How to Simplify Your Multi-State Business Taxes

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How to Simplify Your Multi-State Business Taxes
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• There are several reasons why, as a business
  owner or an individual, you may be required to
  file more than one state tax return, and its
  important that you understand when its required,
  and how you should go about doing it.
• As with any tax concern, hiring a professional
  tax company or individual tax pro to help guide
  you is a smart move, since it guarantees youll
  always be within the confines of the law and can
  meet the tax requirements in a timely and
  accurate manner.
• Below are four of the most common reasons for
  multi-state tax filing

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• 1.Youve moved from one state to another
• If both states withhold income taxes the state
  you moved from, and the state you moved to, you
  could be required to pay state taxes on a
  prorated basis, but a lot will depend on how long
  youve spent living and working in each state.
• 2.You reside in one state, but work in another
• If youre working in a state different to the one
  in which you live, theres a good chance you may
  need to file more than one state tax return, but
  as is typically the case, you wont be required
  to pay taxes to both states. Instead, and unless
  both states have a reciprocal tax agreement, you
  would be required to pay taxes to the state in
  which youre employed.

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• What is a state reciprocal tax agreement?
• This describes an agreement upon which one state
  agrees not to tax employee compensation, subject
  to employer withholding of the other reciprocal
  state such agreements only apply to employee
  compensation.
• 3.You own property that earns you an income in
  another state
• If you generate a reportable income from a
  property in another state, you might be required
  to file a tax return in that state, and you
  should report the income on your resident return,
  too.

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• 4.You own a business and work in multiple states
• If youre self-employed and work across multiple
  states, while your federal income tax isnt
  affected by this, you will be required to file
  tax returns and pay state income taxes in
  multiple states. For business owners working in
  more than one state, things can quickly get
  complicated when it comes to taxes, and liaising
  with a tax professional who understands the
  intricacies of your circumstances, is generally
  advisable.

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• If youre in a situation in which youre required
  to file taxes in more than state, or arent sure
  if this applies to you or not, you should try to
  seek help from a professional tax advisor at the
  earliest to avoid breaking any laws or incurring
  any penalties. Guidance from a tax specialist
  will simplify all tax proceedings irrespective of
  whether you work in one state, two, or twenty,
  just make sure you always work with one that has
  plenty of experience and that youre comfortable
  dealing with.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services Miami Beach.
  If you are looking for individual tax preparation
  in Miami Gardens, Heyer Associates would be a
  right option.