments influence state revenue reporting and comparisons between fiscal years.
Conclusion
Filing a tax extension in Massachusetts allows you extra time to file your return but not to pay. Make sure you’ve paid at least 80% of your taxes by the original deadline to avoid penalties. Always keep accurate records of your payment and extension submission.
Work with Our Experts!
While state tax extensions can be straightforward, federal tax filings can be complex. Our team of experts is here to guide you through the process.