State taxes have different due dates by state. The state tax payment dates, in many places, are the same as the date of filing federal taxes. Every year, you should inquire with your state’s income department for those living in areas without a personal income tax. Then, ensure you know the exact date when to pay your taxes because state income tax due dates change every year due to holidays and weekends.
What Would Happen If You Cannot Give Income Tax Before Due Dates?
The state and local governments of the United States collected an estimated 513.72 billion dollars in taxes during the first quarter of 2024. Over the last quarter, these governments had collected approximately 515.99 billion U.S. dollars in taxes. If you owe a refund, it will be forfeited if payment is not made. But if you owe money, the results can be a lot worse. Besides that, other things may happen:
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Fines and Fees
When you owe taxes and the interest rate is due, you add 3% to the federal short-term interest rate. The government sets this rate every three months. So state tax income tax preparation before the due date is a must. With a short-term rate of 5%, the interest on taxes that haven’t been paid is 8%.
Interest may be charged as a late payment fee on your bill at 0.5% per month. However, the IRS waives them if this is the first time and if you can produce a valid reason for missing a payment.
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Liens and Levies
A few months later, the IRS tells you how much you owe. After that, they will send you collection notices or call you. In the end, you might get a Notice of Intent to Levy, which is a letter from the IRS saying they are ready to take your assets to pay the amount they owe. The agency can take your house, car, or bank accounts.
You have 30 days from the state income tax due dates of the Notice of Intent to pay the overdue amount, file an appeal, or come to an agreement with the IRS before anything else happens.
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Other Effects
Finally, the State Department can deny issuing a passport or renewing an existing one for you if you have not repaid the debt amount. The State Department will also seize your passport if your tax debt is seriously delinquent and exceeds $62,000.
They have 10 years to get back taxes that aren’t paid. Engaging in tax evasion and tax fraud may lead to imprisonment, but imprisonment is not posed by the lack of enough funds to pay one’s taxes.
Tips and Best Practices on Preparing For State Income Tax Due Dates
There are times when you need to do things by certain state income tax due dates, like turning in work assignments or updating your car’s license. No matter if you like to plan or put things off, these tax tips will help you do your taxes in the best way possible.
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Save Money in an FSA Or HSA
Consistent contributions to a health savings account (HSA) or a flexible spending account (FSA) can help provide for future savings of certain expenses. Funds contributed to your FSA and HSA are untaxed. This may lower your taxable income. Also, withdrawals aren’t charged as long as they’re used for certain costs.
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Watch Out for Tax Scams
You should know that there are more tax scams than ever before you start preparing your state tax income tax. Bad people want to steal your money and personal information, using all kinds of attractive tricks to get this information from you. When someone calls about your taxes, carefully consider what they ask. While the IRS will never send you a notice by email or text message or even through one of those social media outlets, it usually is mailed through the U.S. Postal Office.
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Hire a Tax Preparer or Use Tax Tools
If you’re going to do your taxes online, make sure you use tools and follow state income tax rules. You can read reviews online to find out which platforms get the best scores and are the easiest to use. If you only have one or two jobs, plan to take the standard deduction, and don’t have any complicated investments, then tax software should work fine for you.
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Ask For More Time by Filing an Extension
People need a little extra time to do their taxes when they are busy with work, sports, family, and other things. Don’t forget about the state income tax due dates. Find out how much tax you owe and send the payment along with a request for more time.
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Learn How State Tax Laws Are Different
There are different rules in each state income tax rate in 2024, and it is about how to figure out how much tax you owe. If you understand these changes, you might be able to save money on your taxes. You might be able to get help with your taxes by getting credits for long-term care payments or income exemptions, like income from retirement.
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Check Out the Return from Last Year
If you hire a new tax agent, follow the state income tax rule; going over last year’s return can help them help you remember some important things. Here is an example:
The banks, mutual funds, and other financial companies that sent you 1099 forms should be listed on your tax return from last year. They should send you 1099s again this year unless you closed the accounts or sold the investments in between. Use that list to make sure you know your state income tax deduction limit.
Also, Read – What Is the Difference Between Federal Estate Tax and State Tax?
Conclusion
You can organize your records ahead of state income tax due dates to save time and money on your taxes. You do them yourself or hire someone else to do them. Starting early makes everything easier, and you will finish before the end of the year. If you hire a company, they may ask you to fill out an application or get information from you directly. In either case, getting ready ahead of time will help you clear the process.
