Anyone unable to complete their North Carolina state tax return by the April 15, 2011 filing deadline should attempt to receive an extension. However, you should only apply for an extension if you have a valid reason. Examples might include having difficulty obtaining your tax documents or receipts for business expenses.c  

Even though you may not be able to file your state return by the deadline, filing an extension gives the Department of Revenue notice that you will be submitting a tax return this year. This keeps you in compliance with the tax laws of the state, prevents you from certain penalties and, if approved, extends your deadline to October 15.c  

To file your North Carolina tax extension, you will have to complete Form D-410 "Application for Extension for Filing Individual Income Tax Return". If you have access to the Internet, you are strongly encouraged to file this form using the North Carolina Department of Revenue website to reduce processing time.

If you do not have Internet access, you can usually pick up a copy of the form at your local public library. You may also get a form by calling the Department of Revenue and requesting a paper form, which you can then complete by hand and mail in.c  

To complete your extension form, you will need the following information:

1. Your Social Security number
2. Your spouse's Social Security number if you are filing a joint tax return
3. Your full name and spouse's name if applicable
4. Your complete mailing address
5. Your total taxable income for the year
6. A copy of your federal income tax return, if you are filing one
7. Your tax liability for the past calendar year––You will have to calculate this yourself (see Step 2).
8. The amount of North Carolina state income taxes that you have already paid in or had withheld from your pay––Generally, this can be found on your Form W-2 or Form 1099.
9. The amount of your overpayment or balance duec   

Since you will be calculating your tax liability, you should have a paper copy of the North Carolina state tax return, Form D-400 and the accompanying instructions close by. You can use this form to assess your actual taxes owed for the year. This form can also be downloaded from the website or obtained from the library.c  

Now that you have all of the tax information and paperwork you need, you can begin calculating your state tax liability. The taxes that you are liable for are based on the amount of income you earned that is taxable in North Carolina and are affected by the amount of taxes that you have already paid in or had withheld from your wages. The instructions included with Form D-400 will explain exactly what income is taxed in the state.c 

Begin working through the state tax form by entering your federal adjusted gross income from your federal tax return. After that, continue working through the return, adding taxable income and subtracting any applicable credits. The worksheets included with the instructions will help you know what credits you qualify to claim.c 

Next, consult the tax tables in the instructions. Once you locate your taxable income bracket, you will enter the amount in your column as your taxes owed. Enter the total amount of your state taxes withheld or paid in as your tax payments. Subtract this from your taxes owed to figure your tax liability. If you paid in more than you owe, you will receive a refund. If you paid in less than you owe, you will have a balance due.c  

Once you calculate your tax liability for the year, you are ready to complete Form D-410. If you are completing the online form, you can simply type the information in and submit electronically. If you are completing the form by hand, be sure to write clearly and legibly to avoid any processing delays.c  

Begin by entering your and your spouse's Social Security number. Then enter your and your spouse's full name and mailing address. Near the bottom of the form, enter the taxes owed as the tax liability for the year. Then enter the amount of your tax payments already made–this includes your state withholding. Finally, enter your amount due. If you have an overpayment and will receive a refund, enter zero as the amount due.c 

To submit the form electronically, you will then click "Create Form" to make a printable page. Be sure that you print this out for your records. To mail the form in, send it to the address that is included with the paper instructions.c  

If you have a payment due, you should remember that filing an extension does not extend the payment deadline, so your tax payment will still be due by April 15, 2011. To avoid late penalties and interest, remit your payment along with this form. By mail, you can include a check or money order for the balance. If you are filing electronically, you can submit your payment via a bank draft for no charge. To pay with a debit or credit card, you will have to pay a graduated fee.c

If your extension is approved, you will have until October 15, 2011 to file your state tax return. But you should begin working on your return immediately to avoid any potential delays. This is especially true if you are due a refund.c