State Taxes on the Rise


         States all over the US are raising taxes in a variety of ways. Here are some that might have the biggest effect. For example, in Louisiana, the state sales tax has gone up to 5%. This makes the average local sales tax in the entire state about 9.99%, the highest in the US. It has also been extended to items that were exempt from taxes, like Mardi Gras beads. However, as of now this rate hike is set to expire in mid-2018.

          Pennsylvania is continuing to apply its 6% sales tax to digital downloads and streaming services. In a decisive change, the state will now tax all Lottery winnings. Pennsylvania had been 1 of the 2 states that did not apply State Income Tax to Lottery winnings. California is now the only state that has that view.

          New Jersey has added 23 cents to its Gas Tax to pay for Public Works projects. Part of that budget plan also includes some tax reductions. For example, when it comes to retirement income, by the year 2020 up to $100,000 will be free from state taxes. In addition, the state’s Estate Tax will no longer exist by 2018. It’s never too early to see your Tax Professional to find out how these changes might affect you.

Comments

Post a Comment

Popular posts from this blog

Early Results from Focused Efforts on High Income Tax Cheats

            Over the past year, the Internal Revenue Service ( IRS ) has used funding from the Inflation Reduction Act on audit activities for those who earn more than $1 million and have more than $250,000 in tax debt. In that time, the IRS collected $1 billion from the group that met these criteria. The increase in funding will allow for other goals to be reached as well.           More staff has been added and technology is being updated to provide better service to all taxpayers in the coming years. The IRS will now expand its enforcement activity to include complex partnerships, large corporations, and high-income high wealth individuals who do not file tax returns. In recent years the IRS was not consistent with enforcing tax rules in this area and had fallen behind in the ways some had gotten around their tax responsibilities. These new initiatives look to bridge that gap. If you are in need of t...
Read more

Protect Yourself from Threats

            When it comes to data security threats, the challenges never end. The tactics that criminals use continue to change, but there are some basic things to keep in mind. When it comes to mass email messages or texts, the goal is to get someone to click on a link to steal information or download malware. This is phishing or smishing. An update to this scam is called clone phishing. In this variation, a real email is copied and sent to the recipient again. This time it has an attachment with malicious software or a link to a website designed to steal your personal information.           We can never be too sure how the attack will present itself, but we can be prepared with security measures to protect ourselves. Stop and be aware of warning signs. Unexpected messages with urgent tones telling you to click or download something should be examined closely. Getting a repeated message from a trusted source w...
Read more

The IRS Focuses on High Income Tax Cheats

             The Internal Revenue Service ( IRS ) continues to focus on applying the tax laws with accuracy and fairness. With that in mind, they have announced that they are restarting a program that focuses on individuals who did not file returns from 2017 to 2021 and had at least $400,000 in income. They have identified at least 125,000 cases of people who are not in compliance.           The non-filer letters will be going out every week to start the process of filing returns, collecting taxes, interest, and penalties. The basis of these letters comes from information through Forms W2, 1099 and others. Those who receive letters of this nature need to take quick action. The enforcement actions in this program are stronger than usual. That makes it critical that those who receive these letters go to a qualified tax professional . The IRS can be made aware of qualifying deductions and credits that can ch...
Read more