The Foreign Service Journal, February 2011

A F S A N E W S Refer to the tax division’sWeb site for current information and handy filing hints, as well as for forms and regulations. Write: Rhode Is- land Division of Taxation, Taxpayer Assis- tance Section, One Capitol Hill, Providence RI 02908-5801. Phone (401) 574-8829. E-mail: txassist@tax.state.ri.us Web site: www.tax.state.ri.us SOUTH CAROLINA: Individuals domi- ciled in South Carolina are considered resi- dents and are subject to tax on their entire income regardless of their physical presence in the state. South Carolina imposes a grad- uated tax rising in six steps from3 percent on the first $5,480 to a maximum of 7 percent of taxable income over $13,700. Write: South Carolina Tax Commission, 301 Gervais St., P.O. Box 125, Columbia SC 29214. Phone: (803) 898-5709. E-mail: iitax@sctax.org Web site: www.sctax.org SOUTH DAKOTA: There is no state in- come tax and no state inheritance tax. State sales and use tax is 4 percent; municipalities may add up to an additional 2 percent. Write: South Dakota Department of Rev- enue, 445 E. Capitol Ave., Pierre SD 57501- 3185. Phone: (605) 773-3311. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.state.sd.us/drr2/ revenue.html TENNESSEE: Salaries andwages are not subject to state income tax, but Tennessee im- poses a 6-percent tax onmost dividends and interest income of more than $1,250 (single filers) or $2,500 (joint filers) in the tax year. Write: Tennessee Department of Revenue (Attention: Taxpayer Services), 500 Deader- ick St., Nashville TN 37242. Phone: (615) 253-0600. E-mail: TN.Revenue@tn.gov Web site: www.state.tn.us/revenue TEXAS: There is no state personal income tax. Write: Texas Comptroller, P.O. Box 13528, Capitol Station, Austin TX 78711- 3528. Phone: toll-free 1 (877) 622-8375. E-mail: comptroller.help@cpa.state.tx.us Web site: www.window.state.tx.us UTAH: Individuals domiciled inUtah are considered residents and are subject to Utah state tax. Utah requires that all Federal Ad- justed Gross Income reported on the federal return be reported on the state return re- gardless of the taxpayer’s physical presence in the state. Utah abolished variable tax rates in 2008 and now levies a flat tax of 5 percent on all income. Some taxpayers will be able to claim either a taxpayer tax credit or a retire- ment tax credit, or both (seeWeb site for ex- planation). Write: Utah State Tax Commiss- ion, Taxpayer Services Division, 210 North 1950West, Salt Lake City UT 84134. Phone: toll-free 1 (800) 662-4335, or (801) 297-2200. E-mail: Link through the Web site’s “Contact Us” tab. Web site: tax.utah.gov VERMONT: Individuals domiciled in Vermont are considered residents and are subject to tax on their entire income regard- less of their physical presence in the state. The 2010 tax rate ranges from 3.55 percent on taxable income under $34,000 for singles and $56,800 for joint filers to a maximum of 8.95 percent on taxable income over $373,650 for singles and joint filers. Write: Vermont Department of Taxes, Taxpayer Services Division, 133 State St., Montpelier VT 05633-1401. Phone: (802) 828-2865. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.state.vt.us/tax VIRGINIA: Individuals domiciled inVir- ginia are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Individ- uals domiciled elsewhere are also considered residents for tax purposes for the portion of any calendar year inwhich they are physically present in the state for 183 days or more. These individuals should file using Form760. In addition, Virginia requires non-residents to file Form 763 if their Virginia Adjusted Gross Income (which includes any federal salary paid during time they are residing in Virginia) exceeds $11,650 for single filers and married filing separately, or $23,300 for mar- ried filing jointly in tax years 2010 and 2011. (These amounts will increase to $11,950 and $23,900 for Tax Year 2012 and beyond.) In- dividual tax rates are: 2 percent if taxable in- come is less than $3,000; $60 plus 3 percent of excess over $3,000 if taxable income is be- tween $3,000 and $5,000; $120 plus 5 percent of excess over $5,000 if taxable income is be- tween $5,000 and $17,000; and $720 plus 5.75 percent if taxable income is over $17,000. In addition, for the 2009 and sub- sequent tax years, Virginia allows employers of household help to elect, using FormR-1H, to pay state unemployment tax annually in- stead of quarterly. Write: Virginia Depart- ment of Taxation, Office of Customer Services, P.O. Box 1115, Richmond, VA 23218-1115. Phone: (804) 367-8031. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.tax.virginia.gov WASHINGTON: There is no state in- come tax and no tax on intangibles such as bank accounts, stocks and bonds. Residents may deduct Washington sales tax on their federal tax returns if they itemize deductions. Write:Washington State Department of Rev- enue, Taxpayer Services, P.O. Box 47478, OlympiaWA 98504-7478. Phone: toll-free 1 (800) 647-7706. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.dor.wa.gov WEST VIRGINIA: There is no tax liabil- ity for out-of-state income if the individual has no permanent residence inWestVirginia, has a permanent residence elsewhere and spends no more than 30 days of the tax year in West Virginia. However, non-resident domiciliaries are required to file a return on Form IT-140 for all income derived from West Virginia sources. Tax rates rise in four steps from $150 plus 4 percent of income over $5,000 for single filers and $300 plus 4 percent of income over $10,000 for joint fil- ers, to $1,387.50 plus 6.5 percent of income over $30,000 for single filers and $2,775 plus 6.5 percent of income over $60,000 for joint filers. Write: Department of Tax and Rev- enue, Taxpayer Services Division, P.O. Box 3784, CharlestonWV 25337-3784. Phone: toll-free 1 (800) 982-8297, or (304) 558-3333. E-mail: taxwvtaxaid@wv.gov or through the “Contact Us” page on the Web site. Web site: www.wvtax.gov WISCONSIN: Individuals domiciled in Wisconsin are considered residents and are subject to tax on their entire income regard- less of where the income is earned. Wiscon- sin’s current tax rate ranges from 4.6 percent on income up to $10,020 for single filers or F E B R U A R Y 2 0 1 1 / F O R E I G N S E R V I C E J O U R N A L 67