A Nebraska state tax extension is a written request for more time to complete a state tax return. Extensions are generally granted for a maximum of six months. Since most states, including Nebraska, have an initial filing deadline of April 15, 2011, for the 2010 tax year, an approved extension will push the filing deadline back to October 15.c  

It is important that you only request an extension when you absolutely cannot submit your state return on time. This restriction keeps people from filing for frivolous reasons and helps to make sure that tax payments are made in a timely fashion. Even though the filing deadline is extended, the payment deadline is not. This means that any tax you owe to the state of Nebraska will still be due on April 15, 2011.c  

To begin your extension, you will need to assemble the same information you will need to file your Nebraska return. This will include the following: 

1. Your total earned income that is subject to Nebraska taxation - This includes wages, salaries, tips and commissions from employment as reported on your Form W-2 or Form 1099. If you're self-employed, you need to add up your total earnings for the year and subtract your qualified business expenses to reach net income.
2. Your total unearned income that is subject to tax in Nebraska - This includes many income sources, such as unemployment compensation, bank interest or dividends, lottery winnings, and rental property income.
3. Your total state income taxes paid in during the tax year - This will either be through withholding from wages as seen on your Form W-2 or through estimated tax payments you voluntarily made.
4. A copy of your federal income tax return, if you are filing one - Since you will be using some of the information from your IRS Form 1040 to assess your state taxes owed, be sure to complete your federal return first. If you will not be filing a federal return, consult a tax professional to help you calculate these figures. 
   

You will also need a paper copy of the Nebraska Individual Income Tax Return Form 1040N and the form instructions. These forms will be used to calculate your state tax liability in step 2. You can download these forms from the Nebraska Department of Revenue website or obtain them from you local library.

If you need to complete a written Nebraska extension request, you will also need the following: 

1. Your Social Security number
2. Your complete mailing address
3. Your spouse's name and Social Security number, if you will be filing a joint state tax returnc

Begin your state form by transferring the total of your federal adjusted gross income to line 5 of your Form 1040N. After that, stop and read the state tax form instructions. Pay special attention to the sections regarding income adjustments and state tax credits. You will want to be sure to make the proper income adjustments to arrive at your state taxable income. Eligible state tax credits will reduce the amount of your state tax liability.c  

Continue through the form by entering the appropriate standard deduction for your filing status. Then subtract this and any itemized deductions you claimed on your Form 1040. Next, you need to add and subtract any necessary income adjustments to calculate your Nebraska taxable income. Enter this total on line 14.c  

Consult the tax tables located in the tax form instructions to find the amount of your tax liability. Enter this on line 15 as your tax table tax. After you add in any applicable alternative minimum tax, you will have the total amount of tax owed on your state income. Now, subtract any qualified state credits and state taxes paid through withholding or estimated tax payments. What is left over will be either the amount of your refund or the amount of additional taxes you will have to pay in.c 

Now that you have figured your balance due, you can begin making arrangements to remit your payment before April 15. If you do not owe any additional tax and you have already received a federal tax extension, you do not need to complete this step. Your state tax filing deadline will automatically be extended to October 15.c 

If you will be requesting a federal tax extension and you owe additional state taxes, you can simply fill out IRS Form 4868 to request the federal extension and then remit your state tax payment before April 18. You will then need to attach a copy of Form 4868 to your Nebraska state tax return when you do submit it.c 

On the other hand, if you owe additional Nebraska taxes and you are not requesting a federal tax extension, you will need to complete Form 4868N "Nebraska Application for Automatic Extension of Time to File a Nebraska Individual Income Tax Return". This form can also be downloaded from the Nebraska Department of Revenue website or obtained from the public library.c

Complete the form by entering your name and Social Security number, as well as your spouse's if applicable. Complete the address section and enter the amount of your tax payment included with the form. Sign and date the form and make a copy of it for your records. Be sure to write a check or money order for your tax balance and submit it with the form to the address listed by April 18.c

Once you remit payment, you should begin working on your Nebraska return immediately. This will help you to avoid last-minute filing as the extended deadline approaches. For assistance with your Nebraska state form, learn more about how to prepare Nebraska taxes.