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Idaho State Taxes Article
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Information about State Income Taxes
from:What are State Income Taxes?
State income taxes are taxes levied from the income of each individual resident of the state. States are independent from one another in their taxing authority and all state tax forms differ in some ways. Forms for these taxes usually start with federal taxable income or with federal adjusted gross. State income taxes are on top of the federal income tax which currently tops out at 35%. As of 2006, the highest rate of state income tax is that of Vermont, with a maximum rate of 9.5%. Of all states that are imposing state income taxes, the lowest maximum rate is that of Illinois, which levies a flat tax rate of 3%.
Some states do not impose state income taxes:
Some states choose not to impose income tax. These states include Alaska (people who are living in this state actually get paid for living there), Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Additionally, New Hampshire and Tennessee limit their state income taxes to dividends and interest income only. If you live or work in one of these states, you will owe state income taxes even though your income is exempted from federal income tax by a treaty.
Some states exempt people who have small amount of income, who are in the military or who are in a state that does not have an income tax at all.
If your home is located in a tax state but you are working in a tax-free state, no tax is withheld for the tax-free state, but you have a tax liability to your home state for your income. To avoid owing money at tax time, you should request that state tax for your home state be withheld.
Where should we file state income tax return?
Every state has a provision called "source income." They all want to tax any income earned in their states, regardless of your tax home status, state residency, or citizenship. Normally, people will have to file state income tax return in the state where they earn income.
Figuring out the state filing requirements can be complicated if you are earning income in more than one state. If you have worked in more than one state, you will probably have to file a part-year return with each state.
Where to get forms?
Presently, all the states have websites from which you can download the forms that you need for filing state income taxes. If you work in Minnesota, you will find tax forms at the Minnesota Department of Revenue website. You can also find links to all state revenue department home pages at the U.S. Treasury's State Links page.
Idaho State Taxes News
Idaho leaders convene in Payette (Argus Observer)
PAYETTE — Working out the 2009 to 2010 Idaho state budget will be a key theme for state legislators when they convene this month and it was one of the main topics addressed by Idaho District 9 legislators at a town hall meeting at Payette County Courthouse Tuesday.
Read more...The wrong people pay for Schwarzenegger's busted budget (Los Angeles Times)
The state's wealthiest residents would make out just fine under his plan to cut services, hike taxes. The Schwarzenegger administration , which was launched via an electoral campaign of majestic hypocrisy in 2003, has finally fulfilled all the heady promise of those distant days of the Gray Davis recall.
Read more...States mulling tax on mileage (Parkersburg News and Sentinel)
PARKERSBURG - As the country begins the shift to more fuel-efficent vehicles, state lawmakers have a number of concerns about a program being considered in states around West Virginia calling for the taxation of miles drived as opposed to a tax on gasoline. Gasoline taxes that fund roads and highway maintenance will take a hit as cars use less fuel.
Read more...State cuts keep on coming (KBCI Boise)
It's no surprise tough times call for tough measures and that's exactly what state agencies are gearing up for come next week after the governor gives his state of the state address.
Read more...K-State rolls Bengals (49 ABC News Topeka)
Kansas State beat up on Idaho State today. Find out who the big performers were.
Read more...CSI not pursuing foregone taxes to stem cuts (The Olympian)
College of Southern Idaho officials say they won't pursue foregone taxes to help offset impending state budget cuts.
Read more...