Navigating state taxes can be difficult because so many rules and regulations differ from state to state.
State income tax is a critical component of your financial obligations; it is enforced by each state government and is typically due on April 15 of each year.
However, not all states levy income taxes on individuals. Alaska, Florida, Nevada, South Dakota, Texas, and Washington, including Wyoming, have no state income tax, whereas New Hampshire as well as Washington tax specific income sources such as interest, dividends, and capital gains.
Property taxes are another important consideration for taxpayers, with median rates varying by state.
Alabama has the lowest median property taxes, while New Jersey imposes the highest.
When planning your finances, it is critical to consider these potential expenses.
Retirement income taxation varies by state, with some states providing exemptions for Social Security benefits including pension payments.
In contrast, some states, such as Iowa, Kentucky, Maryland, Nebraska, and New Jersey, as well as Pennsylvania, impose inheritance taxes.
Filing state taxes can be a daunting task, however, understanding the process can help relieve some of the stress. Whether filing electronically or by mail, accuracy is paramount.
Furthermore, taxpayers should be aware of the timeline for receiving their state refunds, which can differ depending on the filing method and state regulations.
Tracking Your Local and State Tax Refund
The Internal Revenue Service (IRS) generally disburses tax refunds within 21 days for electronically filed returns, whereas paper returns may require a longer processing period.
Nevertheless, multiple factors could contribute to delays or discrepancies in your refund.
If you submit your tax return electronically, you can typically track the status of your refund online or via phone.
Alternatively, if you mailed your return, anticipate a lengthier processing time and contemplate reaching out to your state’s tax department for assistance.
TaxAct users have the option to monitor their return status through the E-File Status page.
