Sales & Use Tax

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Under the TCJA, taxpayers could deduct unreimbursed medical expenses that exceed 7.5 percent of their AGI in 2017 and 2018. Congress later extended the lower floor through 2019 but as of now, the floor will revert to 10 percent of AGI in 2020 unless Congress again extends it. HB 487, effective July 1, 2018, requires remote retailers with 200 or more sales into the state or $100,000 or more in gross receipts from sales into the state to register and collect Kentucky sales and use tax. The transaction and gross receipts thresholds are based on the previous or current calendar year sales. These thresholds are the same as confirmed in the Wayfair US Supreme Court decision.

Measured as a percentage of after-tax income, the tax saving from the SALT deduction in 2018 was about one-quarter of what it was in 2017 overall. For taxpayers in the top 1 percent of the income distribution, the tax saving in 2018 was about one-tenth of the tax saving in 2017 (figure 2). The distribution of the tax benefits from the SALT, mortgage interest, and charitable deductions in 2019 are similar to those in 2018.

How do 2018 tax reform changes affect my self-employed business?

If you are a nonresident and need to amend your return, you must file Form 505X. Let an expert do your taxes for you from start Check in on the Sales Tax Deduction for 2018 to finish with TurboTax Live Full Service. Or get your taxes done right, with experts by your side with TurboTax Live Assisted.

• Connecticut Sales and Use Tax is based on the NADA average trade-in value or bill of sale value (whichever is higher).
• Contributions to traditional IRAs and qualified plans such as 401(k)s are an “above the line” deduction.
• We also recommend you include your Social Security number on your check or money order.
• Yes, the Individual Tax Rates are lower beginning in 2018 (check your Tax Bracket here).

Auctions 

In general, vehicles purchased at auctions are subject to sales tax. However, if a vehicle or vessel is sold by a federal referee as a result of bankruptcy, the purchase is not subject to sales tax. Your residency status largely determines which form (paper or electronic) you will need to file for your personal income tax return. Hawaii has the broadest sales tax in the United States, but it taxes many products multiple times and, by one estimate, ultimately taxes 119 percent of the state’s personal income. This base is far wider than the national median, where the sales tax applies to 36 percent of personal income. Only South Dakota and Vermont saw a ranking change of more than one place since January.

State and Local Sales Tax Rates in 2014

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Fill-out forms are better than hand written forms because they offer a cleaner and crisper printout for your records and are easier for us to process. [2] Special taxes in Montana’s resort areas are not included in our analysis. State of Georgia government websites and email systems use “georgia.gov” or “ga.gov” at the end of the address. Before sharing sensitive or personal information, make sure you’re on an official state website. Unless otherwise noted, the following information applies to individuals for tax year 2022. For information about another tax year, please review the Department’s Instructions and Bulletins for that year.

Expert does your taxes

The Montana Department of Revenue is unable to assist in securing your stimulus payment. Throughout this event, we will work hard to keep you updated on the impact COVID-19 has on taxation, alcoholic beverage control, and property assessment. The My Revenue portal will no longer be available after July 23, 2021. Department of Revenue forms will be made available on MTRevenue.gov. I am writing to you today to put in a great word for a person in the state employ.

• These omissions result in some amount of inexactitude but overall do not have a significant effect on resultant averages because proximate ZIP code areas that do have ZCTA population numbers capture the tax rate of those jurisdictions.
• For information about another tax year, please review the Department’s Instructions and Bulletins for that year.
• All features, services, support, prices, offers, terms and conditions are subject to change without notice.
• If the total for your itemized expenses is greater than the standard deduction for your filing status, it makes sense to itemize.
• Subsequent legislation made that provision permanent starting in 2015.

The hotel occupancy tax, imposed at the same rate as sales tax, applies to room rental charges for periods of less than 30 days by the same person. In addition to hotels, the tax applies to
rentals of rooms, apartments and houses arranged through online or third-party brokers. While many taxpayers may think that itemizing is the better choice, the standard deduction was nearly doubled by the Tax Cuts and Jobs Act of 2017. In certain circumstances, it may reduce your tax bill more than itemizing. Motor vehicles registered on October 1st will be part of the October 1st Grand List.

These omissions result in some amount of inexactitude but overall do not have a significant effect on resultant averages because proximate ZIP code areas that do have ZCTA population numbers capture the tax rate of those jurisdictions. State and local governments should be cautious about raising rates too high relative to their neighbors because doing so will yield less revenue than expected or, in extreme cases, revenue losses despite the higher tax rate. Because it is in lieu of your having to add all of your general sales tax payments from your receipts, which you are always entitled to do. One particularly valuable deduction for self-employed people defers taxes on their contributions to retirement plans. Tax-deferred retirement plans—including the SEP-IRA, the SIMPLE IRA, and the solo 401(k)—are designed specifically for the self-employed, solo operators, and small business owners.

The donor can’t receive any consideration (cash, property, service, assumption of debt, etc.) in return. Please be aware that a donor who gives a motor vehicle or vessel may be subject to the Connecticut gift tax. Generally, the gift tax is imposed on the transfer of property by gift during each calendar year.

Estate and Fiduciary Forms

If the amount of the home mortgage interest and real estate taxes paid by both spouses exceeds $20,000, these deductions must be prorated based on the percentage paid by each spouse. For joint obligations paid from joint accounts, the proration is based on the income reported by each spouse for that taxable year. TCJA significantly decreased the number of taxpayers claiming itemized deductions and the average tax saving from claiming them. The deduction for state and local general sales tax is meant to be the amount of sales tax you actually paid. Rather than require you to keep all of your receipts, the tax law allows you to use the optional sales tax tables provided by the IRS.

The state sales tax rate was 4% for periods prior to April 1, 2016. The TCJA limited the deduction to the home mortgage interest on the first $750,000 of mortgage debt (reduced from the pre-TCJA limit of $1 million of mortgage debt) for mortgage loans taken out after December 15, 2017. Homeowners may no longer deduct interest paid on home equity loans, which was allowed for loans up to $100,000 before the TCJA, unless the debt is used to buy, build, or substantially improve the taxpayer’s home that secures the loan. Homeowners may still deduct mortgage interest on their primary residence and a second home. The Tax Cuts and Jobs Act (TCJA) increased the standard deduction from $6,500 to $12,000 for individual filers, from $13,000 to $24,000 for joint returns, and from $9,550 to $18,000 for heads of household in 2018.

Members of the United States armed forces who are residents of Connecticut are subject to a 6.35% (7.75% for vehicles over $50,000) sales and use tax. Please include your name, address, a contact number and the last four digits of Social Security number on all correspondence. Be sure to include your full Social Security number on tax returns. If you owe additional Maryland tax and are seeking an automatic six-month filing extension, you must file Form PV along with your payment by April 15, 2020. You should file Form PV only if you are making a payment with your extension request. TurboTax Premium searches 500 tax deductions to get you every dollar you deserve.

Businesses that make retail sales or provide retail services may be required to collect and submit retail sales tax (see Marketplace Fairness – Leveling the Playing Field). In any case, it’s worth reading your state’s tax forms closely to see if there are any additional deductions for which you might qualify. For example, in New Mexico, you are exempt from state income tax when you reach age 100. And Nevada taxpayers can get a free pack of cards for filing their tax returns.