Filling Your State Tax Forms

Filling Your State Tax Forms

The taxes imposed by the States are called State taxes. State forms are used by individuals and companies to file the income earned during a year to the state revenue department. They differ for various states and so do the numerous forms required to file the returns. Most of the states impose state taxes on their residents and those that do not impose individual income tax have corporate income tax. People residing in these states have to file state income tax also, in addition to the federal income tax. The states that impose neither income tax nor corporate income tax have high sales tax.

They could be obtained from the post offices, libraries or schools. It could be downloaded from the Revenue site of the respective states.

The filling of state tax forms can be very simple in some cases and could be complex in certain other cases depending on the type of income they earn. If wages or salary is your only source of income, then it requires you to fill in very few details. If you have income from pensions, real estate, stock market transactions etc, then you will have to submit supplementary forms and worksheets and this could be very long.

If the federal tax is already filed, then you can refer to that and fill in some of the details of your state tax forms. There are certain exemptions, deductions and tax situations that are specific to each state. If you are filling the forms in yourself you should be aware of these, otherwise you will end up paying more taxes than is necessary. State taxes could be counted as deductions in the federal tax and if the state taxes are not calculated properly, this will have an impact on the federal tax.

Those who are not familiar with tax forms may use income tax software to fill in the details. This software requires you to fill in the details from your W2 tax forms, 1099 and other supporting documents. If these details are entered, the software will do the calculations and the right figures will be entered at the corresponding slots. While filing the state tax forms, the software imports the details already filled; you will be asked to fill in the details specific to the particular state.

Filing IRS form 1040 properly is essential to file the state forms as most of the details for them are imported from 1040.