According to Data USA, Alabama had a population of 5.03 million in 2022, with a median age of 39.3 years and a median household income of $59,609. With such a diverse population of taxpayers, it’s no surprise that many may need extra time to file their state income taxes.
What happens when you need more time to organize your business records or prepare your Alabama state tax return? In this article, you will explore the Alabama tax extension process for 2024 and how it could benefit you.
How Do You File a Tax Extension in Alabama for 2024?
You can request a six-month extension if you're not ready to file your Alabama individual income tax return by the original due date. The Alabama Department of Revenue grants this automatic extension if you’ve already filed for a federal extension.
If you need a state-specific extension, you’ll use Form 40V, the income tax payment voucher. This form is required if you expect to owe tax payments. Remember that the extension form only postpones the deadline to file your return, not the tax payment itself.
Is There an Alabama Tax Extension Form You Need to File?
You might not need to file a separate Alabama extension form if you already have a federal return extension. But, if you owe Alabama income taxes, you must file Form 40V to submit your extension payment. For corporation taxes, businesses need to submit Alabama Form 20C. Partnerships, on the other hand, use Alabama Form 65. All these forms can be submitted either by mail or electronically.
Do You Need to Mail Your Alabama Tax Extension Request?
You can submit your Alabama tax extension electronically or by mail. If you owe taxes and are making a payment, it’s easier to pay online through the Alabama Department of Revenue's e-Services platform.
If you prefer to mail, just ensure your extension payment voucher (Form 40V) is postmarked by April 15th. If you have no tax due and you're relying on your federal extension, you won't need to mail anything for your Alabama extension.
Further Reading: The do's if you want to get a tax extension
Does Filing an Extension Delay the Payment of Alabama State Taxes?
No. Filing an extension to file gives you extra time to submit your Alabama individual income tax return but doesn’t extend the time to make your tax payments. If you owe tax due, the payment must still be made by April 15th.
Use Form 40V to make any necessary income tax payment. Penalties and interest will apply if you fail to pay by the deadline. The extension merely prevents late filing penalties, not late payment fees.
What Happens If You Owe Taxes and File an Alabama Extension?
If you expect to owe taxes, you must submit your payment by April 15th using Form 40V. The extension only gives you more time to file your Alabama individual income tax return, not to pay what you owe.
Late payments accrue interest, and Alabama may impose penalties if your tax exceeds the taxable income from Alabama sources. You can avoid penalties by making an estimated income tax payment when you file for the automatic extension.
Are There Penalties for Filing Alabama Tax Returns Late?
Even with an automatic extension, you could still face penalties if you don’t pay on time. Alabama charges 1% monthly interest on unpaid taxes, plus additional penalties.
If you don’t file your Alabama individual income tax return or submit your payment by April 15th, penalties will apply to any unpaid tax due. Filing the income tax return late without an extension can increase these penalties, so make sure to file by the extended due date.
Further Reading: Know what to do if you owe back IRS taxes
What Are the Requirements for Filing an Alabama Business Tax Extension?
The rules for Alabama business income taxes vary depending on your entity type. Corporations must file Alabama Form 20C if they need extra time, while pass-through entities like partnerships use Alabama Form 65.
These extensions give businesses an additional 6 months to file, but any taxable income earned must still be reported, and payments made, by April 15th. If you're operating an S-corporation or partnership, you must file the extension request and ensure any tax payments are submitted with Form 40V.
Do Alabama Partnerships Need to File a Tax Extension?
Yes, partnerships must file an extension if they need more time to report their Alabama business income. The automatic extension from a federal return generally covers state taxes, but if there's taxable income from Alabama sources, you must submit Alabama Form 65. Any taxes owed must be paid by the original due date to avoid penalties. Use Form 40V to make any required payments by April 15th.
What Do You Need to File an Estate Tax Extension in Alabama?
If you’re managing an estate, you can request an extension to file for Alabama income tax purposes using Form 40V. The six-month extension applies to both resident and nonresident estates, but any estimated taxes must be paid by April 15th to avoid interest charges. Filing an extension form doesn’t postpone the payment; you’ll still need to cover any tax due by the return's original due date.
Further Reading: Explore how to buy time to file your business tax return
How Do You Complete Your Alabama State Income Tax Extension Form?
Filing your Alabama state income tax extension requires accuracy to avoid penalties. If you're required to file an Alabama extension, and you’ve already submitted a federal extension for this tax year, you’re automatically granted an extension for Alabama too.
But, if you owe taxes for earned income from Alabama sources, you must submit Form 40V for either paper or electronic payment. Be sure to select the correct filing status and include your identification details. Missing this can cause delays or penalties.
Which Forms Do You Need to File an Alabama State Income Tax Extension?
Use Form 40V for individual extensions and tax payments to file an Alabama extension. If you're a nonresident, use Form 40NR. Businesses use Form 20C, and partnerships file with Form 65. The annual extension for gross income from within Alabama follows the same calendar year.
If you plan to deduct or claim a tax credit, ensure these are correctly calculated on your forms. For those reporting income reported on the owner’s return, such as pass-through entities, ensure accurate figures.
What Information Do You Need to File an Extension for Alabama Tax Returns?
To complete your extension, gather details such as your gross income, taxable year, and any earned income from Alabama sources. Whether filing as a resident or nonresident, make sure your filing deadline and election for any exemptions or deductions are correct.
Nonresidents should use Form 40NR, and if exempt, ensure to indicate this on the applicable forms. You may also need to provide your identification details and confirm your eligibility for any tax credits.
Key Takeaways
- Submit Form 40V: You must file an Alabama Form 40V to request a state tax extension.
- Automatic Extension: Filers eligible for a federal extension automatically obtain a state extension in Alabama.
- Payment Deadline: Estimated taxes must still be paid by the original deadline, even if you file Form 40.
- Extension Length: Alabama offers a six-month extension to eligible filers to file their return.
- Online Filing: You can obtain the extension by filing online through the Alabama Department of Revenue.
How can Taxfyle help?
Finding an accountant to file taxes is a big decision. Luckily, you don't have to handle the search on your own.
At Taxfyle, we connect you with licensed, experienced CPAs or EAs in the US. We handle the hard part of finding the right tax professional by matching you with a Pro who has the right experience to meet your unique needs and will file your file taxes for you.
