In 21 states and the District of Columbia, you may owe estate and inheritance taxes to the state even if you don't have to pay the federal government.
| Tags: | estate taxstate taxtaxes |
You get an extra 2 days to do your taxes this year, but you may not have the option of the late-night run to the post office.
Most state tax returns are due April 17, but a few states have later deadlines. States collected 9.8% more in individual income taxes last year and 9.4% more in corporate income taxes.
States are competing to provide the best tax environment for retirees. But that generosity could cost all the taxpayers later.
The IRS lets you deduct either state income tax or state sales tax from your federal taxes. Most people deduct income tax, but there are times that sales tax is a better choice.
Depending on your employment status, you may be able to deduct up to 100% of your premiums on your federal tax return. Some states also give deductions or credits.
Governors want to cut or eliminate income tax, but the challenge is figuring out how to make up lost revenue at a time when state budgets are already suffering.
Property owners in Detroit are avoiding taxes by letting their homes and businesses go into foreclosure for unpaid taxes and then buying them back for $500.
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