A North Dakota state tax extension is a provision available to those who will be unable to file their state tax return before the April 18, 2011 deadline.http://www.nd.gov/tax/indincome/pubs/newsletter/nl_01-11.pdf If your extension request is approved, you will have an additional six months to file your return, giving you an extended filing deadline of October 17. An extension keeps you in compliance with the tax law, so that you can avoid some of the late filing penalties you would incur if you simply submitted your return late.http://www.nd.gov/tax/indincome/forms/2010/nd1instruct.pdf

The North Dakota Office of State Tax Commission has stricter guidelines than some other states when it comes to getting an approved extension. As a rule, you should only apply for a tax extension when you have a legitimate reason. But this is especially true when filing in North Dakota, because you will have to detail exactly what your reason is on your extension form. An extension will only be granted if the ability to file the return on time is beyond your control.http://www.nd.gov/tax/genforms/form101-enabled.pdf 

You will need several pieces of information to file a state tax extension, because you have to calculate your North Dakota state tax liability. To assess your tax liability, you will need the following:

1. Your total income earned during the year, as reported on Form W-2 or Form 1099 - If you are self-employed, you will need to add up your total earnings and subtract your eligible business expenses.
2. Your total unearned income that is subject to taxation - Among other things, this includes unemployment compensation, rental property income and bank interest.
3. Your total state income taxes paid throughout the year - This will either be the amount of state taxes withheld from your wages or your estimated state income tax payments made.
4. A copy of your federal income tax return, if you are filing one
   

If you are not filing a federal tax return, you may want to consult a tax professional to help you to calculate the amount of your federal adjusted gross income and taxable income. You will need both of these figures to begin assessing your state tax liability.http://www.nd.gov/tax/indincome/forms/2010/nd1instruct.pdf

To complete the state tax extension form, you will also need the following:

1. Your Social Security number
2. Your complete mailing address
3. Your spouse's full name and Social Security number, if you are filing a joint tax return and extension
4. The date you would like your filing deadline extended to - Remember: Six months is the maximum extension you can receive.
5. The exact reason you are requesting an extensionhttp://www.nd.gov/tax/genforms/form101-enabled.pdf 

Next you will need to calculate how much tax you will owe, if any. This is important because you will still have to pay any balance due before April 18 to avoid being charged late penalties and interest on the balance. Knowing how much you will owe can help you to begin making arrangements to remit payment.http://www.nd.gov/tax/indincome/forms/2010/nd1-enabled.pdf 

You will need a paper copy of Form ND-1, the North Dakota Individual Income Tax Return, and the form instructions. You can download these from the North Dakota Office of State Tax Commissioner website or you can obtain them from your local library.http://www.nd.gov/tax/indincome/forms/2010/nd1instruct.pdf 

Before you begin working through the state tax return, stop and read the form instructions carefully. These explain income adjustments you may need to make and state tax credits that you may qualify to claim. Begin the form by entering the total of your federal adjusted gross income from your IRS Form 1040. Go on to enter the amount of your federal taxable income from Form 1040 as well.http://www.nd.gov/tax/indincome/forms/2010/nd1instruct.pdf 

From here, work through the return by making income adjustments as necessary. Be sure to stop and consult the instructions for explanation of these adjustments. Once you figure your North Dakota taxable income, check the tax tables located in the instructions for your tax liability. Enter this as your tax on line 20.http://www.nd.gov/tax/indincome/forms/2010/nd1instruct.pdf

Subtract any tax credits as well as the amount of your state income taxes already paid through withholding or estimated payments. What is left will be either the amount you will be refunded or the amount that you will owe.http://www.nd.gov/tax/indincome/forms/2010/nd1-enabled.pdf 

Now that you have figured the amount of additional tax owed, if any, you can complete your extension form. If you have filed a federal income tax extension using Form 4868, you do not have to complete a North Dakota extension request. You will automatically receive a state extension along with your federal extension.http://www.irs.gov/pub/irs-pdf/f4868.pdf See the tax form instructions to find out if you will need to attach a copy of Form 4868 to your North Dakota state tax return.http://www.nd.gov/tax/indincome/forms/2010/nd1instruct.pdf 

If you do need to complete a North Dakota extension request, you will need to get a copy of Form 101 "Application for Extension of Time to File a North Dakota Tax Return". This form can also be downloaded from the state website of obtained from the library.http://www.nd.gov/tax/genforms/form101-enabled.pdf 

Begin the form by entering your name and Social Security number, as well as your spouse's if necessary. Complete the address section and select the tax return that you will eventually file. Enter your requested filing deadline and fill in the exact reason you are requesting an extension. Then sign and date the form and have your spouse do the same.http://www.nd.gov/tax/genforms/form101-enabled.pdf 

Make a copy of the form for your records and send it to the address stated on the form. If you need to make a payment of tax, do not send it with this form. To pay your balance by credit card, you can call the State Tax Commissioner office and make a payment using the toll free number or pay the total through the state website.http://www.nd.gov/tax/genforms/form101-enabled.pdf 

If you prefer to pay by mail, get a copy of Form ND-1EXT "Individual Extension Payment" from the state website and complete it.http://www.nd.gov/tax/indincome/forms/2009/nd1-ext-enabled.pdf Send a check or money order for your balance along with that form to the address given. Be sure to do so before April 18.http://www.nd.gov/tax/indincome/forms/2010/nd1-ext-enabled.pdf

Once you send in your extension request, you will want to begin working on your state tax return immediately. This will help you to avoid last minute filing before the extended deadline. If you need assistance with your North Dakota tax return, you can learn how to prepare North Dakota taxes.