Imagine living in a paradise surrounded by rugged landscapes, blue waters, and white sands. Living in Hawaii is heavenly, but it may come at a steep price especially when you consider the tax preparation Hawaii processes. If you want to live in this veritable paradise, you will need to be prepared to file state income tax returns as well as federal tax returns.
The island happens to have one of the most complex tax systems in the United States. The fact that the system has a total of twelve income tax brackets further helps to compound the situation for any person looking to file their returns. Another factor to take into account is that the tax rates can run as high as eleven percent, depending on your prevailing tax bracket.
The twelve tax brackets have different rates which are enforced by the taxation department. The good news, however, is that there is a tax office in each county, making it easier to make inquiries on how to go about completing this process. The department also has a detailed web page listing everything you need to know about the filing process.
Residents in the state have some breathing room after the expiry of the Federal Tax Day. However, you should make sure that you have filed your tax returns by the 22nd day of April each year. For those that are unable to file by this date, they can always request for an extension. The six-month extension is normally given to people who already owe the department back taxes.
It is important to note that the extension is not without its downsides. Just because you have asked for an extension and been granted one is not to mean that the state will not charge you a penalty for being late. It will charge a penalty and charge an interest for the amount you owe. The interest is charged on a per month basis until the outstanding amount is cleared.
The one good thing about the entire process is that you do not have to worry about having to deal with different filing statues. The same statuses you encountered when filing federal returns are the same ones that you will find when dealing with the state returns. You will, therefore, find questions such as whether you are single or married, and whether you are filing with your partner or on your own.
As stated earlier, Hawaii uses a progressive tax system. Residents will, as such, fall into one of the 12 tax brackets defined by the state. The brackets are arrived at after calculating your taxable income and your filing status. If unsure about how to proceed, it is recommended that you seek the services of a tax expert, as these two factors can make the entire process more complicated.
The taxation department provides e-filing services for those looking to file individual income tax via its e-portal. You can also use a tax professional to file your federal and income tax returns or via the use of a tax preparation software. The software to use has been listed on the official departmental website.
The island happens to have one of the most complex tax systems in the United States. The fact that the system has a total of twelve income tax brackets further helps to compound the situation for any person looking to file their returns. Another factor to take into account is that the tax rates can run as high as eleven percent, depending on your prevailing tax bracket.
The twelve tax brackets have different rates which are enforced by the taxation department. The good news, however, is that there is a tax office in each county, making it easier to make inquiries on how to go about completing this process. The department also has a detailed web page listing everything you need to know about the filing process.
Residents in the state have some breathing room after the expiry of the Federal Tax Day. However, you should make sure that you have filed your tax returns by the 22nd day of April each year. For those that are unable to file by this date, they can always request for an extension. The six-month extension is normally given to people who already owe the department back taxes.
It is important to note that the extension is not without its downsides. Just because you have asked for an extension and been granted one is not to mean that the state will not charge you a penalty for being late. It will charge a penalty and charge an interest for the amount you owe. The interest is charged on a per month basis until the outstanding amount is cleared.
The one good thing about the entire process is that you do not have to worry about having to deal with different filing statues. The same statuses you encountered when filing federal returns are the same ones that you will find when dealing with the state returns. You will, therefore, find questions such as whether you are single or married, and whether you are filing with your partner or on your own.
As stated earlier, Hawaii uses a progressive tax system. Residents will, as such, fall into one of the 12 tax brackets defined by the state. The brackets are arrived at after calculating your taxable income and your filing status. If unsure about how to proceed, it is recommended that you seek the services of a tax expert, as these two factors can make the entire process more complicated.
The taxation department provides e-filing services for those looking to file individual income tax via its e-portal. You can also use a tax professional to file your federal and income tax returns or via the use of a tax preparation software. The software to use has been listed on the official departmental website.
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