2018 - 2019 Tax Software Reviews, Tips, and Tools

State Tax Preparation

State income tax is a tax on income generated by private parties or companies and is levied by each individual state. Unlike the federal income tax that is uniform throughout all the states of the union, state income tax is left up to each state to determine its rates. As a result, a handful of states had decided not to burden its citizens with income tax and those are Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. However, these states do collect income tax from corporations. And then, New Hampshire and Tennessee chose to tax income from dividends and interest only.

So now the need for state tax preparation is based on which state you live in.

State Income Tax Filing

Beginning with 2007, Vermont levies the highest rate of state tax filing out of all the other states at nine and a half percent at its highest end while Illinois levies a flat tax of a mere three percent. Most states have a progressive income tax where the taxation rates rise in direct correlation to increased income that is earned.

On top of federal and state income tax, several states allow cities to impose their own income tax and that would be added to the federal and the state.

For your convenience, I have compiled a list of State Department of Revenue Websites for your click and go convenience:

* Alabama Department of Revenue: http://www.ador.state.al.us/
* Alaska Department of Revenue: http://www.revenue.state.ak.us/
* Arizona Department of Revenue: http://www.azdor.gov‎

* Arkansas Department of Finance and Administration: http://www.accessarkansas.org/dfa/
* California Franchise Tax Board: https://www.ftb.ca.gov/index.shtml

* Colorado Department of Revenue: https://www.colorado.gov/revenue
* Comptroller of Public Accounts: http://www.window.state.tx.us/taxes/
* Connecticut Department of Revenue Services: http://www.ct.gov/drs/site/default.asp
* Delaware Division of Revenue: http://www.state.de.us/revenue
* District of Columbia: http://otr.cfo.dc.gov/

* Florida Department of Revenue: http://dor.myflorida.com/
* Georgia Department of Revenue: http://dor.georgia.gov/
* State of Hawaii Department of Taxation: http://tax.hawaii.govx
* Idaho State Tax Commission: https://tax.idaho.gov/
* Illinois Department of Revenue: http://www.revenue.state.il.us/
* Indiana Department of Revenue: http://www.in.gov/dor
* Iowa Department of Revenue & Finance: http://www.state.ia.us/tax
* Kansas Department of Revenue: http://www.ksrevenue.org/

* Kentucky Revenue Cabinet: http://revenue.ky.gov/
* Louisiana Department of Revenue & Taxation: http://www.rev.state.la.us/
* Maine Revenue Services: http://www.maine.gov/revenue/
* Maryland Comptroller of the Treasury: http://www.marylandtaxes.com/
* Massachusetts Department of Revenue: http://www.mass.gov/dor
* Michigan Department of Treasury: http://www.michigan.gov/treasury
* Minnesota Department of Revenue: http://www.taxes.state.mn.us/
* Mississippi State Tax Commission: http://www.dor.ms.gov
* Missouri Department of Revenue: http://dor.mo.gov/
* Montana Department of Revenue: http://revenue.mt.gov/default.mcpx

* Nebraska Department of Revenue: http://www.revenue.state.ne.us/index.html
* New Hampshire Department of Revenue: http://webster.state.nh.us/revenue/
* New Jersey Division of Revenue: http://www.state.nj.us/treasury/taxation/
* New Mexico Department of Revenue: http://www.tax.newmexico.gov/
* New York Department of Tax and Finance: https://www.tax.ny.gov/
* North Carolina Department of Revenue: http://www.dor.state.nc.us/
* North Dakota Office of State Tax Commissioner: http://www.nd.gov/tax/
* Ohio Department of Taxation: http://tax.ohio.gov/
* Oklahoma Tax Commission: http://www.ok.gov/tax/
* Oregon Department of Revenue: http://egov.oregon.gov/DOR/
* Pennsylvania Department of Revenue: http://www.revenue.state.pa.us/
* Rhode Island Division of Taxation: http://www.tax.ri.gov/
* South Carolina Department of Revenue: https://dor.sc.gov/
* Tennessee Department of Revenue: http://www.state.tn.us/revenue/
* Utah State Tax Commission: http://tax.utah.gov/
* Vermont Department of Taxes: http://tax.vermont.gov/
* Virginia Department of Taxation: http://www.tax.virginia.gov/
* West Virginia Department of Tax & Revenue: http://www.revenue.wv.gov/Pages/default.aspx

* Wisconsin Department of Revenue: http://www.revenue.wi.gov/

I do not know you very well. Actually I do not know you at all because we have not yet been properly introduced. Nevertheless, I am willing to bet that, if you are not fortunate enough to live in the few states that forgo income tax, you would prefer saving time on your next state tax preparation as well as lower the stress level of the entire process. Am I correct?

Well, if you choose to prepare your income tax online and file the returns electronically, you can and will save on time and distress. When using any one of the many available software programs you can prepare and then file, your state income tax and your federal income tax at the same time because when you enter information in one of the two, either the federal or the state income tax, that same information is automatically entered on both. In other words, there will never be a need to repeat yourself.

What You Need To Know About State Tax Preparation

Tax rules can vary dramatically from state to state which makes state tax filing slightly more complicated than Federal tax filing. If you understanding how your state tax laws work it will help you file state taxes quickly and easily, while taking advantage of any available tax deduction opportunities.

The starting point for just about every state income tax return is the completion of your federal tax return. You’ll want to be complete your federal tax return accurately before you even think about preparing your state return.

Begin by entering the applicable information from your federal return on your state tax return while making adjustments as necessary to reconcile the differences that need to be applied between your federal taxable income and your state taxable income.

Some adjustments will be additions, or add-backs of any federal deductions you may have taken that are not allowed by your state. You may also have income that is tax-exempt for federal purposes, but taxed on the state level. Other subtractions may apply for income that is taxable under federal law, but not under your state tax law. Some of these subtractions may also be state-specific deductions. Make these adjustments carefully to avoid mistakes.

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