Mariners have flexibility finding residences

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by on November 7, 2010 at 3:53 pm

How you live plays a factor

Studies have evolved to encompass the “individual” factors in financial decision making. State tax rates can be quite deceiving if we don’t account for all taxes imposed. A mariner examining only the State’s income tax is ignoring many other taxes the State may impose on their specific lifestyle.

A smoker wanting to save some dough might prefer to live in South Carolina, which charges just 7 cents a pack — as opposed to the state tax average of $1.19. A heavy drinker might want to move from Oregon, where hard liquor is taxed at the rate of nearly $21 a gallon, to Maryland or Washington, D.C., which have the country’s lowest liquor taxes, $1.50 a gallon.

Are you a lottery devotee? You’ll keep more of your winnings in Rhode Island, which takes a tax of 22 cents on the dollar, and the least in West Virginia, with a 61-cent tax.

Of course, even Ted Taxpayer and Debbie Deduction, two people making the same salary and living in the same neighborhood, pay different amounts in taxes. For example, Ted’s house is worth more, so he pays higher property taxes; Debbie buys fewer goods and services, thus saving on sales taxes; Ted drives a gas hog and commutes farther to work, costing him more in gas taxes; Debbie doesn’t drink or smoke, so she saves on so-called sin taxes.

via The best and worst states for taxes – MSN Money.

1 Comment

  • Nonong

    26/04/2012

    This question ballacisy is looking to see if you should itemize your deductions or take the standard deduction.When you itemize, one of the things itemized is how much in taxes you paid to the states last year. They can figure out how much you paid from your paystub. They also want to know though, if you owed any money on your 2006 tax return that you paid then, because that counts towards income taxes paid in 2007 for itemized deduction purposes.So what this question is asking is:- Did you owe any income tax on last years return that you paid.- Did you pay any back income taxes on last years return.- The key is that it’s *state* income taxes. They don’t care whether you owed / paid any federal income tax last year.Nothing too sinister.

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