Moving is a major decision, and relocating to another state can be overwhelming. Often there are many unanswered questions, and no resource to find the answers you're looking for. While we may not have the best answer on where to eat (Smoke Grill) or the best places to go while (Gathering Place), but Chris Smith Tax Law, in Tulsa Oklahoma, is here to help with all your tax questions. Here is a quick guide to: Learn All You Need About Oklahoma Taxes.
According to the Tax Foundation 2018 figures, Oklahoma maintains one of the lowest overall effective tax rates in the United States. Oklahoma’s state and local tax revenue in totaled $3,697 per capita. Which is almost $1,200 less than the American average. An estimated 23.5% of state revenue is generated from excise taxes. Oklahoma state and local government depends heavily on excise and other taxes other than income or property tax, in order to offset the relatively small tax burden placed on constituents. This is a far greater share than the 18.2% average across America. Oklahoma taxes are not only one of the lowest in our region they are the third lowest of all 50 states. And taxes are still falling. OKPolicy.org reported Oklahoma taxes as a percentage of income has been going down since the turn of the century.
Please take into consideration another valuable piece of information. Analysis from the sixth edition of Who Pays? by the Institute on Taxation and Economic Policy (ITEP) finds the lowest-income 20 percent of Oklahoma taxpayers; earning an average income of $12,000 per year, contribute 13.2 percent of their income in state and local taxes. Oklahoma is the fifth highest state and local tax bill for this income group in the country. Similarly, among the next 20 percent of taxpayers; whose average income is $26,100, state and local taxes are the 8th highest nationally. On average, this accounts for 11.2 percent of their income.
Unfortunately, Oklahoma most low-wage workers receive minimal tax breaks. The state’s Earned Income Tax Credit is non-refundable and only matches five percent of the federal credit. Its child-related credits are also nonrefundable. Meanwhile, the “Credit/Refund of Sales Tax” is the only refundable credit targeted to low-income workers. And its property tax circuit breaker is limited to elderly and disabled homeowners. Meanwhile, the top 1 percent of households in the Sooner State — a group with an average income over $1.1 million — contribute just 6.2 percent of their income in state and local taxes.
Oklahoma tax rates are the same for residents, part-year residents, and nonresidents. However, Oklahoma resident individuals whose gross income from both within and outside of Oklahoma exceeds the standard deduction plus personal exemption are required to file an Oklahoma income tax return. Nonresidents are required to file an Oklahoma income tax return when they receive gross income of at least $1,000 of Oklahoma source income. The Oklahoma Tax Commission reports that personal and dependent exemptions, as defined by the Internal Revenue Service, are allowed (deduction of $1,000 per exemption). An additional exemption of $1,000 may be allowed for taxpayer or spouse who is blind at the close of the tax year. Also allowed is an additional exemption of $1,000 for each taxpayer or spouse who is sixty-five (65) years of age or older at the close of the tax year AND has met qualifications based on their filing status and federal adjusted gross income (Federal AGI).
There are many reasons to move to Oklahoma. Ever changing weather and competitive state sports, to southern hospitality and small economic downturns, there is a little bit for everyone. Just remember, as you consider changes to your tax rate if you move states, keep in mind where your tax dollars go. You need to weigh all the pros and cons to see if your move will cause you to pay more tax and if so, how that will affect your household's income. If you have any questions regarding Oklahoma Tax Law call Chris Smith Law Firm in Tulsa Oklahoma to schedule an over-the-phone consultation.
Types of Taxes in Oklahoma
Recently, Tax policy has been the center of some of the fiercest battles in American politics. The Oklahoma state budget outlook has greatly improved, with initial projections of over $700 million in additional revenue available for the Legislature to appropriate. All thanks to our strong economy and recent tax increases. Chris Smith Tax Law located in Tulsa Oklahoma is the premier resource to elevate your options when dealing with personal and business taxes. In addition to major income taxes, here is a list of several other types of taxes that Americans should be aware of.
Estate Tax: The property you leave behind when you die is included in this tax. Leaving behind more than the standard limit leaves you heirs a heavy tax burden.
Property tax: States with no income tax generally have higher state taxes while individuals who rent property, instead of owning property, avoid this tax altogether.
IRS Audits and Appeals: An IRS audit can be time-consuming and stressful. Choosing the right attorney can relieve the stress that stems from an audit.
IRS Tax Litigation: IRS civil tax litigation cases takes place in multiple courts. Understanding the rules and procedures for each separate court.
IRS Collections Cases: The IRS is allowed to place liens on personal property and engage in collection actions forbidden to other creditors. Resolve your IRS collections cases by exploring options to help pay back tax revenue through Installment agreements or Offers in compromise.
Criminal Tax Matters: Civil audits generally go hand in hand with criminal investigations of your taxes. Knowing how to protect your rights in criminal tax matters is vital to a favorable outcome. Business and Employment Tax Cases: Businesses and corporations often encounter potentially damaging tax difficulties. Obtaining the appropriate council can make all the difference when dealing with business and employment taxes.
International Tax Issues: The taxing authority of the United States extends far beyond its natural borders. Whether you are a foreign national in the U.S. or are a U.S. national living abroad a tax attorney can relieve your stress. Oklahoma State Tax Issues: Income tax, sales tax, withholding tax and unemployment tax all qualify as concerning state level issues.
Bankruptcy: Whether you are an individual who is seeking a fresh start under Chapter 7 or Chapter 13 bankruptcy, or if you own a struggling business that needs the protection afforded by a Chapter 11 bankruptcy, bankruptcy is an option available to the public. When there have been difficulties and misunderstandings between you and the IRS concerning your taxes, it is not uncommon for them to take action against you. This can result in your assets and accounts being frozen, your property being seized, and your entire life being turned upside down. If you are up against the government and its vast resources and you need legal representation in a complex tax matter, come to Chris Smith Tax Law. Our Tulsa tax lawyer is ready to speak with you and provide qualified insight for your unique case. If you would like to meet with us confidentially, please feel free to contact us right away.
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