The filing deadline for your 2010 Arkansas return is April 18, 2011, but if you receive an approved extension, your deadline will be pushed back to October 18. However, the extension will not apply to any payment you owe. If you have an outstanding tax balance due, you will need to remit that before April 18 to avoid paying late payment penalties and compound interest.c 

You should only request an Arkansas tax extension if there is a legitimate reason why you cannot file your state return on time. The Department of Finance and Administration has the authority to reject your return and it may do so if your reason is not valid. Valid reasons will include circumstances beyond your control. Lack of ability to pay an outstanding balance will not qualify as a legitimate reason.c 

The first step to requesting your Arkansas state tax extension is to gather all of your essential paperwork for the process. This will be essentially the same information you will use to prepare your state return, so keep it in an easily accessible place for later use. You will need the following:

1. The total of your earned income received during the year - Employees will use the amount of state taxable wages as reported on Form W-2 or Form 1099. Self-employed taxpayers will use gross earnings minus the amount of any applicable business expenses.
2. The total of your unearned income received that is subject to taxation - Examples of taxable unearned income will include pension payments, lottery winnings and bank interest.
3. Your state income taxes already paid during the year - If you are employed, your taxes were likely withheld from your wages. If so, this will appear on Form W-2 as state taxes withheld. Self-employed taxpayers will use the total of any estimated taxes paid.
4. A copy of your federal income tax return, if you are filing one
   

Keep your completed IRS Form 1040 nearby as you calculate the state tax liability in step 2. This will help you to keep the numbers consistent on each form. If you'll also be requesting a federal tax extension, be sure to use the same figures when you are ready to file the returns.c  

To complete the extension request, you'll also need the following:

1. Your Social Security number
2. Your complete mailing address
3. The Social Security number of your spouse
4. The date you would like your filing deadline extended to
5. The exact reason you are requesting your extensionc

Your next step is to assess the amount of additional tax, if any, you will owe with your return. To do so, get a paper copy of Form AR-1000 "Arkansas Individual Income Tax Return" and the accompanying tax instruction booklet. You can download these from the Arkansas Department of Finance and Administration website or you can pick them up from your local library during tax season.c   

Begin working through the form by entering the amount of your income on lines 8 through 21, being sure to separate it by the source it came from. Refer to your completed federal return for help, if necessary. On line 22, add all of your income to calculate your total income. Make any adjustments necessary on lines 23 through 25 to arrive at your state adjusted gross income on line 27.c  

Subtract your standard or itemized deductions to figure your net taxable income. Consult the tax table in the instruction booklet to assess the amount of your state taxes owed. Enter this as your tax on line 31. Then subtract any state tax credits you are eligible to claim and the state income taxes you have already paid through withholding or estimated payments. The final result will be either a refund on line 53 or a balance due on line 54.c 

If you will also be requesting a federal tax extension, you can skip this step. Your completed Form 4868 will automatically extend to your state return. But if you will only be filing an Arkansas extension, you'll need to complete a state extension request.c  

The form you need to complete is entitled AR-1055 "Arkansas Individual Income Tax Request for Extension of Time for Filing Income Tax Returns". You can download this form from the Arkansas Department of Finance and Administration website or you can obtain a hard copy at your public library.c  

Complete the request by entering your full name and Social Security number as well as your spouse's if applicable. Write in your current mailing address, select the kind of tax return you will eventually file and enter the date you would like your filing deadline extended to. Remember that the maximum time you can request is six months. You will also have to explain the exact reason you are filing an extension on the lines provided.c 

Make two copies of the form when you finish it. Keep one for your records and you will attach the other to the Arkansas state return when you file it. Send the original request to the address listed on return. If you owe additional state taxes, you will also need to enclose a check or money order for your balance due. Be sure to submit both by April 18.c

If you will be unable to pay your entire balance at once, you can simply send in what you can and contact the Department of Finance and Administration about establishing a payment plan. You will continue to accrue compound interest on any unpaid balance, so try to pay it in full as soon as possible.c Start working on your state return as soon as you can to avoid rushing at the last minute.