If you file your Georgia tax forms after the filing deadline, you will be assessed a late filing penalty and compound interest on any outstanding balance you owe. But if you receive a state tax extension, you will be spared these additional charges. In Georgia, you are required to disclose the reason you are requesting the extension. If the state does not deem your reason to be valid, your request may be rejected. Be sure to only request an extension for circumstances beyond your control.c  

The state tax return filing deadline for the 2010 calendar year is April 18, 2011. A state extension will give you an additional six months to file the forms, pushing your filing deadline back to October 18, 2011. The extension does not apply to the date to remit any payment due. If you owe additional tax with your return, you will still have to make your payment before April 18, 2011, to avoid additional interest charges.c

Before you begin, take a few minutes to assemble all of the tax-related paperwork you will use to complete the process. You will be using the same information needed to prepare the state return, so keep these documents in an accessible place. You will need the following:

1. The total earned income you received during the year––If you are an employee, this will appear on your Form W-2 or Form 1099 as total taxable wages. If you are self-employed, add up your gross earnings and then deduct any qualified business expenses you can claim.
2. Your unearned income that is subject to Georgia state tax––This includes unemployment compensation, lottery winnings, bank interest, etc. See the tax form instructions for a list of all taxable income sources.
3. The state income taxes you have already paid––Employees will generally see this on Form W-2 as state taxes withheld. Self-employed taxpayers will need to use the total of any estimated state tax payments they have made.
4. A copy of your completed federal income tax return, if you will be filing onec  
   

The Georgia tax return will use your federal adjusted gross income as the basis for assessing your state tax liability, so if you will be filing a federal return, complete that before you begin working on your state extension. If you will not be filing a federal form, you may want to consult a tax professional for assistance figuring your adjusted gross income.c 

To complete the extension request, you will need the following:

1. Your Social Security number
2. Your current mailing address
3. The exact reason you are requesting an extensionc    

The next step is to calculate the amount of your state tax liability and see if you will owe any additional taxes with your return. To do this, get a paper copy of Form 500 "Georgia Individual Income Tax Return" and the form instruction booklet. These can be downloaded from the Georgia Department of Revenue website or obtained from your local library during tax season.c    

Read the tax form instruction booklet carefully before you begin working through the return. The booklet will explain any necessary income adjustments as well as state tax credits that you may be eligible to claim. If any part of the form seems confusing, consult the instructions for help.c 

Begin by entering your total number of dependents as claimed on your federal return on line 7b. Then carry your federal adjusted gross income from IRS Form 1040 onto line 8 of the form. Turn to Schedule 1 in the tax booklet and complete that worksheet to account for required income adjustments. Subtract or add these to arrive at your state adjusted gross income on line 10.c

Deduct your standard or itemized deductions and exemptions to calculate your state taxable income on line 15. Check the tax table located in the instruction booklet to assess the amount of state taxes due on your income and enter this on line 16. Subtract any eligible state tax credits you can claim as well as your state income taxes paid through withholding or estimated tax payments. What remains will be either a balance due on line 36 or a refund on line 37.c 

All Georgia taxpayers who need an extension will have to complete a written request, even if no tax is due. The form you have to complete is entitled Form IT-303 "Georgia Application for Extension of Time for Filing State Income Tax Returns." The request is available for download on the state revenue website or for pickup from the public library during tax season.c 

Enter your full name and address then select the type of tax return you will eventually file. Write in the date you would like your filing deadline extended to. Remember that the maximum you can request is six months. State the exact reason you are requesting an extension on the lines provided. Sign and date the request and then make two copies. You will need one for your personal records and one to attach to the state return when you file it. Send it to the address on the form by April 18, 2011.c

If you have additional taxes due as calculated in step 2, you need to submit a payment to receive your extension. This will require you to complete Form IT-560 "Extension Payment Voucher." Write your full name and Social Security number as well as your spouse's, if applicable. Complete the address section and write in the amount of your payment. Send the completed voucher, along with a check or money order for your balance, to the address listed on the form by April 18, 2011.c Once you file the extension request, you should to start preparing your state return as soon as possible.