Every year, towards the end of January, most Americans gradually start to get involved in their annual rite of Spring — beginning to prepare their IRS income tax returns. For some it’s relatively easy. For others, it’s a laborious process that can often require filing a 15 April tax extension while all the needed documentation and compilations are collected. Personally I haven’t filed my 1040 income tax package “on time” in over 20 years. Normally I file in July or August. I have a suggestion for you this year: Once you have a fair idea of approximately what your tax and deduction numbers are, take your estimated figures and plug them into the Tax Foundation tax calculator. Unlike most such guesstimating calculators, this one takes your figures and calculates your taxes two ways: 2017 IRS rules 2018 IRS rules — the new rules after the GOP’s tax reform passed It shows you how much more or … [Read more...] about Run your 2018 income through this federal income tax calculator
State income tax california
Is it better to live in a state with no income tax? It’s a great question to ask, especially when considering how much of our paycheck is already set aside for Uncle Sam. Seven U.S. states forgo individual income taxes as of 2018: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Residents of New Hampshire and Tennessee are also spared from handing over an extra chunk of their paycheck, though they do pay tax on dividends and income from investments. The main benefit of eliminating the individual income tax, proponents say, is that states with no income tax on residents become beacons for growth. They’re better at creating jobs and keeping a core of young, educated workers from moving to other states. The American Legislative Exchange Council reports that over the past decade the nine states without a personal income tax have consistently outperformed the nine states with the highest taxes on personal income in job creation, population growth and even … [Read more...] about Is a state with no income tax — like Washington — better or worse?
Not surprisingly for a state of nonconformists, the Legislature adjourned last week end without conforming California state income taxes to any part of the Republican-crafted federal tax law passed in December. That means the federal law won’t affect how much Californians pay in state income tax for 2018, although it could make filing tax returns more complicated for some. Those who take the new, higher standard deduction on their federal return will still be able to claim itemized deductions on their state return. Ever since the federal law passed, I’ve been getting emails from readers who thought their California income taxes would go up if the Legislature did nothing, perhaps because they’d be losing deductions without a corresponding cut in state tax rates. That could be true in some states that automatically conform to federal tax law changes unless their legislatures opt out, but California does the opposite: It does not conform to any federal changes — … [Read more...] about Relax: The federal tax law won’t raise your California income tax
PROVIDENCE – The median wage for a worker in the Providence-Warwick-Fall River metropolitan area, when adjusted for cost of living, and federal and state income taxes, was slightly more than the national average, according to the Hamilton Project, a new interactive website created by the Brookings Institution. The project is designed to help people understand what the true value of a given wage is in selected regions, adjusting for a number of factors, allowing for a more informed comparison of one region to another. Thus, while the unadjusted median income of the Providence metro area was $46,000, according to the project, compared with $41,216 nationally and $55,694 in the Boston metro, when adjusted for the cost of living and income taxes, it totals $33,923, compared with the national average of $31,595 and $35,869 in the Boston-Cambridge-Newton metro. When adjusted solely for cost of living, the median income in the Providence metro was $148 higher than the … [Read more...] about Brookings Institution: Median wage adjusted for cost of living and income taxes is $33.9K in Providence metro
Photo: Kevin Hagen Image 1of/1 CaptionClose Image 1 of 1 HEMPSTEAD, NY - MAY 23: Gov. Andrew Cuomo speaks to the press during the New York Democratic convention at Hofstra University on May 23, 2018 in Hempstead, New York. Hillary Clinton attended the event to support Governor Andrew Cuomo's bid for a third term. (Photo by Kevin Hagen/Getty Images) less HEMPSTEAD, NY - MAY 23: Gov. Andrew Cuomo speaks to the press during the New York Democratic convention at Hofstra University on May 23, 2018 in Hempstead, New York. Hillary Clinton attended the event to ... more Photo: Kevin Hagen Feds warn New York, other states about tax deduction workarounds 1 / 1 Back to Gallery ALBANY — Even as a number of school districts are looking at doing so, the federal government is warning against creation of charitable trusts and other measures designed to counter new federal limits on tax … [Read more...] about Feds warn New York, other states about tax deduction workarounds