Category: State Taxes | Blog

rt_statetaxesState taxes are just as important to stay current on as federal taxes. We’ll let you know how to avoid state penalty fees and file on time. Are you a resident or a nonresident? We tell you how to file in both situations.

Questions about your state tax return? Leave a comment on our blog and we’ll get back to you with the answers you need!

Archive for the ‘State Taxes | Blog’ Category

Am I Still Required to File A Past State Tax Return?

Posted by Manisha Hansraj on September 24, 2018
Last modified: September 25, 2018

states with no income tax

Don’t worry about filing a past state tax return if you belong to one of these as your resident state.

The U.S. states that do not have income taxes are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. However, just because you don’t need to pay income tax, doesn’t mean a state is any cheaper to live in. In order to maintain state revenue, states with no income tax rely on other uses of taxes such as estate, property, sales, excise, gift taxes and more.

For example, here are a few ways each state maintains their state revenue:

  • Alaska depends on estate, excise, gift and severance taxes
  • Florida depends on property, sales, and corporate income taxes
  • Nevada; being a tourist attraction, depends on fees, gambling taxes, and high sales taxes
  • South Dakota taxes property, alcoholic beverages and cigarettes
  • Texas depends on high use, sales and property taxes
  • Washington depends on business, occupation and sales taxes
  • Wyoming depends on taxing property and businesses

Unlike the seven states above, New Hampshire and Tennessee do not have personal income taxes but still taxes specific types of income. New Hampshire doesn’t have sales tax, or inheritance tax but it does tax interest and dividends. Tennessee does not have estate and inheritance tax but taxes dividends and interest due to its Hall Tax.

Have you forgotten to file a state return or two?

(more…)

Can you still get tax free back to school shopping?

Posted by Manisha Hansraj on August 23, 2018
Last modified: August 24, 2018

Are you a little late on back to school shopping?

There’s some good news for you. States have been cutting you some slack when shopping for items such as computers, notebooks, clothes and even some home goods (for college dorms) for the month of August.

However, it depends on what each state determines which items are tax-free. There also may be a price cap per item to qualify for no sales tax. Let’s take a look at which states still offer tax-free shopping. (more…)

If You Work Remotely Where Do You Pay Taxes?

Posted by Robert Flanagan on October 27, 2016
Last modified: October 28, 2016

You work from home…but where do you pay taxes?

In our post “Living in One State, Working in Another“, we explained how to file state taxes if you work in one state but live in another.

However, with all the (exciting) advances in technology, more and more individuals are trading in their commutes to the office to instead work remotely from home.

If you work remotely and the company you work for is in a different state than you live in, then your tax situation will differ from someone who physically travels to another state for work.

We understand that you may have no idea how to file your state taxes. We’re here to help!

File taxes to one or two states?

Depending on your specific tax situation, you may need to file two state tax returns; a resident return and a non-resident return. (more…)

How To File Taxes in Two Different States

Posted by Robert Flanagan on October 23, 2016
Last modified: October 24, 2016

Do you carry the burden of dealing with multiple states on your tax return?

For most of us, filing a state tax return is just another step in filing a federal return. Your tax-filing software just transfers your information to your state’s return and you’re done within minutes.

But what if you moved to a different state during the tax year? What if you worked in a state other than the one where you lived? What if you worked in multiple states? Suddenly filing state taxes becomes a little trickier and it may involve filing taxes in two different states.

Basically there are three different types of state tax returns that you need to worry about:

  • Resident
  • Part-Year Resident
  • Nonresident

(more…)

Do I Pay State Taxes If I Live in Florida and Work in Georgia?

Posted by Robert Flanagan on October 23, 2016
Last modified: October 24, 2016

With Disney, beautiful beaches and no income taxes, Florida seems like heaven on Earth!

But what if you live in Florida but travel to a neighboring state for work? Well, working in a state with an income tax while living in Florida means you’ll have to pay taxes to the state you earn your income from.

For Florida residents, working in a bordering state such as Georgia, Alabama or Mississippi, you’ll have to pay tax only on the income you received there. To report this, you will file a non-resident return for the state you work in when filing your taxes.

I Live in Florida and Work in Georgia

According to the Georgia Department of Revenue website, non-residents who work in Georgia or receive income from a Georgia source…

(more…)

Can You Be a Resident of Two States at the Same Time?

Posted by Robert Flanagan on October 23, 2016
Last modified: October 24, 2016

You can be a resident of two states but you may want to avoid it.

If your life mostly involves just one state, filing state taxes is relatively simple. When your life involves more than one state, things can get complicated pretty quickly.

Everything depends on residency. It determines where you have to file, what kind of return you have to file, and how much you’ll be taxed. The problem is, determining residency is more complicated than it sounds. The states have convoluted and differing definitions of what constitutes a resident.

Generally, you can only be a full resident of one state. Most filers who spend time in two states end up filing a resident return to one state and a non-resident return to the other.

Is this even possible?

Yes, it is possible to be a resident of two different states at the same time, though it’s pretty rare. One of the most common of these situations involves someone whose domicile is their home state, but who has been living in a different state for work for more than 184 days. In a situation like this it is conceivable that you could be the resident of two states. (more…)

State Income Tax: Living in One State, Working in Another

Posted by Robert Flanagan on October 17, 2016
Last modified: October 18, 2016

Need to file state taxes when you live and work in different states?

Most people in the U.S. live and work in the same state, which makes state taxes pretty easy to understand – you pay taxes to the state where you live and work.

But what if you live in one state and work in another? Do you pay taxes to the state where you live? Where you earn an income? Both?!

You need to pay taxes to both. Most likely you will end up having to file a resident return in the state where you live and a nonresident return in the state where you work.

Resident return

Generally you need to file a resident return in the state where you are a permanent resident. This state has the right to tax ALL of your income, wherever it was earned. (more…)

Delay in State Tax Refunds for 2016

Posted by Robert Flanagan on May 2, 2016
Last modified: October 6, 2016

Identity theft is real, and it is REALLY affecting when we get our state refunds.

Remember being in elementary school, when your teacher would tell the class that if one more student misbehaved, then the entire class would be forced to sit inside for recess that day? There was always that one kid who would ruin it for everyone.

That is similar to what’s going on with identity theft affecting state refunds this year. State revenue departments decided that there were too many cases of fraudulent activity and that they needed to do something. This means that refunds are being delayed a bit in order to double check certain taxpayer information.

Let’s take a look at the states that took a little extra precaution this 2016 tax season.

Illinois and South Carolina

These guys put provisions into play from the very beginning of the season. If you filed your state return in January or February, then you wouldn’t have seen your refund until at least mid-March. On top of that, if you filed your return after March 1st, 2016, then your refund was sent approximately three weeks from the date it was accepted.  

Hawaii

Taxpayers could be waiting for their state tax refund anywhere from four to sixteen weeks after being accepted. Good thing that Maui ranks as the #1 vacation spot in the U.S.! You won’t need to travel too far to relax and forget about the lack of refund money you’re waiting on.

Idaho

Identity theft in the Great Potato State has increased by nearly 64% since 2014! Extra safety measures means taxpayers will be waiting about seven weeks for their state refund from the time it is accepted. The ID Department of Revenue recommends responding ASAP to any letters you receive from the Tax Commission to speed up the processing time. (more…)

Does California Tax Income Earned in Other States?

Posted by Robert Flanagan on April 3, 2015
Last modified: October 6, 2016

Yes, California taxes income earned from ALL state sources.

If you’re a California resident, you’re no stranger to high tax rates. In fact, you pay the highest income tax in the country!

Here’s another fact: if you earned income working in another state, you’ll still be forced to pay the same, high California tax rate, even if that other state has a lower tax rate.

According to CA.gov, California residents  are “taxed on ALL income, including income from sources outside California.”

What About Income From a Non-Income Tax State?

If you earned income in one of the seven states that doesn’t assess income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming), or one of the two states that have no tax on wages (Tennessee and New Hampshire), you’re still required to pay tax on that income to the state of California.

So, let’s say you work remotely from your home in San Diego for a company located in Texas. When filing, you’ll report this income on your California tax return. You’ll also pay a chunk of CA tax on it.

The one piece of good news is that you won’t need to file a non-resident tax return to the tax-free state. You’ll only be required to file a resident return to California. (more…)

California Income Tax Rates

Posted by Robert Flanagan on March 19, 2015
Last modified: March 21, 2017

California residents pay the highest income tax rates in the country…

California is a paradise to its 38 million residents. Wines in Napa, celebs in L.A., Disneyland in Anaheim, the zoo in San Diego, well, there’s a lot to see and do.

However, living in the golden state comes with a hefty price tag. California levies the highest tax rates in the country. If you’re a new CA resident, you’re bound to notice it most when you file your state return.

Just how pricey is it?

Here are the 2014 California income tax rates for single filers:

California 2014 Tax Rates.jpg

If you’re Married Filing Jointly or Head of Household, just double the income brackets listed above. (more…)