A Pennsylvania state tax extension is a provision that allows an individual who will be unable to file a tax return by the deadline to have additional time without being subject to the penalty for late filing. In Pennsylvania, the tax deadline is April 18, 2011. If you are approved for a state tax extension, you will have an additional six months to submit your return.c  

It is important that you only file an extension if you have a legitimate reason for not filing your return on time. The Pennsylvania Department of Revenue has the authority to deny your extension request and, if your reason is not considered to be valid, you may not be granted the extension.c

Before you begin your extension request, you need to gather all of the important tax information and paperwork you will need to assess your tax liability. To figure your tax liability, you will need the following:

1. Documentation of your earned income for the year - This will include wages and tips earned or self-employment earnings minus business expenses.
2. Documentation of your unearned income that is subject to taxation in Pennsylvania, such as unemployment compensation or gambling winnings
3. The total amount of your state taxes paid during the year - If you are an employee, this will be shown on your Form W-2 or Form 1099 as state taxes withheld. If you work for yourself, this will be the total of any estimated tax payments you made during the past year.
4. A paper copy of Form PA-40 "Pennsylvania Individual Income Tax Return" and the accompanying instructions - You can download this form from the Department of Revenue website or you can pick it up at your local library.c  
   

To complete the extension request, you will need:

1. Your Social Security number
2. Your current mailing address
3. Your spouse's name and Social Security number, if you are filing a joint tax return
4. A copy of Form REV-276 "Application for Extension of Time to File" - This form can also be obtained from the Department of Revenue website or the public library.
   

Note: If you are approved for a federal income tax extension and you will not owe any Pennsylvania state taxes, you will not be required to submit a Form REV-276 in order to receive an extension. Your state tax extension will be automatically granted along with your federal extension.c 

Now that you have all of the essential tax information that you will need, you can calculate your tax liability. Since your extension will not apply to any payment due, you need to correctly assess your taxes owed, if any, so that you can make arrangements to pay the balance before April 18, 2011. This will keep you from being charged a late payment penalty or interest on any balance left remaining due to underpayment.c 

Take out your Form PA-40. Read the form instructions carefully to make sure that you are including all of the taxable income you received this past year. Add all of your earned income and enter it on line 1. Then add any adjustments to income that apply to you. Be sure to consult the instructions for any line that you need some assistance with.c 

After you arrive at your PA adjusted gross income, you will figure your tax liability by multiplying your income by the Pennsylvania tax rate of 3.07 percent. This amount is your tax liability, or the amount of tax you owe on the income you earned that was subject to state tax.c

Then, subtract the amount of state taxes you paid during the year and apply any appropriate state credits. What you are left with will be either the amount of tax that you overpaid (refund) or the amount you underpaid (balance due).c

Once you have assessed the amount of state tax that you will owe, if any, you can complete your extension form. As noted before, even if your extension request is granted, you will still have to pay any balance due before April 18, 2011. To avoid late payment penalties, you will need to remit your tax due along with your extension request.c 

To complete the Form REV-276, begin by entering your Social Security number, along with your spouse's, if applicable. If you are an employer, you will also need to enter your Federal Employer Identification Number (FEIN). Select your filing status and the type of tax return you will eventually file.c 

Then, sign and date the form and, if you are filing with your spouse, he or she will need to sign and date it too. Write in the amount of the payment you will be remitting with the form. If you are due a refund, write zero in the box. Enter the date you would like your deadline extended to, remembering that six months is the maximum you can request. Make a copy of the form for your records.c 

To submit your payment, enclose a check or money order for the balance along with the extension request. Send both to the Pennsylvania Department of Revenue address listed on the form. Be sure to submit your form and payment by April 18, 2011. If you are unable to pay the entire balance all at once, send in what you can and inquire about establishing a payment plan with the Department of Revenue.c

If your extension is granted, you will want to start preparing your state tax return right away. This will save you time and help you to avoid any last-minute filing as the extension deadline steadily approaches. If you need assistance with your return, it is advisable to ask a tax professional for help.