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193 votes

What dissuades people from lying about where they live in order to reduce state income taxes?

Lying to save on taxes is called tax fraud. The threat of large fines and jail-time is what prevents most people from committing tax fraud.
Hart CO's user avatar
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69 votes

Is the Standard Deduction better than Itemized when both are the same amount?

Another reason to use standard: audit If you get selected for an audit of your itemized deduction or a specific category (e.g. all medical expenses or all charitable contributions) then at best you ...
Damila's user avatar
  • 1,327
59 votes

What dissuades people from lying about where they live in order to reduce state income taxes?

The very short version is "laws". The more helpful version is that every state has its own taxation requirements. For instance, if you work in Illinois you are required to file appropriate forms ...
BrianH's user avatar
  • 11.7k
56 votes

I hate the high taxes in NYC. Should I incorporate in or move to another state?

Whether or not you owe state income tax is determined by state residency rules. Say you work remotely for a company in Texas (no income tax state) but you spend all of your non-liesure time in NY, ...
quid's user avatar
  • 49k
45 votes
Accepted

Why did the federal government ever allow taxpayers to deduct their state taxes from their federal taxes?

At the end of 2017, President Trump signed into law the Tax Cuts and Jobs Act with among other things eliminated the federal tax deduction for state taxes paid. The state and local tax (SALT) ...
Hart CO's user avatar
  • 70.5k
35 votes

Can I submit my U.S. state income taxes in multiple envelopes?

Your entire return needs to be in one envelope. The IRS has a hard enough time dealing with a return in one envelope; there is no way they will be able to process a return that is split into multiple ...
Ben Miller's user avatar
  • 116k
29 votes
Accepted

Does the amount owed listed in my account on irs.gov include both federal and state taxes owed?

Nope, the IRS just deals with federal. You'll have to work with your state's department/office of revenue to settle up with them.
Hart CO's user avatar
  • 70.5k
24 votes

Why did the federal government ever allow taxpayers to deduct their state taxes from their federal taxes?

The state tax deduction lets you deduct state taxes paid from your taxable income for calculating the federal tax that’s due, not from the federal tax paid. Suppose you pay state taxes of $2,000 and ...
Mike Scott's user avatar
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22 votes
Accepted

I e-filed my taxes ONE SECOND after the deadline - am I in trouble?

It certainly seems like they could consider this late, but that's really up to them to decide if they want to hold you to the second or not. If they do, however, consider appealing the fee. From the ...
Joe's user avatar
  • 35.8k
21 votes

Is the Standard Deduction better than Itemized when both are the same amount?

As void_ptr clarified you won't be worse-off itemizing with deductions equivalent to standard deduction because the state refund is only taxable to the extent that the deduction benefited you. ...
Hart CO's user avatar
  • 70.5k
18 votes

I hate the high taxes in NYC. Should I incorporate in or move to another state?

First let me say, I AM NOT AN ACCOUNTANT! And you should talk to one. They're really great, and they save you a ton of money. For instance, I'm a mobile app developer based in NYC. I was in a similar ...
Elliot Schrock's user avatar
14 votes

What dissuades people from lying about where they live in order to reduce state income taxes?

Why stop at Indiana? Why not say you live in a tax haven in a completely different country, and not pay any taxes at all, even though you still remain in the same place? Oh, it's called tax evasion. ...
jcaron's user avatar
  • 3,952
13 votes

I hate the high taxes in NYC. Should I incorporate in or move to another state?

Since the current form of the question asks about moving to another state, yes, that's really probably your best option, provided that state is not something like California or Massachusetts. States ...
reirab's user avatar
  • 825
12 votes
Accepted

Strange number on Massachusetts Form 1-NR/PY

It is just showing (awkwardly, I admit) that the result of this calculation is the value for line 3, and not the 'total days as Massachusetts resident'. You can see this elsewhere on the form, e.g. ...
Craig W's user avatar
  • 15.9k
11 votes

I hate the high taxes in NYC. Should I incorporate in or move to another state?

There are many famous people who enjoy New York City, but do not enjoy the taxes. Many people commute to the city from Connecticut, New Jersey, or even further away. If you live in another state but ...
NL - Apologize to Monica's user avatar
11 votes

Why did the federal government ever allow taxpayers to deduct their state taxes from their federal taxes?

You have many questions in this question; try to focus down to one question and it is more likely to be answered. To address your question: why would any state in their right mind not impose state ...
Eric Lippert's user avatar
  • 5,006
11 votes

Can I use UPS to send my tax returns from abroad to IRS Austin?

From the IRS website - Austin - Internal Revenue Submission Processing Center 3651 S IH35 Austin, TX 78741 You are not the first person needing to ship to IRS via Fed-Ex or other private carrier. ...
JTP - Apologise to Monica's user avatar
10 votes

Why did the federal government ever allow taxpayers to deduct their state taxes from their federal taxes?

The original idea was this: The federal government taxes your income, but if you send your income on to somewhere else that is in the public interest, you wouldn't need to be taxed on that money, as ...
Ben Miller's user avatar
  • 116k
10 votes
Accepted

How to get money back from tax filing in US?

You definitely need to find out what 'that person' ever did or didn't do. Nobody here can tell you that. Maybe he never filed your taxes Maybe he didn't file your taxes yet because he was too busy ...
Aganju's user avatar
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10 votes
Accepted

Moved partway through 2020, filing taxes in both states?

You may have to file in both states. First determine when you switched from Michigan to Maryland. The switch of the drivers license shows that you made Maryland your new residence, but the date of the ...
mhoran_psprep's user avatar
10 votes

Can I submit my U.S. state income taxes in multiple envelopes?

The key is to understand how these forms are processed. They aren't going onto one person's desk to file things by taxpayer. Rather, they are opened in large quantities and typically checks will be ...
manassehkatz-Moving 2 Codidact's user avatar
10 votes

Where to file state income tax form?

TL;DR: She will need to file State forms both with NY and MA. this job required her to have a New York based address - this means that NYS expects her to pay taxes on the earnings. New York is ...
littleadv's user avatar
  • 177k
9 votes

Possible to avoid state taxes by not having a fixed residence?

I don't believe you can avoid it altogether, but you could claim residency in a state that doesn't have state income tax, such as Florida or Texas (there are others). There are several resources ...
BobbyScon's user avatar
  • 14k
9 votes

How do I recover income tax withheld to wrong state (where my home state has no income tax)

I was in a roughly similar situation: I moved from MA to WA part way through a year, paid by the same employer. I filed a tax return with MA (which I had to do anyways) and got a refund. Overall it ...
stannius's user avatar
  • 5,301
8 votes

If I work 100% remotely for a Florida company but I live in Virginia, do I have to pay Virginia state income tax?

Yes, as a Virginia resident you must pay income tax on income earned outside Virginia. If you pay income tax in another state, you can claim a credit in Virginia. However, because Florida has no state ...
Pacman's user avatar
  • 637
8 votes

Is the Standard Deduction better than Itemized when both are the same amount?

There is at least one state (Virginia) where one can only itemize the state tax if one itemizes federal taxes. So you might prefer to itemize the federal tax so as to be able to itemize the state tax ...
Brythan's user avatar
  • 21k
8 votes
Accepted

Is it legal to move to a different US state before moving out of the country to avoid paying state income tax abroad?

All US states have their own policy on what they consider "residency" and what they consider a taxable resident. So for example, California has income taxes while Nevada does not. Lets IMAGINE that ...
CQM's user avatar
  • 20.2k
7 votes
Accepted

I live in Maryland and work in Virginia. Do I need to file multiple state tax returns?

Maryland , Virginia, and Washington DC have a reciprocity agreement. You fill out all your taxes based on where you live not where you work. I have worked for a company headquartered in Maryland, but ...
mhoran_psprep's user avatar
7 votes

How Deductible Taxes Work When Not Withholding Taxes

The rule is simple: you deduct taxes in the year that you pay them. For withholding of state income tax, if you get state tax taken out of your check in 2016, that counts as paying the tax. You can ...
Ben Miller's user avatar
  • 116k
7 votes

I hate the high taxes in NYC. Should I incorporate in or move to another state?

Some states have no STATE income tax. But you still have to pay FEDERAL income tax. New York State income tax rates range from 4% to 8.82% of your income, so eliminating that could make a significant ...
Jay's user avatar
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