The Foreign Service Journal, February 2004

8 AFSA NEWS • FEBRUARY 2004 Hawaiiareconsideredresidentsandaresub- ject to taxon their entire income regardless of their physical presence in the state. Hawaii’staxraterangesfrom1.4to8.25per- cent depending on income and filing sta- tus. Write: OahuDistrictOffice, Taxpayer ServicesBranch, P.O. Box3559,Honolulu, HI, 96811-3559. Phone: (808) 587-4242or 1(800) 222-3229. Web site: www.state.hi.us/tax IDAHO : Individuals domiciled in Idaho for an entire tax year are considered resi- dents and are subject to tax on their entire income. For the 2003 tax year Idaho’s tax rate is between1.6and7.8percent depend- ing on earned income. Idahooffers a safe- harborprovision: a resident individualwho is outside Idaho for a qualifying period of time will not be considered a resident. If an individual qualifies for the safe harbor, heor shewouldreport as anonresident and be taxed only on income from Idaho sources. Anonresidentmust file an Idaho income taxreturn ifhisorher gross income fromIdaho sources is $2,500ormore. To request forms write: Idaho State Tax Commission,P.O.Box36, Boise,ID83722- 0410. Phone: 1(800) 972-7660. Web site: www2.state.id.us/tax ILLINOIS : Individuals domiciled in Illinois areconsideredresidents andare sub- ject to taxon their entire income regardless of their physical presence in the state. The Illinois tax rate is a 3 percent flat rate, with a personal exemption for all taxpayers of $2,000. Write: Illinois Department of Revenue, Forms Division, 101 West Jefferson St., Springfield, IL 62794-9044. Phone: (217) 782-3336or 1(800) 732-8866. Web site: www.revenue.state.il.us INDIANA : Individuals domiciled in Indiana are considered residents and are subject to taxontheir entire income regard- less of their physical presence in the state. However, a credit is granted for any taxes paid toanother statewhere the incomewas earned. Those who claim federal Foreign TaxCreditwill need to submit federal form 1116 to claim it in Indiana. Indiana’s tax rateremains3.4percent. Write:Department of Revenue, 100 N. Senate Ave., Indianapolis, IN46204. Phone: (317) 232- 2240. Web site: www.state.in.us/dor IOWA : Individuals domiciled in Iowa are considered residents and are subject to taxon their entire income to the extent that income is taxable on the person’s federal income tax returns. Iowa’s tax rate ranges from 0.36 to 8.98 percent depending on income and filing status. Write: Iowa Department ofRevenue,Taxpayer Services, POBox10457,DesMoines,IA 50306-0457. Phone: (515) 281-3114. Web site: www.state.ia.us/tax KANSAS : Individuals domiciled in Kansasareconsideredresidentsandaresub- ject to taxon their entire income regardless of their physical presence in the state. The Kansas tax rate ranges from3.5 to6.45per- cent depending on income and filing sta- tus. Write: Kansas Taxpayer Assistance Center, 915 SW Harrison, 1st Floor, Topeka,KS66625-0001. Phone: (785)368- 8222. Web site: http://www.ksrevenue.org KENTUCKY : Individuals domiciled in Kentucky are considered residents and are subject to taxontheir entire income regard- less of their physical presence in the state. Kentucky’s tax rate is 2 percent on the first $3,000of taxable income, plus 3percent on the next $1,000, plus 4 percent on the next $1,000, plus 5 percent on the next $1,000, and$3000plus6percentonall incomeover $8,000. Write: RevenueCabinet, P.O. Box 181, Station 56, Frankfort, KY 40602. Phone: (502) 564-4581. Web site: revenue.state.ky.us LOUISIANA : Individuals domiciled in Louisiana are considered residents and are subject to taxontheir entire income regard- less of their physical presence in the state. Resident individuals are entitled to a tax credit for income tax paid to another state on the amount of income earned in the other state and included in that state’s tax- able income. Louisiana’s tax rate ranges from2 to 6 percent depending on income and filing status. Write: Department of Revenue and Taxation, Forms Division, P.O.Box201,BatonRouge,LA70821-0201. Phone: (225) 219-0102. Web site: www.revenue.louisiana.gov MAINE : Individualsdomiciled inMaine are considered residents and are subject to taxontheir entire income regardlessof their physical presence in the state. Credit is allowed for taxes paid in another jurisdic- tion. Maine’s tax rate ranges from2 to 8.5 percentdependingonincomeandfilingsta- tus. Write:MaineRevenueServices, Forms Division, 24StateOfficeBuilding,Augusta, ME 04333. Phone: (207) 626-8475. Web site: www.maine.gov/revenue MARYLAND : Individuals domiciled in Marylandare considered residents andare subject to taxontheir entire income regard- less of their physical presence in the state. Individuals domiciled elsewhere are also consideredresidents for taxpurposes for the portion of any calendar year inwhich they are physically present in the state for 183 consecutive days or more. Maryland’s tax rate is 4.75 percent depending on income andcountyofresidence. BaltimoreCityand the23Marylandcountiesalsoimposealocal income tax, which is a percentage of the Maryland taxable income, using line 31 of Form502 or line 9 of Form503. The local factor varies from0.0125 to0.0315depend- ing on the subdivision of domicile. Write: Comptroller of Maryland, Revenue Administration Division, Annapolis MD 21411. Phone: (410) 260-7980 or 1(800) 638-2937. E-mail: taxhelp@comp.state.md.us Web site: www.marylandtaxes.com MASSACHUSETTS : Individuals domi- ciled in Massachusetts are considered res- idents and are subject to tax on their entire income regardlessof theirphysical presence in the state. Salaries andmost interest and dividend incomeare taxedat 5.3percent for CalendarYear 2003. Write:Massachusetts Department ofRevenue, Taxpayer Services Division,P.O.Box7010,Boston,MA02204. Phone: (617) 887-MDOR or 1(800) 392- 6089. Web site: www.dor.state.ma.us MICHIGAN : Individuals domiciled in Michigan are considered residents and are subject to taxontheir entire income regard- less of their physical presence in the state. Michigan’s tax rate for 2003 is 4.1 percent. Forms are available on the department’s Websiteorcanbeobtainedbycalling1(800) 367-6263. E-mail: treasindtax@michigan.gov Web site: www.michigan.gov/treasury MINNESOTA : Individuals domiciled in Minnesota are consideredresidents andare subject to taxontheir entire income regard- less of their physical presence in the state. Minnesota exempts domiciliaries who meet the foreignearned income exclusion, even though they may be federal employ- ees. Minnesota’s tax rate ranges from5.35 to 7.85 percent depending on income and filing status. Joint filers with taxable income of at least $28,000, where each spouse has earned pension or social secu- rity income of at least $16,000, may be eli- gible for a marriage credit. Write: Department of Revenue, Forms Division, Mail Station 1421, Saint Paul, MN 55146- 1421. Phone: (651) 296-3781. E-mail: indinctax@state.mn.us Web site: www.taxes.state.mn.us MISSISSIPPI : Individuals domiciled in Mississippi are consideredresidents andare subject to taxontheir entire income regard- less of their physical presence in the state.