Your Guide to Crypto Tax Extension Rules
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A crypto tax extension can help if you’re unable to file your taxes on time. The IRS provides extensions to US-based taxpayers who require more time to prepare their tax returns for any reason, including complications from crypto. This extension does not delay your tax payment due date.
Depending on your state of residence, you may need to file a separate state tax extension form to delay your filing deadline in your state. Some states grant a six-month extension based on the federal extension.
Why you want to extend your tax return
The IRS permits taxpayers to request an extension if they require more time to prepare their tax returns for any reason. The IRS grants a six-month extension (to October 16 for 2023) so long as you complete the proper form on time. So if you simply need more time to file your tax return and get your paperwork in order, a crypto tax extension is possible.
Note that this extension only grants you more time to file without penalty and does not grant you an extension of time to pay. If you’re unable to pay your taxes due on time, you can apply for a payment plan that may serve to reduce future penalties.
It’s important to note that you may also need to file a separate state extension form. Check your local tax laws for regulations specific to your state or territory, and/or refer to our helpful “list of crypto tax extension rules in your state” further in this article. In short, some states accept IRS extensions while others require an additional form.
What happens if you file crypto taxes late?
It is better to file crypto taxes late than not at all, which risks penalties, interest, and even criminal charges. US-based taxpayers have three years from the date that they filed their return to file an amended return.
Late filing typically results in penalties, and late payments incur penalties and interest. So it’s best to file your crypto taxes on deadline and make timely payments. Tax extensions can help you avoid late filing penalties.
List of crypto tax extension rules in your state
Here is a comprehensive list of crypto tax extension rules in the United States, with helpful links to state tax authority websites and pertinent forms. Regulations are subject to change year over year, so always check with your regional tax authority for current information.
Alabama provides a six-month extension of time to file a return. Payments may be made by the April deadline with the payment voucher Form 40V, checking the box for Automatic Extension Payment. You may also pay electronically over the Internet or by phone.
Arizona offers a six-month extension to file, but it is not automatic. Arizona taxpayers must file Form 204 by April 15 to request an extension. Payments may also be made with Form 204. Arizona taxpayers who electronically make their extension payment and file a federal extension do not need to submit Form 204.
Arkansas provides a six-month extension upon request and honors the federal extension. Arkansas taxpayers should File Form AR1055 by April 15 if they’d like to request only an Arkansas extension or to make a payment to the state.
California provides an automatic six-month extension of time to file. California taxpayers should submit Form 3519 by April 15 to remit an extension payment. Electronic payments can be made online.
Colorado offers a six-month extension to file. At least 90% of Colorado tax must be paid by April 15 to avoid interest and penalties. File Form DR 0158-I with payment by April 15 to remit an extension payment. Colorado taxpayers may also remit payments online.
Connecticut offers a six-month extension upon request. Connecticut taxpayers should file Form CT-1040 EXT by April 15 to request an extension. Taxpayers who don't anticipate owing a balance and who request a federal extension do not need to file the Connecticut extension form.
Delaware offers a five-and-a-half-month extension to file by request. Delaware taxpayers who’d like an extension should file Form PIT-EXT by April 30 by mail or online.
District of Columbia
The District of Columbia offers a six-month extension of time to file. DC taxpayers should complete and mail Form FR-127 or file online by April 15. Payments may be made with Form FR-127.
Georgia offers a six-month extension to file. Georgia taxpayers should complete and mail Form IT-303 to the Georgia Department of Revenue Processing Center by April 15 with a copy of the same extension to your tax return when you file.
Georgia also accepts a copy of the federal extension as a valid request for a state extension. Georgia taxpayers should fill out and mail Form IT-560 in addition to Form IT-303 to make a tax payment.
Hawaii offers an automatic six-month extension of time to file for those who anticipate a refund, have zero tax liability, or have already paid their tax liability for the year. Hawaii taxpayers seeking an extension should mail their payment with Form N-200V by April 20. Hawaii does not accept the federal extension form.
Idaho offers an automatic six-month extension to file if at least 80% of their estimated tax liability or 100% of the previous year's tax liability has been paid. Use Form 51 for payments, or pay online.
Illinois offers an additional six months to file and recognizes the federal extension request. Complete and submit Form IL-505-I to make a payment, or you can pay online.
Indiana offers an extension to Nov. 15 if you file for a federal extension. If you don’t intend to file a federal extension, you may file Indiana Form IT-9. Indiana taxpayers must pay at least 90% of their tax liability by April 15 to avoid a penalty, and the remaining balance due must be paid in full by Nov. 15. Extension payments may be made online.
Iowa offers an automatic six-month extension if at least 90% of a taxpayer’s tax liability is paid by July 31. Iowa doesn't have a specific form for requesting an extension, and the state doesn't recognize federal extensions. Iowa taxpayers typically have until the end of January to file a return. Payment can be made with Form IA-1040V or online.
Kansas recognizes the federal extension request. Kansas taxpayers should simply include a copy of the federal extension to their state return when filing and must pay at least 90% of the current year's state taxes due. Make payments with form Form K-40V, checking the box for extension payments
Kentucky offers a six-month extension to file and recognizes the federal extension request. Kentucky taxpayers can simply attach a copy of the federal extension to their state return. If you’d like an extension specific to your state taxes, complete a Kentucky extension request with Form 740EXT.
Louisiana offers a six-month extension to file and the state accepts extension requests online and via mail. Tax payments may be made electronically.
Maine Revenue Services provides an automatic six-month extension to file a tax return, and additional time can be granted if a request is made in writing. The total extension period can't exceed eight months. Payments can be remitted using Form 1040EXT-ME.
Maryland offers an automatic six-month extension for taxpayers who have no tax due for the year and who file for a federal extension. Taxpayers may also file an extension and make payment by mail, phone, or online. Taxpayers can also make an extension request via phone or online. By phone, you can reach TeleFile at 410-260-7829 or toll-free at 1-800-260-3664.
Massachusetts offers a six-month extension if there is no tax liability due. Massachusetts taxpayers should use Form M-4868 by mail or online for taxes owed or to file for an extension. The state requires at least 80% of the current year's tax liability be paid by the April deadline. Payment can be remitted along with Form M-4868. Taxpayers must file an extension with the state's online systems to make a payment of more than $5,000.
Michigan recognizes the federal extension for taxpayers who submit a copy of their federal Form 4868. Michigan also grants a state-specific, six-month extension to those who file Michigan Form 4 and pay their current year’s state tax liability. Michigan taxpayers do not need to request an extension if you're filing a return to claim a refund.
Minnesota grants taxpayers an automatic six-month extension. Minnesota taxpayers must pay at least 90% of their current year's tax liability to avoid penalties.
Mississippi recognizes the six-month federal extension. Taxpayers should simply attach a copy of their federal extension with the state return. Use Form 80-106 to make a payment by mail, or pay online.
Missouri recognizes the six-month federal extension if no additional amount is due. Use Form MO-60 to make a payment.
Montana offers a six-month extension to file. Taxpayers do not need to submit a form or make an immediate payment.
Nebraska offers an automatic six-month extension to file, honoring the federal extension or via e-file with an authorized tax preparer. Nebraska taxpayers should mail Form 4868N to the Department of Revenue if utilizing third-party software or NebFile to file a return.
When filing, include a copy of your federal extension request or Nebraska Form 4868N to your Nebraska Form 1040N with a note that shows your federal extension confirmation number.
New Hampshire offers a seven-month extension if the full amount of tax has been paid by April 15. New Hampshire taxpayers should file Form DP-59-A if they have not paid income tax in full by the April 15 deadline and want a filing extension. Note that the state does not have a regular income tax but assesses 5% on interest and dividend income.
New Jersey offers a six-month extension to file and recognizes the federal extension if at least 80% of the New Jersey tax liability is paid by April 15. New Jersey taxpayers may also receive an extension and make payments with the state via Form NJ-630.
New Mexico offers a six-month extension to file and recognizes the federal extension. New Mexico taxpayers should simply check the pertinent box when filing Form PIT-1, or file Form RPD-41096.
New York offers a six-month filing extension of time to file. New York taxpayers may request an extension by mail with Form IT-370 or online.
North Carolina offers a six-month extension to file and honors the federal extension. For a state extension only, use Form D-410. For those residing outside the US and Puerto Rico, North Carolina offers a four-month extension. An additional two months can be requested via Form D-410, and payments can be made online.
North Dakota offers a six-month extension to file and recognizes the federal extension. If you only want a stat extension, use Form ND-1EXT.
Ohio recognizes the federal extension, and taxpayers must include their federal extension confirmation number with their Ohio return or attach a copy of the confirmation. Use Form IT-40P to make payments to the state.
Oklahoma provides a six-month extension of time to file via Form 504. The state also recognizes the federal extension if no taxes are due to the state. Oklahoma taxpayers should simply attach a copy of the federal extension to the Oklahoma return when filing. If you owe Oklahoma taxes, complete and mail Form 504 and remit at least 90% of your tax liability by April 15.
Oregon offers a six-month extension to file. Simply file a federal extension and Form 4868 and check the "extension filed" box on the Oregon return when filing. To make a payment, use form OR-40-V.
Pennsylvania offers a six-month extension of time to file. Taxpayers can do this two ways: via the federal extension if state taxes are paid, or through Form REV-276.
Rhode Island offers a six-month extension to file and recognizes a federal extension if no tax payment is due. Rhode Island taxpayers should attach a copy of the federal extension to their state return. They may also file Form RI-4868 and use it to pay state taxes due.
South Carolina offers a six-month extension to file, requested in one of two ways. The state recognizes the federal extension if no tax is due. South Carolina taxpayers should simply check the pertinent box on Form SC1040 if they have filed a federal extension, and attach a copy of the extension to the state return. Taxpayers may also complete Form SC4868 and use it to make payment.
Tennessee does not have an income tax. The Hall income tax on interest, bonds and dividends from stock was repealed in 2021.
Utah offers a six-month extension to file. No form is required, but Utah taxpayers must have paid at least 90% of tax due through withholding, estimated payments or tax credits, or all of the previous years’ tax. Payments can be made using form TC-546.
Vermont offers a six-month extension to file via a copy of the federal Form 4868 or through the state Form IN-151 by April 15. This form can also be used to pay state taxes
Virginia offers an automatic extension of six months to file individual returns. No application form is required. Use Form 760IP to submit payments by May 1. Military personnel are granted an additional two months to file. Those in combat zones benefit from an extension for up to a year.
West Virginia offers a six-month filing extension if a federal extension has been granted and you do not anticipate owing taxes for the year. When filing, West Virginia taxpayers should simply mark the pertinent boxes on their state tax returns. If a federal extension is not required, use Form WV4868 and Form IT-140 for payments.
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How do tax extensions work?
Tax extensions give taxpayers additional time to file their federal income tax returns with the IRS and/or their respective state. For 2023, a federal tax extension request submitted by April 18 moves the filing deadline to October 16.
Tax filing extensions principally serve to help taxpayers avoid late filing penalties. It’s important to note that a filing extension does not extend the due date for taxes owed, so taxpayers should submit a payment for estimated taxes owed when filing an extension or risk penalties and interest. See how do extensions work for more information.
Your Crypto Tax Extension Checklist
Here’s a short, helpful checklist when considering a crypto tax extension with the IRS and/or your state of residence.
Note whether your state requires additional paperwork or respects the
Complete the extension request with the IRS and note your confirmation number.
If necessary, make a request with your state. Refer to the list above for guidance.
Estimate your total tax obligation, including crypto taxes. A tax filing extension does not change the due date of your taxes. If you need help to estimate your crypto taxes, our team at TokenTax can assist. See how to calculate your crypto taxes for more information.
Make estimated payments or request a payment plan with the IRS and/or your state as needed.
Complete your tax filing by the extended deadline to avoid a late filing penalty.
Frequently asked questions
Here are answers to frequently asked questions about the crypto tax extension process and crypto taxes generally, for US-based taxpayers.
When is the tax deadline?
Tax deadlines vary by country. See our helpful country guides for more information. For individual US taxpayers, the tax deadline is April 18th.
How can I avoid crypto tax?
To avoid or limit crypto taxes, US-based taxpayers have a few options. Holding for long-term capital gains typically reduces the tax you pay. You can also consider donating some of your crypto. Some countries have more favorable tax regulations than others, as described in our crypto tax free country guide.
Will I get audited if I don't report crypto?
US-based taxpayers should assume they’ll be audited as a rule. While you may avoid an audit through simple luck, failure to report crypto if you are audited will lead to penalties or worse.
If the IRS identifies that you’re active in crypto and not properly reporting, that could trigger an audit. If you fail to report your crypto activity and are audited, you could be hit with interest, penalties, or even criminal charges.
How long do you hold onto a crypto without having to pay tax?
US-based taxpayers can hold crypto indefinitely without tax consequences, which only occur after a sale for profit or a loss. Countries like the Netherlands tax crypto as part of a wealth tax, so be sure to check with your regional tax authority for current information.
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