Tax Blog

New York State Income Taxes range from 4 to 6.85 percent based on the following categories:

1) Personal income tax
New York state taxes for personal income use a progressive, five-bracket system.

For single taxpayers:
- 4% on the first $8,000 of taxable income
- 4.5% on taxable income between $8,001 and $11,000
- 5.25% on taxable income between $11,001 and $13,000
- 5.9% on taxable income between $13,001 and $20,000
- 6.85% on taxable income of $20,001 and above.

For married persons filing joint returns, the rates are the same but the income brackets are doubled.  New York income tax forms are due on April 15, but if this date falls on a weekend or holiday, payment can be done the following working day. New York City has its own tax rates brackets. The state’s earned income credit has increased to 30 percent of the federal credit. This credit helps taxpayers offset increases in living expenses and Social Security taxes. It also reduces taxes owed and in some cases, it can even allow a refund to filers who do not owe any tax.

2) Sales tax
On June 1, 2005, New York’s additional 0.25 percent sales and use tax rate has expired and it lowered the New York state taxes rate on sales to 4 percent. Local rates vary and in some areas, the combined sales tax rate in can be more than 7 percent.

3) Personal and real property taxes
Real property in New York is taxed based on its value. Counties, cities, towns, villages, school districts and special districts raise money through the real property tax to pay for local services. The amount of a property’s tax bill is determined by the property’s taxable assessment and the tax rates of the taxing jurisdictions where the property is located. The law on New York State Taxes enables properties in most municipalities to be assessed at under the same value percentage. That percentage can be 5 percent, 10 percent, 50 percent or any other percentage not exceeding 100 percent.

4) Inheritance and estate taxes
New York has no inheritance tax. The state has decided to discontinue its estate tax link to the federal estate tax. This means that New York estate tax liability will be larger than the allowable federal credit for state death taxes.

Other facts on New York State Taxes:

The status of New York State Taxes can be checked using the New York State Department of Taxation and Finance’s online refund tracker. New York taxpayers can learn about their rights in Publication 3.8.

Know the steps to file state taxes
Do you need help on how to file state taxes? Here are the basic steps you need to know about how to file state taxes.

Note that the there is now what we call the e-file where Federal/State taxes can be filed electronically or online. The IRS and the state tax administration agencies have combined efforts to enable taxpayers to file their taxes online. It can be done through tax professionals and in most states, conveniently filing it through your computer at home. Note that the following states participate in the Federal/State e-file:

• Alabama
• Arizona
• Arkansas
• Colorado
• Connecticut
• Delaware
• District of Columbia
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maryland
• Michigan
• Mississippi
• Missouri
• Montana
• Nebraska
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• Utah
• Vermont
• Virginia
• West Virginia
• Wisconsin

At the same time free e-file is provided for taxpayers who have a gross income of $52,000 or less.

This Federal/State e-file allows electronic filing for both the Federal and State income tax returns in one filing. They make use of a software program which places data for Federal and State returns in separate packets but in one envelope when transmitted to the IRS. IRS receives it for the state and in turn forwards it to the state for processing the electronic return.

The benefits of electronic file state taxes are as follows:

• Faster receipt of refund
• Faster processing
• More accurate
• Convenience
• You retain proof of filing

Now, if you’d like to file state taxes directly, you have two options. You can hire a tax professional to complete your tax return forms or you can do it on your own using a tax software program or manually filling up your tax forms.

The problem with completing your own tax form is that you may not be fully aware of the possible deductions and credits that you can claim in your state. Various states have different laws and rates and such a tax professional will be the best resource to find out about it. Tax professionals not only help you file your tax forms. They also help in finding deductions and credits because they are knowledgeable about the tax laws that pertain to your state. They help you in maximizing your tax returns for just around $100 to $150 fee for their service.

What Are Personal Property Taxes?

When most of us think of property taxes, we think of the taxes we pay on our home and the property it’s built on. These taxes can be quite large, depending upon the area of the country in which you live, and the funds generally go to support the local government’s budget. But in most states, you’re paying personal property taxes, too. These are taxes on other large items you own, like automobiles, boats, motorcycles, recreational vehicles, aircraft and utility trailers most notably.

Personal property taxes are assessed by the state where the vehicle or other item is registered. Different states use different methods of collection. For example, in some states, you pay one year’s worth of property tax on a vehicle when you register it, and then each year you’ll pay property tax when you renew your license plate. In some states, all license plates are renewed in January, but in other states the renewal date falls on the birthday of the individual to whom the vehicle is registered, so in those states, personal property taxes are being collected all year long. Some states collect personal property taxes once each year, sending out a tax bill to residents for all their personal property at one time.

The rate charged for personal property taxes also varies by state, but it is generally based on the value of the item registered. With cars and trucks the value used for calculating personal property taxes is generally the NADA blue book value.

In most states, personal property taxes are used to fund the budget of the Department of Motor Vehicles, and possibly other state or local governments. Your personal property taxes may go to help pay the salaries of the DMV workers, as well as for building space, and other supplies.

In most states, the term “personal property taxes” is used to mean the taxes described above. However, in some states, this term is also used to refer to real estate property taxes. However, regardless of the terminology used, in most states, these two types of taxes are different, and the funds are used differently.

Property taxes charged on your home and any other property you own generally funds your county or city government, where the money goes to pay for schools, roads, local government and police and fire support. Many people pay both city and county property taxes. Property taxes paid on vehicles, boats, etc, as listed above, however, generally always fund your state, not your local government.

We can’t avoid paying property taxes, and they’re important for funding the budgets of our state and local areas. But, it’s helpful to know how much you’re paying and exactly where your tax money is going.

What Are Personal Property Taxes?

When most of us think of property taxes, we think of the taxes we pay on our home and the property it’s built on. These taxes can be quite large, depending upon the area of the country in which you live, and the funds generally go to support the local government’s budget. But in most states, you’re paying personal property taxes, too. These are taxes on other large items you own, like automobiles, boats, motorcycles, recreational vehicles, aircraft and utility trailers most notably.

Personal property taxes are assessed by the state where the vehicle or other item is registered. Different states use different methods of collection. For example, in some states, you pay one year’s worth of property tax on a vehicle when you register it, and then each year you’ll pay property tax when you renew your license plate. In some states, all license plates are renewed in January, but in other states the renewal date falls on the birthday of the individual to whom the vehicle is registered, so in those states, personal property taxes are being collected all year long. Some states collect personal property taxes once each year, sending out a tax bill to residents for all their personal property at one time.

The rate charged for personal property taxes also varies by state, but it is generally based on the value of the item registered. With cars and trucks the value used for calculating personal property taxes is generally the NADA blue book value.

In most states, personal property taxes are used to fund the budget of the Department of Motor Vehicles, and possibly other state or local governments. Your personal property taxes may go to help pay the salaries of the DMV workers, as well as for building space, and other supplies.

In most states, the term “personal property taxes” is used to mean the taxes described above. However, in some states, this term is also used to refer to real estate property taxes. However, regardless of the terminology used, in most states, these two types of taxes are different, and the funds are used differently.

Property taxes charged on your home and any other property you own generally funds your county or city government, where the money goes to pay for schools, roads, local government and police and fire support. Many people pay both city and county property taxes. Property taxes paid on vehicles, boats, etc, as listed above, however, generally always fund your state, not your local government.

We can’t avoid paying property taxes, and they’re important for funding the budgets of our state and local areas. But, it’s helpful to know how much you’re paying and exactly where your tax money is going.

Different Ways to do Taxes Online

For many people, they like to change the way they do thingson occasion; even when it come to filing income taxes!

What many people are now learning is that there are several ways to do taxes.  In fact, not only can you file income taxes the old fashioned way, but you can now do taxes online, as well!  In fact, being able to do taxes online is a really great thing for many people!

Just because there are several different ways to do taxes online does not mean that everyone is going to be filing them online!  In fact, many people are still skeptical when it comes to filing their income taxes online!  Many of them still file their taxes through the mail system.

However, even though you can do taxes online, you must still have to decide on which way you are going to file them!  By that, you must decide if you are going to be taking your taxes to a professional or if you are going to be filing them yourself; through your computer.  Even though there is the option of doing them yourself, many people still prefer to have a professional tax agency to file them!  One of the many reasons why people have professionals file them is so that there aren’t any mistakes.  Otherwise people have professional tax agencies do taxes online for them because there is so much paperwork that they, themselves don’t want to mess with!

There are many people that would prefer to do their own taxes than to take it to a professional.  In fact, when filing your own taxes it is saving you money; because you don’t have to pay any service fees to anyone!  However, if you are not careful about the program or website that you use; you may end up paying a service fee!  That’s why it is important that you know they website you’re going into, or investigate the company you’re going to use!

There are many different websites that do taxes online, and for free!  In fact, one of the most known websites is the IRS/Government website.  In fact, on that particular website people are able to calculate their taxes as well as file them!  Also, people may use all the other features that are for the public to use!  Another great websites is TurboTax!  TurboTax is not only an easy website to use, but it is also simple; it gives step-by-step directions!  Almost any one can use TurboTax!

Now that you know you can do taxes online, there is no reason why you don’t!  In fact, on man of the sites they even tell you how to use the download the software as well as use the programs!  It is really quite simple!

How easy it is For People to do Their Own Personal Income Taxes!
Many people think that it is hard for them to do their own personal income taxes.  However, because of the government changing all the forms and books, it is now a very easy process!  In fact, many times people don’t even want to mess around with doing their own personal income taxes, so they will take them to a professional!  Either way, if your personal income taxes get done, it does not matter how they were done!

If you are a working person, every year you will have to do your income taxes; whether you are doing business or personal income taxes.  The deadline to have your taxes done by is April 15th.  However, if you own your own business, if needed you may get an extension.  That will be determined once you do your taxes or if you don’t have all the paperwork you need to fill out the taxes.  However, when doing your own personal income taxes it is a very dry-cut and easy process to do.

When doing your own personal income taxes, the very first thing you need to have are all your W-2’s from your employer.  If you worked a couple different jobs throughout the year, then you will need your W-2 forms from all your employers.  Next, you will have to figure out if you want to do your personal income taxes yourself or if you want to take them to a professional.  However, you must realize that if you go to a professional it will cost money.  Not only will it cost money, but they charge a flat fee and the go up per how many forms they have to use and fill out.  When you do your own income taxes, they are free and you can also do them in a couple different ways.

If you choose to do your own personal income taxes by yourself, then you will have to choose how you want to do them; there are a couple different options.  First, you can use the income tax book you get sent to you through the mail or that you can get from any state building; then send it through the mail once completed.  Secondly, you can purchase a tax program that you can put on your computer that allows you to put your information on the forms they have for you and then mail them in.  Lastly, you can go on websites or use programs that allow you to e-file (electronic file) your income taxes.

If you choose to e-file your income taxes, it is a for-sure way of getting your taxes to the government quickly and accurately.  Also, there is a perk of getting your refund (if any) much quicker than if you were to put your taxes through the mail!  Not matter which way you do your income taxes it is a fairly easy process to learn!

How Stressful is it Really When Doing Individual Income Taxes?
Most often when people are about to file their taxes, for some reason they tend to get either very stressful or upset.  However, most people find that doing their own individual income taxes is by far the easiest of all taxes.

When people do their own individual income taxes, one of the reasons why so many people end up getting very stressed out and high strung is because they fear that they will have to end up paying money back into the state or government.

However, the easiest way for many people to reduce the stress from filing individual income taxes is by having all the paperwork needed, and where it will be handy.  One reason why many people are stressed out about filing their individual income taxes is because they are not well organized, and unable to find everything they need!  However, usually when people file individual income taxes all they need are their W-2 forms that they get from their employers.  So then, it is an easy process for themselves or the professional that is doing the taxes! 

When filling out all the paperwork on the taxes, you will then be able to see all the different kinds of exemptions that are possible for people to receive.  However, the amounts of the exemptions vary from state to state.  For instance, if you lived in Ohio you would be able to receive $1,400 per person as an exemption.  Also, in order to get an exemption you must be qualified for it!

If you are having problems with filing your individual income taxes, then do what many other people do!  You can either get help from other individuals such as family and friends, or you may purchase a book or movie about filing taxes!  Otherwise, another easy way of doing your taxes is to take them to a professional such as H&R Block!

When filing individual income taxes, one of the most important things that must be considered is which way you will want to file the taxes.  In most cases, because it is the easiest, people are choosing to e-file their taxes.  E-filing is a way of filing your taxes over the computer through the internet, which is a very safe way!  However, there are some people that do not trust the computer or the internet, and choose to keep filing by filling out all the books and paperwork and then sending them through the mail.  Which ever way you choose is a very safe way.  However, if you choose to send it through the mail you are taking the chance of them getting “lost” in the mail system!

There are many different ways of filing your taxes; it’s all a matter of if you want to be stressed out or not!

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Do I Still Pay Taxes on Social Security Income?

Most often when people are disabled, they end up receiving social security.  What scares people the most is they wonder how they can afford to live while paying taxes on social security income; or if they even have to pay taxes on social security income.

For many people, the question “Do I still pay taxes on social security income” is one of the most asked questions.  It may not be for them, possibly a spouse, sibling, or parent; but it is still on their minds.  The answer; is both yes and no.

Most people when they collect a social security income, they are retired.  However, because people are living much longer than those in the past, are also working longer.  Therefore, many times when people hit retiring age, they are still working.  So, they choose to keep working and collect the social security income at the same time.  So, if you continue to work as well as collect social security income, yes, you will have to pay taxes on social security income.  Therefore, the only time you wouldn’t have to pay taxes on social security income is if that was the only income you had coming in!

When it comes to paying taxes on social security income, all within the last 15-20 years did the laws change.  In fact, in 1983 is when the law changed stating that retirees with an annual income above the limit must pay taxes on social security income.  When a person makes $25,000-$34,000, they may have to pay 50% of their benefits to taxes; and so on; going by what they make. However, the most taxes a person will have to pay in their social security income are 85% taxes. 

Also, in 2005 the Social Security Administration had changed the social security income again.  It was changed so that taxes will only be taken out of a workers wage for on the first $90,000.  There after, no more social security will be taken out, and everyone will be paying the same amount of taxes for their social security income.

So, if you are a person that is thinking about collecting your social security income, the most beneficial thing for yourself to do is to retire completely.  Then once you’re completely retired, start collecting your social security income.  If you retire first, then you will not have to pay taxes on social security income!  Whereas if you collected them while working, you will be paying taxes on both incomes coming in!!

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When it’s Time to do Your Income Taxes.
For many people, they usually start doing their income taxes as soon as they get their W-2’s back from their employers.  However, there are some that like to wait until the deadline; which in most states if not all of them, is April 15th. 

Many times when people procrastinate in doing their income taxes; that usually means that they will end up paying back into the state or that they will break even.  By that, they will not end up getting a refund of any sort because they did not pay in enough taxes to what they grossed for that years income.  Where as those that files their income taxes right away, they will usually end up getting a refund of some sort!  Most often when a family does not gross a lot of money, their income tax returns will be fairly high. 

When filing your state and federal income taxes, the very most important thing that you will need to have are all you W-2’s, if you are not self-employed.  However, if you are self-employed you will need all of your 10-99 forms or any other forms you have.  Along with having the forms, you will need to send copies into the state with the tax forms you need to fill out.  Secondly, you will need the income tax forms themselves.  In most cases, the government will send you the booklet provide you e-filed the previous year.  If you did not, then you will have to go to a public/state building that will have the booklets.  The easiest way though, is to e-file your income taxes.  When you e-file, you are filing your income taxes over the computer through the internet.  Then, all you will have to do is sign a form that gets printed out and mail that with your W-2 that you got from your employer!

One important thing that everyone should know when filing your income taxes, is to make sure that you have them filed by the due date.  In most states, the due date to have the income taxes done by is April 15th.  If you are self-employed or under other circumstances; need an extension you may file for one.  If you are granted an extension, you will have until November 15th to have your income taxes filed.  Many times when people have a lot of W-2 forms or other forms, they will end up having a professional file their taxes for them; especially those that are self-employed! 

When filing your state and federal income taxes, it is a fairly easy thing to do.  However, if you do not know what you are doing then it may be difficult and possibly end up making a huge mistake!  Therefore, if you are in doubt of doing your taxes-don’t do them; ask for help or hire someone to do them for you!!!

Tax professionals are the first to tell you that the best way to not pay taxes is to plan not to pay taxes.  Start planning on January 1st (or wherever you are right now) on ways that you can save your taxes.  This includes everything from planning your expenses properly to keeping those receipts handy.  Many find that the best way to do this is through a tax professional that can work side by side with your business.
What’s more, if you personally stay up to date on what is considered a deduction or the new taxes that head to Congress every year, then you can make better decisions for your business every day.  The best way to do that is simply by picking up the finance section of the paper and reading it.  It can be that simple to reduce your taxes significantly.

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