With national events continuing as they are, here at Above All Accounting, Inc., we’re finding ourselves locking into “go mode”… again.
It’s unusual for us to be in this mode smack in the middle of June, but this year has not been usual.
This is because the tax deadline (July 15th, 2020) is barreling at us.
If you have NOT filed your 2019 taxes… give us a call. (503)-648-6184
I would also like to remind you, that two estimated federal tax payments are due on July 15th. Many states have followed suit on this, but some have not. Here’s a handy list for the due dates in your state — since, although most of our clients are based locally, we, of course serve clients across the country:
I brought up the states and with all of the financial chaos roiling around us, it’s a good time to consider: is your state in financial trouble?
Chances are good that it is… in which case: what will your state do about it, and how might it affect you?
“Real World” Personal Strategy Note
State Tax Revenue Collection and How It Might Affect YOUR Wallet
“A man should always consider how much he has more than he wants.” -Joseph Addison
The financial picture for the various states in our nation is a mish-mash of various revenue sources (and expenses).
Unlike, say, the federal government, the states cannot print money. So they are forced to go hunting for it. And they get it from a few primary sources: sales tax (based on purchases/consumption), income tax (individual and business taxes based on income), property tax and “other” taxes like the tax on fishing licenses, driver’s licenses and a lot of other smaller items.
And the most volatile of these sources is the income tax. Sales tax has obviously taken a hit as well (but people still need to buy stuff) and property taxes, which we will discuss further next week.
So which states will be hunting for more revenue? This article will give you a good picture — it’s a breakdown for which states are the most reliant upon income tax revenue:
Oregon and Maryland stand out (especially Oregon, which has no sales tax) — but MANY states will be on the hunt for that sweet, sweet green.
You are your state’s “economic stimulus plan”. Make no mistake… the next couple of years will find MOST states finding ways to receive revenue from you.
This will take the form of increased property taxes (which you can fight), increased scrutiny of business operations that cross state lines (for business owners, “NEXUS” is a word you need to know), as well as chopping their expenses.
There are already school districts that are looking at laying off anywhere from 1 in 5 to 1 in 12 teachers. Half of all cities will need to make last resort cuts to their police and fire departments. And garbage services will probably take a hit.
So what can you do about this? Well, that’s where we come in. Yes, we can help you plan out your federal tax picture and help you save however, state taxes are still very much a category in which it quite literally pays to have a pro in your corner.
We’re in your corner.