Arizona Personal Tax Extension | Form 204 Application for Filing Extension

Arizona Personal Tax Extension Guide for 2025

Arizona Extension Policy

The Arizona Department of Revenue offers a generous extension policy for individual taxpayers who are unable to meet the original tax filing deadline of April 15, 2025. Taxpayers who are approved for a federal extension by the IRS automatically receive a six-month extension to file their Arizona state tax return, moving the due date to October 15, 2025. No additional paperwork is needed to request an Arizona extension as long as the federal extension is granted.

Automatic Approval with Federal Extension

To take advantage of Arizona’s automatic extension policy, a taxpayer must be approved for a federal extension using IRS Form 4868. Once this federal extension is confirmed, Arizona considers your extension approved. However, there is still an important step: taxpayers must indicate on their Arizona state return that an extension was filed. This is done by checking Box 82F at the top of page 1 on Arizona Form 140.

Understanding Filing vs. Payment Obligations

While Arizona grants more time to file your return, the deadline to pay any taxes owed remains April 15, 2025. This means that taxpayers who expect to owe Arizona state taxes must pay at least 90% of their current year’s tax liability by the original due date to avoid penalties. Failure to meet this payment threshold can lead to additional charges, even if the return itself is filed on time by October 15.

Making Payments Online

Arizona provides multiple electronic payment options to help taxpayers fulfill their obligations on time. Payments can be made using Visa, MasterCard, Discover, or American Express through the official state payment portal at www.aztaxes.gov. From the homepage, click on 'Make a Payment' and follow the prompts. It’s advisable to save the confirmation number provided after payment, as this serves as proof of timely payment.

ACH Debit Option

For those who prefer to avoid credit card convenience fees, Arizona also offers payment by ACH debit through the same portal—www.aztaxes.gov. This option allows taxpayers to directly debit their checking or savings account at no additional charge. Both payment methods are secure and recommended for their speed and reliability.

Paying by Mail with Form 204

If you prefer to pay by mail, Arizona provides Form 204 – the Application for Filing Extension. While this form is not required if you’ve already filed a federal extension and don’t owe a payment, it can be used to make an extension payment by check or money order. The completed Form 204 and payment should be mailed to:

Arizona Department of Revenue
P.O. Box 29085
Phoenix, AZ 85038-9085

Important Payment Tips

If mailing a payment, be sure to include your Social Security number, the tax year, and the form number on the check or money order. This helps ensure the payment is applied correctly. Also, consider using certified mail or a tracked delivery service to confirm receipt by the Arizona Department of Revenue.

Late Filing and Payment Penalties

If a taxpayer does not file a return by October 15 or fails to pay at least 90% of their tax liability by April 15, penalties may apply. The failure-to-file penalty is 4.5% of the unpaid tax per month, up to a maximum of 25%. The failure-to-pay penalty is 0.5% per month, capped at 10%. These penalties can accumulate quickly, especially if both conditions are unmet.

Real-World Example

Let’s say a taxpayer owes $3,000 and only pays $2,000 by April 15. They file their return on October 1. Because they failed to pay 90% of their liability on time, they may face both a failure-to-pay and a failure-to-file penalty on the unpaid $1,000. Over six months, this could amount to $150 in failure-to-file penalties and $30 in failure-to-pay charges, totaling $180 in avoidable penalties.

Using IRS Form 4868 for Federal and Arizona Extensions

Filing IRS Form 4868 provides a six-month extension to file your federal return. In Arizona, that same extension qualifies you for the state extension, assuming you meet the 90% payment rule. You don’t need to submit Form 204 unless you're making a payment. This process simplifies tax compliance and makes Arizona one of the more user-friendly states in terms of extension processing.

Why File an Extension

There are many reasons Arizona taxpayers may benefit from filing an extension. Some people are waiting on income documentation such as K-1s, 1099s, or corrected W-2s. Others may be experiencing personal disruptions like medical emergencies, moves, or family changes. An extension provides extra time to prepare an accurate and complete return, which helps avoid errors, audits, and the need to file amended returns.

Avoiding Common Mistakes

Common pitfalls include forgetting to check Box 82F on Form 140, underestimating tax due and failing to pay 90% by April 15, or assuming the extension waives payment requirements. Also, some taxpayers assume that filing a federal extension automatically handles all state responsibilities. In Arizona, you must still indicate your extension on the state return.

Best Practices to Stay Compliant

Always pay as much as possible by April 15 to minimize or eliminate penalties. Use electronic payment systems to get immediate confirmation. Retain all receipts and screenshots. Check www.aztaxes.gov regularly for updates, and consult a tax professional if your situation involves multiple income sources, out-of-state income, or complex deductions.

Final Takeaway

Arizona’s tax extension policy is clear and straightforward. If you’ve filed for a federal extension and ensure timely payment of 90% or more of your state liability, your Arizona extension is automatically granted. This removes paperwork headaches while still requiring payment discipline. Take advantage of Arizona’s online tools and file accurately by the October 15, 2025 deadline to stay in good standing.