Well, I just finished filing my tax return this year. Military onesource is once again offering free online tax services, this year through H&R block. Just thought I would point that out for anyone who wasn't aware of it.
and don't forget the "Sales tax" part. It did not automatically bring me there. It is under "state taxes paid" on your federal return. A lot of people who file in FL or TX forget to deduct them. If you bought a car or other big ticket items, it can help.. Got me about $300 less in what I owe. BTW, having married witholding, but filing single = BIG bill.
AND ... Alaska, Nevada, South Dakota, Washington, Texas, and Wyoming ... live free or die. I wish ...
I'd rather they have an income and sales tax in AK. They make up for it by raping me in property taxes.
Not if you're a CA state resident... even if I did get the dividend check it'd only cover about 1/3 of my property taxes
I think you're dead wrong ... I used to be based in Anchorage and looked into it when I was deciding whether to buy or rent ... and the tax structure (overall, based on total personal income) ranged from 1.3% - 2.5 % for property taxes and from .02% - 2.4% for sales & excise taxes of all kinds on individuals during the period(s) 1989-2002. PLUS ... no personal income tax for individuals. Sounds a hell of a lot better than MY property taxes --- coupled with the high state & local sales taxes AND the legislature's perpetual panting and gasping over the prospect(s) of enacting a personal income tax. Remember ... politicians NEVER take a tax away ... they just change it's face and swap it for something else. (sources: Alaska Tax Division, US Census, Institute on Taxation and Economic Policy)
If AK had income tax it wouldn't affect me being a CA resident, and here the city appraises your property annually then taxes you based on it. Two years ago they had it at $183k, now it's $236k.
Don't be too sure ... unless there's a special "exemption" for USGI's ??? Something akin to the Soldiers' and Sailors' Relief Act ??? Our pilots -- California, Minnesota, Michigan, and Hawaii based were all tapped for state personal income taxes - even some commuters who only maintained a commuter apartment -- no matter where their "home of record". I know of the case of a Navy Chief and an Officer who got slapped with tens of thousands in back taxes from Hawaii when they retired in the islands --- they had each been stationed there but claimed residency elsewhere ... then they pulled the plug and retired in the Islands. The Hawaii deptartment of revenue was not impressed ....
CA tax rules say active duty CA residents are exempt from state taxes unless stationed in CA. "Home of record" does not necessarily mean state of residency. You can almost change your residency at will, but HOR (where you initially entered active duty) remains the same.
As a FL resident, what do you do put in that block? I've always used VITA on base, therefore, I guess they have always filled that in for me. How do you claim that? It is always good to learn about things that will reduce what I owe. Thanks ahead of time MB!
Funny, you use that. New Hampshire is another income free and sales tax free state. Folks say the property taxes are high but up there on vacation last summer I stopped in a realitor to look and houses that were the same value as my place in MD had taxes about 30% lower.
There is a table for local/state sales tax, how much you are allowed to claim, based on your income and local tax rate. I can claim about 1200 in sales tax paid based off the table. Dont forget to add the local rate to the state rate if applicable. You can either claim ALL tax paid if you save your reciepts for everything, or the amount based off the tables, plus "big ticket" items. Since I do a lot of shopping at the NEX, and don't save every reciept, I claimed the table, plus about another 1000 in sales tax between the sales tax on my pickup I paid $10,500 for, and a $3000 washer/dryer set.
Also, I tried to used VITA once, and they dorked up my return. If you are a single E-4 living in an apartment just claiming your basic exemption, and tax free, they are fine. If you have a "complcated" return, as in you are itemizing more than your mortgage, they are no tso good. Remember you can write off: Sales Taxes State Taxes Registration fees based off value Property Taxes Mortage Interest Student loan interest (only the first $2500 ) Alimony/Spousal Support I suggest reviewing EVERY slide in the online tax programs.. The "interview" skipped the sales tax, becasuse I live in FL so it skipped over local/state taxes paid. That was worth about $300.
Here is an additional refund for most of you reading this, if you do not already know about it: http://www.irs.gov/newsroom/article/0,,id=161506,00.html It deals with federal excise tax refund on telephones. It is not much, unless you have about 41 months of phone bills saved. Either way, $30-$60 extra refund is always nice.
Just did it.. Waiting until Monday to file, because it does not have the Sales Tax tables ready yet. Don't forget "table plus big ticket" for Sales Tax usually works out best for Military, especially if you do a lot of shopping on base.
Don't forget that since you are required to have a recall #, your cell phone. And if you invest at all.....your computer is depreciable and your internet access deductible.
Ooh, forgot that.. I'll be adding it as well. Does TSP count as investing? I use my laptop to access it via PumaNet.. Can I write off my Cell phone if its my only phone? I need internet for work, as its how we check the flight sked and weather.
TSP is investing. You can write off your cell. And you need the net for work. Don't forget haircuts, and meals and hotels while on out-and-in + x-country.
