Understanding how state taxes apply to individuals and corporations can save you or your business a good deal of money. Of the 50 states, 45 of them have a tax on individuals or corporations. Each state has different regulations about how these taxes apply to residents and non-residents. To make sure that you are filing the proper tax forms you should contact an accountant in Reno.
Here in Nevada we do not have an individual or a corporate income tax. Knowing which states have these taxes is important if you want to relocate. As an individual or a business, you can change your economic situation by moving from a state that has these taxes to one that doesn’t, and vice versa. Moving is not the only reason to understand state taxes.
If you are business owner and decide it is time to expand, you need to understand taxes. The same goes for individuals who provide professional services in multiples states. You need to know that states have different rules regarding CITUS, which governs whether you are subject to state income tax in that particular state. The best way to make sure you are not forgetting to pay taxes in certain state is to call an accountant in Reno today.
As a general rule of thumb, if you are providing professional services within that state you are going to be subject to state taxes. If this is the case your will have to prepare a non-resident return. This additional requirement while complicate your tax preparation, but is something you need to be aware of.
Because of the variety of state income and corporate taxes and the possible affect on your tax situation, you need to be aware of them. If you have questions about how they apply to you or your business, talk to an accountant in Reno.
Reno’s Best CPA,
Tim Nelson