Filing a state tax extension in Mississippi serves to inform the state Department of Revenue that you will be filing a return that year, even though it will be submitted after the initial filing deadline. Filing an extension helps you to remain in compliance with the state tax law. If you simply file your return late, you will be assessed with late filing and payment penalties, as well as compound interest on any outstanding balance you owe. Requesting an extension before the filing deadline will help you to avoid these charges.c

You should only request an extension when there is a valid reason why you cannot file your state return on time. It is very important to note that an approved extension will only apply to the time to submit the state tax forms. Any tax balance you owe will still be due on April 15, the 2011 filing deadline.c  

Before you begin working on your extension request, you need to gather all of the information you need to estimate your state taxes owed. This will be the same paperwork you will use to complete your state return when you're ready to file, so keep it together for easy reference later. You will need the following:

1. The total of your earned income ––If you are employed, you will use the totals reported to you on Form W-2 or Form 1099. If you are self-employed, you will need to add up your gross earnings and then subtract the appropriate business expenses that you are qualified to claim.
2. The total of any unearned income that is also subject to Mississippi state tax––Among other things, this will include unemployment compensation, rental property income, pension payments, etc.
3. The total state income tax that you have already paid during the year––If you are an employee, most likely this was taken out of your regular paychecks. If so, you will see it on your Form W-2 as state taxes withheld. For self-employed individuals, this will be the total of any estimated tax payments you made.
4. A copy of your completed federal income tax return, if you are filing one
   

If you will be filing a federal return, be sure to complete that before you begin working on your Mississippi extension. You will need some of the completed information from your federal return to assess your state tax, especially if you have income from other sources than employment. If you will not be completing a federal return, you may wish to get assistance with these figures.c   

To complete the Mississippi extension request, you will also need the following information:

1. Your Social Security number
2. Your current mailing address
3. The full name and Social Security number of your spouse, if you will be filing a joint tax returnc
   

Now that you have all of the required information, you will need to get a paper copy of Form 80-105 "Mississippi Resident Individual Income Tax Return" and the accompanying instruction booklet. You can download these forms from the Mississippi State Tax Commission website and print them out or you can generally pick up copies at your local library.c  

Before you start the form, stop and read the instruction booklet carefully. The instructions provide clear explanations of exactly what income is taxable in Mississippi and any state tax credits you may qualify to deduct. Begin the form by entering the total of your earned income on line 15. Then go to page 2 of the form and list the sources of any other income you received.c

Add up all of the other income and carry the total to line 16 on page 1 of the Mississippi return. Make any income adjustments necessary to calculate your Mississippi adjusted gross income on line 17. Subtract the total of your standard or itemized deductions and dependent exemptions to figure your state taxable income. Consult the tax table in the instruction booklet to assess the amount of state tax owed for your income bracket. Enter this total as your tax on line 22.c 

Deduct any state credits you can claim and the state income taxes that you have already paid in through withholding or estimated tax payments. What is left over will be either a refund or a balance due.c 

If you are due a refund, you can skip this step. Simply file your return when you are ready and you should still receive the full amount of your refund. But if you have additional tax due, you will need to complete a written extension request and submit it along with your tax payment before April 15.c

The form you will need to send in is Form 80-180 "Mississippi Application for Automatic Extension of Time to File Individual or Fiduciary Income Tax Return". This can also be downloaded from the Mississippi State Tax Commission website or picked up at the public library. Complete the form by entering your full name and Social Security number, as well as your spouse's if applicable. Fill in your complete mailing address and the amount of the payment you are making.c 

In order to avoid late payment penalties and compound interest, you will want to remit the entire outstanding balance before April 15. Write out a check or money order for the total and send it in with the extension request to the address stated on the form. If you are unable to pay the entire balance at once, send in what you can and then contact the Mississippi State Tax Commission about establishing a payment plan.c

If your extension request is approved, you will have until October 15 to submit your completed state return. However, it is still a good idea to begin preparing your return immediately after remitting your payment. This will help you to avoid last minute filing near the extension deadline.