Tuesday, March 19, 2024

How To Pay Your State Taxes

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Owe State Taxes Here Are Your Payment Options

How to Pay Your Taxes
  • Current: Owe State Taxes? Here Are Your Payment Options

Youve completed your Indiana individual income tax return and it looks like youre going to owe additional taxes. What do you do now? Here are a few options for making payments to DOR:

OPTION 1: Pay the full amount due online via INTIME prior to tax deadline

The best option is to pay the entire amount due via INTIME, DORs new e-services portal at intime.dor.in.gov, prior to the April 18, 2022, tax deadline. You can do this securely without signing in or signing up for access to your INTIME account by selecting the Make a Payment link on the homepage.

Next, go to the Non-bill payments panel to pay taxes owed on a return and select the preferred payment method. INTIME accepts electronic bank payments and Visa or Mastercard credit or debit card payments. More information on making non-logged-in bill payments is available in this .NOTE: There is no fee for electronic bank payments, although credit and debit cards have applicable fees.

TIP: When prompted to enter the payment type, select Return Payment, and for the current tax season, select the , option.

OPTION 2: Set up a payment plan via INTIME

If you havent signed up for INTIME yet, .

OPTION 3: Pay electronically via tax software or tax service

OPTION 4: Mail in your payment

If including payment of taxes owed when mailing your Indiana income tax return, print your SSN and tax year on the check or money order. Mail your return and payment to:

Be On Alert For Identity Thieves During Tax Season

Phoenix, AZIdentity theft occurs year-round but the Arizona Department of Revenue advises taxpayers to be on heightened alert during tax season. Combating tax fraud is a high priority for the Department and works continuously to enact safeguards to protect the public from identity thieves and scammers.

Pass Down Appreciated Assets

When someone passes away, there is a step-up in the cost basis of their assets. This means that the heirs that receive stocks, bonds, real estate and other assets do not owe capital gains taxes if they sell the assets right away. If the assets continue to appreciate after the investors death, the beneficiaries will only owe taxes on the appreciation that occurred after their date of death.

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How To Avoid Capital Gains Tax On Stocks

Capital gains taxes are a tax on the profits you make on investments, which you might owe if you are investing through a taxable brokerage account. The good news is that there are strategies investors can use to eliminate or minimize those taxes. The right ways for you will depend on your long-term financial goals. If youre not sure what path to take to avoid taxes you can work with a professional financial advisor who can help you create a financial plan and provide the right ways to avoid these taxes.

Stop And Start Dates For Overpayment Interest

How High Are Income Tax Rates in Your State?

In general, we pay interest on the amount you overpay starting from the later of the:

  • Tax return filing due date
  • Late filed tax return received date
  • Date we get your return in a format we can process
  • Date the payment was made

We stop paying interest on overpayments on the date we refund your overpayment or offset it to an outstanding liability.

Exception: We have administrative time to issue your refund without paying interest on it.

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Online By Debit Or Credit Card

You can pay the IRS by credit or debit card, but you must use one of the approved payment processors. Three processors are available. You can access any of them on the IRS website or through the IRS2Go mobile app:

They all charge a processing fee, which can vary, but this fee might be tax-deductible, depending on your tax situation. Its usually a flat fee for a debit card transaction or a small percentage of your payment if youre using a credit card. Your credit card company might charge you interest as well.

You cant cancel payments using the credit card or debit card option.

Invest In An Opportunity Zone

The Tax Cuts and Jobs Act created opportunity zones that offer tax advantages to investors. By investing in eligible low-income and distressed communities, you can defer taxes and potentially avoid capital gains tax on stocks altogether. To qualify, you must invest unrealized gains within 180 days of a stock sale into an eligible opportunity fund, then hold the investment for at least 10 years.

Recommended Reading: How Much Tax Will I Pay On 15000 Self Employed

When Do You Pay Property Taxes

You generally pay property taxes once a year. The specific date depends on the municipality in which you live. For example, in Toronto, property taxes are due on the last business day of February.

Property taxes are used by local governments to fund their operations. The taxing authority may sell your home if you fail to pay property taxes if you do not pay your property taxes, the taxing authority has the authority to do so. If you are a mortgagee, your lender may have to pay taxes and then bill you. If you fail to reimburse the mortgage lender, your home may be seized. Because you dont have one, you no longer have access to property taxes when you pay off your mortgage. Property taxes are now due directly to your local government. The amount of property tax you must pay varies depending on where you live. If you are delinquent in your property taxes, you should take steps now rather than waiting until the end of the year. It is critical to keep both your mortgage and your property taxes in check when you are behind on your mortgage payments because you may not be able to make up the difference.

How Do I Find My Tax Return Number

How To Pay Your Property Taxes Online

When you file your taxes, your employer will send you a Form W-2, which gives you a breakdown of your earnings. If you get paid in cash, you should have a record of that. If you receive a check, you should have access to your bank statement to determine how much you received. Either way, you should have a record of your earnings.

That information is then entered into an IRS database, generating a tax return number for you. This tax return number is a unique number you use to submit your tax return electronically. Your employer will never see your social security number, so this tax return number is used instead.

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How Often Do You Pay Property Tax In Edmonton

If you have a property tax in the City of Edmonton, you can pay it monthly rather than annually through the Property Tax Monthly Payment Plan.

Province With The Lowest Property Taxes In Canada: British Columbia

A property tax is a significant financial burden for homeowners, especially if they are unable to pay it on time. Alberta property owners have a limited time period in which to pay their taxes late. A property is no longer eligible for tax recovery if it has not been paid in full in arrears for more than one year. As a result, the owner must pay taxes in full, which can be quite expensive. Property taxes are the lowest in British Columbia. As a result, if youre looking for the lowest property tax in Canada, this province might be the place to look.

How To Pay Quarterly Taxes: 2022 Tax Guide

From flexible work hours to not reporting to a boss, being self-employed comes with a lot of perks. However, with the freedom of working for yourself also comes responsibilities such as paying quarterly taxes. Heres a checklist and basic steps to pay quarterly taxes in 2022. If you need more help with taxes, consider working with a financial advisor.

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You Might Owe State Taxes On Student Loan Debt Relief

Depending on what state you live in, your forgiven student loans might be taxed as income. Why? Because as youre reading this, a handful of states are still on track to count canceled student loan debt as taxable income since they havent updated their laws to match federal law .

According to the latest analysis from the Tax Foundation, here are seven states that might tax your student loan debt relief if it ever comes:

So, how much could you owe on your state tax bill thanks to student loan forgiveness? It depends, because each state taxes income differently. But if you receive the max amount of debt relief from Bidens plan, you could be looking at an extra $5001,570 on your state tax bill sometime soon.

But hold your horses. While these states might go ahead and tax student loan forgiveness, theres still a chance for policy changes at the state level. To explain how all this stuff works, its time for a quick civics lesson on the relationship between federal and state tax. Hang with us here!

You see, some states automatically update their tax legislation to match federal laws whenever they changethis is called rolling conformity, and folks in those states probably wont have to pay state income tax on their student loan forgiveness either.

But those other five states we listed above? Theyll need to update their laws soon if they want to exclude student loan debt relief from being counted as taxable income. Stay tuned!

What Are The Penalties If I Don’t Pay My Estimated Taxes

How Are Your Stateâs Roads Funded?

It’s a good idea to post a calendar reminder as the quarterly deadline approaches to avoid paying a late penalty. You may be charged a penalty if:

  • If you owe more than $1,000 in taxes after subtracting withholdings and credits.
  • If you paid less than 90% of the tax for the current year through estimated taxes.

The penalty could be waived in some situations. If you want to delve further into estimated tax penalties and conditions of a waiver, see the instructions in IRS form 2210.

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Estimated Tax Payments Are Due Tomorrow Here’s How To File

Sarah Szczypinski

Staff Writer

Sarah is a staff writer at CNET, covering personal finance. She previously contributed stories about money, health, and parenting to The New York Times, The Seattle Times, and The Washington Post. She once bought a car on eBay.

Dan Avery

Writer

Dan is a writer on CNET’s How-To team. His byline has appeared in Newsweek, NBC News, The New York Times, Architectural Digest, The Daily Mail and elsewhere. He is a crossword junkie and is interested in the intersection of tech and marginalized communities.

Courtney Johnston

Editor

Courtney Johnston is an editor for CNET Money, where she manages the team’s editorial calendar, and focuses on taxes, student debt and loans. Passionate about financial literacy and inclusion, she has prior experience as a freelance journalist covering investing, policy and real estate. A New Jersey native, she currently resides in Indianapolis, but continues to pine for East Coast pizza and bagels.

What’s happening

Self-employed workers and freelancers don’t have taxes withheld, so they’re required to pay estimated tax payments throughout the year.

Why it matters

Paying quarterly estimated taxes can help you avoid penalties — and a huge tax bill — when filing your return with the IRS.

What’s next

The next estimated quarterly tax due date is Sept. 15, 2022.

Where Do I Mail My Tax Payments In Response To A Notice Of Tax Interest And Penalties Due

If you received a notice of tax due, mail your payment and the payment coupon to LDR in the reply envelope. Using the payment coupon and reply envelopes ensures that your payment will be properly processed and credited.

Individual income tax liabilities may be paid electronically by an electronic bank account debit using the Louisiana File Online application or by credit card using Official Payments. Credit card payments may also be initiated by telephone at 1-888-272-9829. Credit card payments incur a 2.49 percent convenience fee.

Business tax liabilities may be paid electronically using the Louisiana Taxpayer Access Point system or by credit card using Official Payments. Credit card payments may also be initiated by telephone at 1-888-272-9829. Credit card payments incur a 2.49 percent convenience fee.

Read Also: Where To Find Real Estate Taxes Paid

How Do I Calculate Estimated Tax Payments

There are a few ways to calculate your quarterly tax payments depending on your business model and annual earnings.

  • If you earn a steady income, estimate the tax you’ll owe for the year and send one-fourth to the IRS each quarter. For instance, let’s say you’ll earn $80,000, which places you in the 22% marginal tax bracket. You’ll owe $17,600 in federal taxes or $4,400 each quarter in 2022.
  • If your income varies throughout the year, you can estimate your tax burden based on your income and deductions in the previous quarter. The IRS Estimated Tax Worksheet can help you do the math.

If you’ve overestimated your earnings at the end of the year, you can complete a 1040-ES form to receive a refund or apply your overpayment to future quarterly taxes. If you underpaid, the form can help you calculate what you still owe.

How Do You Pay California Taxes

State benefits and your online tax return

To pay California state taxes, follow these steps:

  • Navigate to the website State of California Franchise Tax Board website.
  • Choose the payment method. Your payment options include drawing from your bank account, credit card, check, money order, or electronic funds withdrawal. You can also set up a payment plan.
  • E-filing your California state return gets you the fastest refund and reduces errors. H& R Block tax software will choose the right state form for you.

    Residents should file either:

    Part-year residents and non-residents should file Form 540NR.

    Read Also: How To File Ohio State Taxes For Free

    When Are Estimated Taxes Due

    Estimated taxes are paid quarterly, usually on the 15th day of April, June, September and January of the following year. One notable exception is if the 15th falls on a legal holiday or a weekend. In those cases, you must file your return by the next workday.

    The deadlines for 2022 estimated taxes are in the table below.

    Recommended Reading: Where Can I Cash My Tax Refund Check

    Coronavirus Tax Relief For Self

    Coronavirus Aid, Relief, and Economic Security Act permits self-employed individuals making estimated tax payments to defer the payment of 50% of the social security tax on net earnings from self-employment imposed for the period beginning on March 27, 2020 and ending December 31, 2020. This means that 50% of the social security tax imposed on net earnings from self-employment earned during the period beginning on March 27, 2020, and ending December 31, 2020, is not used to calculate the installments of estimated tax due. Please refer to Publication 505, Tax Withholding and Estimated TaxPDF, for additional information.

    Also Check: When You File Taxes Is It For The Previous Year

    Expanded Penalty Waiver Available If 2018 Tax Withholding And Estimated Tax Payments Fell Short Refund Available For Those Who Already Paid 2018 Underpayment Penalty

    The IRS lowered to 80 percent the threshold required for certain taxpayers to qualify for estimated tax penalty relief if their federal income tax withholding and estimated tax payments fell short of their total tax liability in 2018. In general, taxpayers must pay at least 90 percent of their tax bill during the year to avoid an underpayment penalty when they file. On January 16, 2019, the IRS lowered the underpayment threshold to 85 percent and on March 22, 2019, the IRS lowered it to 80 percent for tax year 2018.

    This additional expanded penalty relief for tax year 2018 means that the IRS is waiving the estimated tax penalty for any taxpayer who paid at least 80 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two.

    Taxpayers who have not filed yet should file electronically. The tax software was updated and uses the new underpayment threshold and will determine the amount of taxes owed and any penalties or waivers that apply. This penalty relief is also included in the revision of the instructions for Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts.

    What Are Estimated Taxes

    State Gasoline Tax Rates in 2017

    If you earn or receive income that isn’t subject to federal withholding taxes throughout the year — side hustle earnings or income from a rental property, for example — you’ll pay as you go with estimated taxes. Estimated tax is a quarterly payment based on your income for the period. Essentially, estimated tax allows you to prepay a portion of your income tax every few months to avoid paying a lump sum on Tax Day.

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    Do I Also Have To Pay Estimated State Taxes

    It depends. If you live in one of the few US states with no income tax, your responsibility ends with the estimated federal taxes we’ve discussed. However, if your state does levy income taxes, you will make estimated tax payments using the same deadlines for federal taxes. Visit your state’s department of revenue website or consult your tax adviser or tax software service for more personalized information.

    Why The Government Requires Quarterly Estimated Tax Payments

    Before outlining how to pay quarterly taxes, you must first understand who owes quarterly taxes and why the IRS requires them. The U.S. tax system uses a pay-as-you-go income tax system. With this type of system, taxpayers pay taxes as they earn income. Therefore, the government can tax W-2 employees with withholdings and self-employed individuals with quarterly tax payments. If you work for yourself as an independent contractor or freelancer, your taxes typically are not automatically taken from your paychecks. Therefore, the IRS collects income taxes with quarterly tax payments.

    To determine if a taxpayer must make quarterly tax payments, they follow several guidelines.

    • You anticipate owing more than $1,000 when filing your return for 2022
    • You anticipate the withholding and tax credits will be less than 90% of your estimated tax liability for 2022 or 100% of your 2021 year tax liability .

    If your adjusted gross income exceeds $150,000 $75,000 if youre married and file separately the requirement is 110%. Farmers and fishermen are an exception to this requirement. If youre in either of these professions and earn at least 66.6% of your income from the trades, you only need to pay a corresponding amount of the tax liability.

    While paying your quarterly tax estimates seems like a pain, it can help you avoid a big tax bill during tax time. In addition, paying quarterly taxes makes your tax payment more manageable throughout the year.

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