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Tax season is a stressful time for everyone but a select few people face even more tax stresses. These people live in states that also collect a state income tax. This tax acts exactly like its federal counterpart but is always at a much lower overall value. It is a common way for states to raise extra money to fund education and highway maintenance.
This tax can be tricky since not all states charge an income tax. An individual that has moved from a state without it may find themselves trying to quickly correct not paying their taxes when their paycheck gets garnished. It is vitally important that these residents realize that their state does charge a state tax and will collect it whether they file or not. State governments tend to be far less forgiving about unpaid taxes and will act very quickly to collect what they believe they are owed.
Another common misconception is that income earned in a state that does not collect state level taxes does not have to be reported if one's residence is in a state that does collect state level taxes. The origin of income is irrelevant when it comes to tax debt. The only factor that matters is where someone claims their residence. If income is earned in a state that does not collect taxes but that person lives in a state that does, it is the responsibility of the individual to report this income and pay the taxes on that income. It may seem counter intuitive, but it is how the current tax system is set up.
There are enough issues that pop up when it comes time to pay taxes. Some people find that they owe more than they can pay or that they have misreported on accident. It is important to remember every branch of the government that is owed money and not find yet another agency trying to collect more than the actual debt owed. Anyone that is ever unsure of the process for paying these taxes should contact their state government or find a local accountant that will be more than capable of determining the total debt owed.
What else can I help you with?
What if you forgot to sign a state income tax return?
That is just like the state income tax return was never filed. Contact your state tax department ask if they received your and accepted your unsigned state income tax return. You will to make sure so that you can file your correctly completed and signed state income tax return to make sure that the state receives it and accepts your income tax return as you filed.
Is there state income tax in Illinois?
There is a state income tax in Illinois.
What is the state income tax of Texas?
Texas does not have a state income tax.
When filing for the state income taxes do you receive your federal income tax refund as well as your state income tax refund?
No, when filing for the state income taxes, you will receive your federal income tax refund as well as your state income tax refund.
To whom does one make payment for the 2008 NY State taxes?
Assuming you are referring to the year-end income tax for the State of New York,the answer - - which may be found in the NY State Income Tax instructions and online (refer to the link, below) - - is: New York State Income Tax.Don't forget to write your social security numberand the words "2008 Income Tax" on the check,assuming, of course, that your payment is for the 2008 tax year.
Are income tax payments deductible?
State income tax payments are deductible on your federal income tax return. (You may deduct state income tax or sales tax, but not both.) Federal income tax payments are deductible on your state tax return in a tiny number of states.
If you live in a state that does not have a state income tax and work in a state that does have a state income tax are you obligated by law to pay state income tax to the other state?
Yes..only on that portion of income properly allocated or attributable to that State.
Do i need to file a Florida state income tax return?
Florida does not have an individual state income tax. They do have a corporate income tax.
Similarities between state income tax and federal income tax?
The taxable amounts of the income from each income tax return will be taxed at the tax rates for the state and for the federal.
Does South Dakota have a state income tax?
No, South Dakota does not have a state income tax.
When filing for the federal income tax return do you have to attach schedule a for the state income tax return?
No, when filing for the federal income tax return, you do not attach the Schedule A for the state income tax return.
If you live in a state that has income tax and work in a state that doesn't do you have to pay income tax?
it is residential
