Tax Guru – Ker$tetter Letter

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Archive for the ‘StateTaxes’ Category

Moving Van Tax Savings…

Posted by taxguru on April 8, 2015

The kind of story that gives me some hope that not everyone agrees to just bend over, grab their ankles and let the States continue to fiscally rape them.

Report: People Fleeing High-Tax States for Low-Tax Alternatives

You can download the actual 58 page pdf of the full report mentioned in the above article here, Rich States, Poor States.”

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Posted in StateTaxes | Comments Off on Moving Van Tax Savings…

TurboTax Fraud

Posted by taxguru on February 6, 2015

I’ve always made it very clear that I think trying to prepare your own tax returns is crazy, even when software companies such as Intuit make the idiotic claim that their DIY programs can replace experienced tax preparers.  I was always referring to legitimate tax returns.  It now appears that crooks have been successful at using TurboTax to file phony tax returns.  The bad guys have been so successful that Intuit has had to shut down their e-filing for all State income tax returns.

TurboTax halts state filings amid fraud outbreak  – from USA Today
Intuit Working With State Governments to Solve Emerging Tax Fraud Problem – from the TurboTax blog

Update: Arkansas DFA has just released this press release regarding this issue.  Basically, it acknowledges the issue, but claims that they are not aware of it happening yet in Arkansas.  However, as a precaution, they will be closely examining the 7,500 TurboTax refund requests that have already been processed for 2014.  Considering that the MO of the crooks has been to file fake returns early in the season and thus freeze out the actual taxpayers, I am betting that the DFA will be discovering several fraudulent refund claims in that batch.

Update 2: Snopes.com addresses this story: TurboTaxed 

Update 3: Minnesota Isn’t Taking Any More TurboTax Returns

Posted in Crooks, StateTaxes, Turbotax | Comments Off on TurboTax Fraud

State Taxes Can Influence Business Locations

Posted by taxguru on October 28, 2014

The Tax Foundation has released its 2015 State Business Tax Climate Index:

Their announcement and summary

The full 76 page pdf.

From the Executive Summary:

The 10 best states in this year’s Index are:

1. Wyoming
2. South Dakota
3. Nevada
4. Alaska
5. Florida
6. Montana
7. New Hampshire
8. Indiana
9. Utah
10. Texas

 

The 10 lowest ranked, or worst, states in this year’s Index are:

41. Iowa
42. Connecticut
43. Wisconsin
44. Ohio
45. Rhode Island
46. Vermont
47. Minnesota
48. California
49. New York
50. New Jersey

 

 

Posted in StateTaxes | Comments Off on State Taxes Can Influence Business Locations

More Tax Refugees on the move

Posted by taxguru on March 6, 2014

It’s always great to see when people reach their breaking point after being fiscally raped by the DemonRats, who have never been able to grasp the moral of Aesop’s Goose That Laid the Golden Egg fable.  In these East Coast cases, the most popular destination is down here in Florida.  The excellent weather is just an added bonus to the tax savings.

About $5.5 billion left NJ in ‘tax migration,’ study finds

De Blasio’s anti-rich policies are driving wealthy people out of NYC

 

Posted in SoakTheRich, StateTaxes | Comments Off on More Tax Refugees on the move

Worst Tax States

Posted by taxguru on January 29, 2014

For those considering relocating, The Fiscal Times has this interesting slide show of what they have ranked as the ten worst tax states for 2014, along with details on their tax rates. 

They are:

1.  New York

2.  New Jersey

3.  California

4.  Minnesota

5.  Rhode Island

6.  Vermont

7.  North Carolina

8.  Wisconsin

9.  Connecticut

10.  Maryland

 

TaxCoach Software: Are you giving your clients what they really want?

 

Posted in StateTaxes | Comments Off on Worst Tax States

Super Taxes

Posted by taxguru on January 28, 2014

New Jersey Taxes Could Eat Up All Of Peyton Manning’s Super Bowl Earnings – Holding the game in the highest tax state in the country will cost all of the players a lot of extra taxes compared to what they would be if the game were played down here in Florida. The much nicer weather down here would be an added bonus for everyone.

 

Posted in StateTaxes | Comments Off on Super Taxes

Business-Friendly vs Hostile States

Posted by taxguru on October 10, 2013

Interesting report from the Tax Foundation as to the relative business tax climate of the various States in this country. 

Ranked from 1 as the most business friendly to 50 as the worst place to conduct business, the winners and losers are:

Top 10

  1. Wyoming
  2. South Dakota
  3. Nevada
  4. Alaska
  5. Florida
  6. Washington
  7. Montana
  8. New Hampshire
  9. Utah
  10. Indiana

 

Bottom 10

  1. Maryland
  2. Connecticut
  3. Wisconsin
  4. North Carolina
  5. Vermont
  6. Rhode Island
  7. Minnesota
  8. California
  9. New Jersey
  10. New York

 

Their summary of the report:  2014 State Business Tax Climate Index

The full report : 56 page pdf

Washington Posts’s article about this report: Western U.S. best for business, Tax Foundation says

 

 

TaxCoach Software: Are you giving your clients what they really want?

 

Posted in StateTaxes | Comments Off on Business-Friendly vs Hostile States

Tax Refugees

Posted by taxguru on September 15, 2013

Excellent look at how much wealth has moved from high tax states to low and zero income tax states, a real life strategy I have been working with people on for decades. It’s always heartening to see where people refuse to just bend over and let their States fiscally rape them.

 

 

Posted in StateTaxes, video | Comments Off on Tax Refugees

Multi-State Taxes

Posted by taxguru on July 13, 2013

Q:

Hello Kerry,

I was in full time Real Estate and you came and done a Tax Seminar on Tax Free Exchanges. I still have me Real Estate License, but work full time now as Industrial Lumber Salesman for a company that is based out of  Texas. My question is this I live in  Arkansas and I was hired to be a salesman for the Oklahoma plant. I have an office at the plant and chose to work there most of the time, but I could work from home or really anywhere I have a phone and a computer.  My dilemma is this our company is not set up to do Arkansas State Tax withholdings, and do not want to get set up because they are concerned about being subject to additional franchise taxes.

My problem is they are paying all my State Tax to Oklahoma, and I get about a $50.00 refund from Oklahoma and owe Arkansas about $2000.00 in state tax every year. I do not think I have should have to pay state tax in 2 states, and would like to know if there is a legal way out of paying state tax in 2 states. If nothing else could I set up a checking account in Texas for my check to be Direct Deposit to and then transfer the money to a local account online.?

Please Advise…

Thanks,

 

A:

There is a mechanism for dealing with your situation that you and your professional tax preparer appear to be overlooking.

If your employer is treating you as an OK employee, you need to file a non-resident OK tax return.

When you file your AR tax return, you are supposed to report all income, including the OK wages.  However, to prevent paying two state income taxes on the same OK income, you are allowed to claim a tax credit on the AR return for the income tax that you had to pay to the State of OK.  To document this, you need to attach a copy of the OK tax return to your AR return.

Your professional preparer should have know this because it is a very common situation with people working across state lines.

It looks like it would actually be worth filing amended AR tax returns for the past three years to claim the credit for the OK taxes paid.  Any tax return older than three years can’t be amended.

Good luck.  I hope this helps.

Kerry Kerstetter

 

Follow-Up:

Kerry,

I appreciate your advise, let me ask are you taking on any new clients. I would be interested in having you do my taxes.

Thanks,

Beginners QuickBooks 2013 Training Videos

 

 

Posted in StateTaxes | Comments Off on Multi-State Taxes

Posted by taxguru on January 15, 2013

 

Louisiana isn’t the only GOP controlled State considering replacing income taxes with increased sales (consumption) taxes.

Nebraska governor is latest to propose ending state income tax

U.S. states flirt with major tax changes 

 

New pay-per-mile scheme would boost taxes 250 percent  –  Another plan to compensate for the consequences of more fuel efficient vehicles.

 

 

Posted in StateTaxes, TaxNews | Comments Off on

 
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