States with no state income taxes
1. Alaska: Alaska has no state income or sales tax.

2. Florida: Florida has no state income tax, but sales and property taxes are above the national average.

3. Nevada: Nevada has no state income tax but sales taxes, sin taxes and taxes on casinos and hotels are high.
4. South Dakota: South Dakota has no state income tax.

5. Texas: Texas has no state income tax, but sales and property taxes are above the national average.

6. Washington: Washington has no state income tax, but sales and exercise taxes are above the national average.

7.Wyoming: Wyoming has no state income tax.

There are two states no state income tax for wage (earned income) but interest and dividend. The new legislation will be for no income tax for interest and dividend soon. -- Tennessee and New Hampshire.

State government website link for your reference (sort by top research ranking)
State of California: https://www.ftb.ca.gov/
State of Oregon: https://www.oregon.gov/dor/forms/Pages/default.aspx
State of New York: https://www.tax.ny.gov/pit/default.htm
State of New Jersey: https://www.state.nj.us/treasury/taxation/individuals/index.shtml
State of Arizona: https://azdor.gov/individual-income-tax-filing-assistance
State of Minnesota: https://www.revenue.state.mn.us/
State of Pennsylvania https://www.revenue.pa.gov/Pages/default.aspx
From IRS website link: Visit the state websites below and find information on doing business in the state, taxation, links for employers, and more.
https://www.irs.gov/businesses/small-businesses-self-employed/state-government-websites
 
 
 

For California state: New Forms for 2020 to Report Minimum Essential Coverage and Premium Assistance Subsidies

* Individuals will start reporting minimum essential coverage, also known as qualifying health coverage, on their 2020 tax returns. 

* Information you need: 

• FTB 3895, California Health Insurance Marketplace Statement

• Form 1095-A Health Insurance Market Place Statement; 1095-B, Health Coverage, or 1095-C, Employer-Provided Health Insurance Offer and Coverage

* New health care forms Draft California 2020 forms and instructions are available on our website. Final versions are expected to be available on December 15, 2020.

 

For California state Update on the new Head of Household process

Back in January we began the new process of verifying Head of Household (HOH) filing status when incoming returns are processed using the information provided on FTB Form 3532.

Taxpayers who do not:

• Include the FTB Form 3532

• Qualify for the HOH based on the information provided on the form, receive a Notice of Tax Return Change (NTRC) denying the HOH filing status

During this 2020 filing season, approximately 2 million taxpayers claimed the HOH filing status for their 2019 tax year returns. Taxpayers not meeting the HOH status requirements received notification via NTRC within weeks of filing their returns. The NTRC provided specific reasons why they did not qualify for the HOH status. For taxpayers that disagreed with the NTRC, they were able to utilize our contact centers via phone, online chat, or correspondence, providing a simpler process for taxpayers to resolve their issue. We are committed to providing excellent customer service and continue to explore innovative ways to improve our processes to better serve California taxpayers.

 

Christine Lo

Accounting and Tax Services

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