Contributed by: Henry, FreeTaxUSA Agent, Tax Pro
If you're in the military and serving abroad, the IRS gives you three options to extend your filing deadline. However, you are still expected to pay any taxes owed by the original due date (April 15th) to avoid penalties and interest.
2-month extension
For military members living abroad, the IRS grants an automatic 2-month extension of time to file your tax return without filing Form 4868 if you meet certain requirements. According to IRS Publication 3, you qualify for this extension if either of the following situations applies to you:
- Situation 1. You live outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico.
- Situation 2. You are in military or naval service on an assigned tour of duty outside the United States and Puerto Rico for a period that includes the entire due date of the return. (see pg. 28)
To take advantage of this automatic extension, you must file your tax return by June 15th and attach a statement to the return showing that you met one of the qualifications.
The 2-month extension applies to both spouses filing a joint return if one of the spouses meets the requirements. For those filing separate returns, only the spouse who meets the criteria qualifies for the extension.
Additional 4-month extension
You can extend your due date to October 15th if you file Form 4868 by June 15th and check the box on line 8.
Discretionary 2-month additional extension
To extend your due date to December 15th, send the IRS a letter by October 15th explaining why you need more time to file (mailing instructions are provided in Publication 3, pg. 29). You won’t receive a response from the IRS unless they deny your request.
Requesting an extension for your tax payment
You can ask to defer the payment of taxes that become due before or during your military service. Both of these qualifications must be met for the extension of time to pay:
- You must be performing military service, and
- You must let the IRS know that your ability to pay the income tax has been materially affected by your military service.
You’ll then be allowed up to 180 days after termination or release from military service to pay the tax without being charged interest or penalties.
To request an extension of time to pay:
- If you already have a payment agreement set up with the IRS, send a written request to the IRS office where you have the agreement.
- If you don’t have a payment agreement in place, wait until you receive a notice from the IRS asking for payment. Then you can respond to the IRS office that issued the notice and ask for more time to pay.
A request for an extension of time to pay should include the following information:
- Your name and SSN
- Monthly income and source of income before military service
- Description and amount of expenses incurred because of military service if current monthly income is greater than monthly income before military service
- Current monthly income
- Military rank
- Date you entered military service
- Date you are eligible for discharge
It's also a good idea to enclose a copy of your orders.
The IRS will consider your request and respond by mail with a decision.
Still have questions?
The IRS has provided information about the special tax situations and benefits available to members of the U.S. Armed Forces in Publication 3, Armed Forces’ Tax Guide, and on this dedicated webpage, “Tax Information for Members of the Military
Also see:
https://community.freetaxusa.com/kb/articles/87-how-do-i-file-a-tax-extension
