New York State Tax

State Tax Filing

Most taxpayers are well aware of their own state's rules and regulations regarding income tax filing and payment. However, a move or change in job could require them to file in a new or even multiple states. There are a few key things to keep in mind when considering state tax filings. These include the existence of income tax filing requirements, does the state accept e-filing, what are associated interest and penalties for late filings.

There are still a few states in the United States that do not rely on income tax revenue to make money. These states include Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Additionally, there are two states that do not tax an individual on earned income, but do tax any interest or dividend income. These are Tennessee and New Hampshire. Knowing which states do not tax income can be helpful in planning long-term financial goals like retirement.

E-filing, which has been available for close to a decade now, continues to gain popularity with the public because it is often faster and easier. E-filing federal returns is an easy and consistent process, however, there are a handful of states that have some specific e-filing requirements. For example, there are only five states (California, Illinois, Main, Massachusetts, and Minnesota) that allow an individual to e-file their state return completely independent of the federal return. This means that even if an individual chooses to mail their federal return, they are still able to e-file the state return. In Arkansas the state return must be e-filed with the federal return. The remaining states that require a state income tax return accept e-filed returns either with the federal return or after the federal return. Unfortunately, there is also a limit on the number of state returns that an individual can e-file. For someone filing returns in multiple states, they can only e-file up to three state returns, the remaining state returns must be filed through the mail.

Similar to federal tax requirements, each state will charge interest on any taxes owed from the filing deadline of April 15 until they are paid. There are also additional penalties in most states for a late return or if there is missing information on the return. This is why it is important to file one's return on a timely basis.

If you need help filing your tax return or need to speak to a professional about your return you can find local bookkeepers, accountants and Certified Public Accountants here.