What exactly is the process for filing a tax extension in Colorado? Whether you owe taxes or need more time to file your Colorado state tax return, this guide will walk you through everything you need to know. Keep reading to avoid common mistakes and make the process hassle-free!
What Are the Requirements to File a Colorado State Tax Extension?
Do You Need to File a Form for a Colorado State Tax Extension?
Yes, to file a Colorado state tax extension, you must submit Form DR 0158-I for individual income tax or Form DR 0158-C for businesses. This form allows you to extend your filing deadline by six months. But, the extension is only for the paperwork, not for the tax payment.
Colorado’s tax extension applies automatically if you file a federal extension using IRS Form 4868 for individuals or IRS Form 7004 for businesses. Even with an extension, any state tax liability must be paid by the original April 15 deadline.
What is the Deadline for Filing a Colorado Tax Extension in 2024?
In 2024, Colorado income tax returns are due by April 15. If you’re not ready to file your state income tax return by then, you can request a 6-month extension using Form DR 0158-I. Just keep in mind that any tax liability must be paid by April 15 to avoid penalties.
The state provides a secure online solution through Revenue Online for individuals and businesses to submit the application and make an extension payment electronically. Missing the filing deadline could subject you to penalties on any unpaid balance.
Do You Owe Taxes When Filing a Colorado State Tax Extension?
Yes, even if you request a Colorado extension, you’re still required to pay at least 90 % of your state tax liability by April 15. Use the worksheet on Form DR 0158-I to estimate how much you owe. If you can’t pay in full, make an extension payment to reduce the penalty and interest on the remaining balance.
Tax payments can be made electronically through Revenue Online. Failure to pay the taxable balance by the original deadline will result in penalties. If you’re unsure, filing a personal tax extension could give you more time to gather the funds, but interest will still accrue.
Further Reading: Explore the first timer’s guide to filing taxes
How to File a Colorado State Income Tax Extension?
Can You Apply for a Colorado Tax Extension Online?
Yes, you can apply for a Colorado extension online through the Revenue Online portal. This platform provides a secure online solution for individuals and businesses seeking to extend their income tax returns.
You’ll need to log in, select the efile option, and submit Form DR 0158-I for individuals or Form DR 0158-C for businesses. If you owe taxes, you can also make your extension payment electronically. Remember, the form must be submitted, and payment made, by April 15.
Is Filing a Colorado Personal Income Tax Extension Different for Businesses?
Yes, filing a Colorado personal tax extension is slightly different from filing for a business. Individuals use Form DR 0158-I while businesses use Form DR 0158-C. Both forms extend the filing deadline by six months, but your taxable income and tax liability must still be paid by April 15.
If you’ve already submitted a federal extension using IRS Form 4868 or IRS Form 7004, your Colorado extension may be automatically granted. But, you’re still responsible for paying any state tax liability by the deadline to avoid penalties.
Do You Qualify for a Colorado State Tax Filing Extension?
What Situations Allow for a Colorado Income Tax Extension?
Most individuals and businesses qualify for a Colorado state extension simply by submitting the proper forms. Colorado income tax returns are due by April 15, but if you need more time, filing Form DR 0158-I for individuals or Form DR 0158-C for businesses will grant you an extension.
If you’ve already filed a federal extension, the state may automatically grant you extra time. Also, extensions for estate taxes and social security-related filings are available under specific circumstances.
Can You Get an Extension if You Owe Taxes in Colorado?
Yes, you can still get an extension if you owe Colorado tax, but you must make an extension payment by April 15. At least 90% of your state tax liability should be paid to avoid penalties. Use the worksheet on Form DR 0158-I to calculate your taxable income and determine the amount due.
If the full payment isn’t made, you’ll be subject to interest and late payment penalties. Payments can be made through Revenue Online, offering a convenient and secure online solution for managing your tax responsibilities.
Further Reading: Learn how to buy time to file your business tax return
How Does a Colorado State Tax Extension Affect Your Overall Tax Return?
Will a Colorado State Tax Extension Affect My Federal Tax Return?
No, your Colorado filing doesn’t automatically affect your IRS income tax return. You’ll need to file for a federal extension separately using IRS Form 4868, especially if you need more time to pay your 2023 tax liability at the federal level.
Aligning your CO state and IRS e-file extensions is smart. This ensures you manage both tax returns by the extended deadlines without extra hassle. But, keep in mind that while you get more time to file, any taxes due must be paid by April 15 to avoid penalties.
How Can You Avoid Penalties When Filing a Colorado Tax Extension?
To avoid penalties, ensure you pay at least 90% of your Colorado tax liability by April 15. Filing a payment voucher with Form DR 0158-I helps cover the unpaid balance. The penalty fee for late payment is 0.5% of the balance each month, up to 12%.
Even if you get an extension, interest accrues on any unpaid taxes, so you need to make a relatively accurate estimate. Remember, your tax rate and social security tax obligations also depend on what you owe, so don’t delay the fee payments if you want to avoid penalties.
Further Reading: Find out how to file a separate state extension
Key Takeaways
- Automatic Extension: Colorado offers an automatic six-month tax extension for filing.
- No Form Required: You don’t need to file a form if no payment is due.
- Payment Due: Estimated taxes must be paid by April 15 to avoid penalties.
- Form DR 0158: File Form DR 0158 if you owe taxes or need to make a payment.
- Extended Deadline: The extension moves the filing deadline to October 15 automatically.
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