Category Archives: Tax Law

A Few Tips For Your State And Local Taxes

Most people have creative ways to save on their federal taxes, but miss out on tips to maximize their local, state tax refund. Your State collects a portion of taxes from your income, and you’re entitled to a portion of that back each year. It is drawn from a taxpayer’s taxable income by the state. Your state income taxes are an important part of your tax entitlement. You should always include your state, and local income tax obligations, and financial amount to avoid a penalty, or losing money you’re entitled to under state tax laws set by your current state.

Three Tips To Save On Your State And Local Taxes

Combine Your Taxes

Many tax preparers will offer incentives to customers who combine their other taxes with their state income taxes. This incentive is usually offered to customers who file online also. The best way to take part in this tip saving idea is by asking your tax specialist in advance about their state tax savings opportunities.  Not all states apply here.

Participate In State/Local Deductions

There are many state income tax deductions available to taxpayer’s. Deduct the state, and local taxes on throughout the year on all the state approved items, and services each year. For example, you can get a deduction for sales tax, property taxes, and real estate according to the state tax rules of your state. Some states will also allow taxpayers to write-off their annual general state taxes. It’s also important to make provision for these state deductions before they are reformed by Congress. The reform would eliminate the tax on the state/local level. Keep your eyes posted for 2018 tax reform.

Ask A Tax Professional

A tax professional is trained, and qualified with the tax knowledge to help you get your maximum state refund, and save. You should always be aware of their qualifications, past experience, and how they can help you get the best state, and local taxes.

Your state, and local taxes don’t have to be hard to file, or cost a significant amount, if you use reliable tax savings ideas, and tips. Get the most out of the taxes you pay each year on your state, and local taxes.

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The Future of Income Tax Regulation

As time goes on, each political campaign mentions either abolishing the IRS or simplifying the code to allow for easier completion.

I am not confident in either of those taking place. While the simplification of the code would do wonders, the complexity of it also aides in positive reinforcement.

Things such as adopting children, going to college, buying a energy efficient car, are often things done through the tax code to get the public to do something. Not saying that is right or wrong, it just is what it is.

Whenever you get politics involved, the process becomes very time consuming and difficult, as every special interest group and lobbyist is after their time and vote. So getting pulled in a million different directions just makes it even harder to get real reform completed.  No matter what happens, someone will not be happy with the changes.

One area that I think will never change is the charitable deduction. There is too much pressure on this as many people give to Goodwill and Salvation Army. One thing I could see though is additional phase outs for high income earners.  The AMT is getting enough pressure as it is though, so that is another sticky topic will will discuss in future tax articles.

While there is lobbying on behalf of tax preparers, there will always be a segment of the population that needs some sort of advice and financial wisdom, so your jobs are not going away, only perhaps change a bit as time moves on and the IRS evolves.

Tax code is extremely complex and if you do not feel confident or have a unique circumstance, seek the help of a tax professional near you.