State and Local Taxes 101
This playbook provides an overview of state and local tax systems. It outlines the essentials of filing and paying these taxes as additional responsibilities alongside federal obligations.
Step 1: Research
Determine your state and local tax requirements based on your residence, employment, and other relevant factors.
Step 2: Documentation
Gather all necessary documents related to income, property, sales tax, and other applicable taxes.
Step 3: Filing
Complete the appropriate state and local tax forms, ensuring accuracy and compliance with the current tax laws.
Step 4: Payments
Calculate the total tax liability and make payments by the due date, which may vary by state and locality.
Step 5: Records
Keep copies of all tax filings and proof of payment for at least the minimum period required by law.
General Notes
Tax Software
Consider using tax software or a tax professional to help navigate state and local tax laws, especially if you have complex tax situations.
Deadlines
Be aware that state and local tax deadlines may not align with federal tax deadlines. Check the dates annually to avoid penalties.
Updates
Stay informed about changes in tax law that may affect state and local tax rates, deductions, and credits.
Assistance
Most states offer taxpayer assistance services, which can provide help or answer questions about state tax obligations.