5 Surprising State Tax Breaks You Didn’t Know Existed
Did you know that some states offer tax incentives to their residents? Find out the five examples of surprising state tax breaks and how they can help put money in your pocket without compromising your financial security.
by Vinicius Barbosa
Save Money on Your Tax Bill Today With These 5 Unknown State Tax Breaks
Did you know that certain states offer their residents tax breaks beyond the commonly known deductions?
Depending on where you live, lucrative benefits could be waiting for you in the form of state-sponsored tax incentives.
You may not even be aware that such offers exist — until now!
In this blog post, we’ll look at five surprise state tax breaks. See how they can put money back into your pocket without compromising your financial security.
From reduced debt payments to unique homebuyer assistance programs. These unknown incentives will have you thanking whoever declared the law!
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Make Use Of These Little Known State Tax Breaks Before It’s Too Late!
In this day and age, taxes can be a source of stress and confusion for many. Filing taxes correctly each year is important to make sure you are avoiding any potential issues between yourself and the IRS.
Understanding everything you owe can be tricky between the national tax code and taxes imposed at the state level.
But even though filing your taxes may seem daunting, there are a few ways to make Uncle Sam smile. And maybe save some money in the process.
That’s right! By taking advantage of certain state tax breaks, you could find deductions and credits that will reduce your overall taxable income.
In this blog post, we’ll explore five surprising state tax breaks many taxpayers don’t know about. But definitely should!
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5. Whaling boat captain deduction
For centuries, subsistence whaling has played an essential role in many Arctic communities of northern Alaska.
Tax breaks have been provided to boat captains who the Alaska Eskimo Whaling Commission identifies to sustain this culture.
A cap of $10,000 is available to offset the costs associated with the outfitting and operating their vessels, including crew labor and materials.
The deduction is seen as a charitable contribution since the crews do not engage in commercial whaling; instead, they donate most of the harvested blubber and skin (known as muktuk) back to their village for use by all its members.
4. ‘Exceptional tree’ deduction
In 1975, Hawaii was quickly developing, and that growth came at the expense of its outstanding trees and natural beauty.
The State of Hawaii responded by passing legislation that created intimate advisory committees to ensure future generations would benefit from these exceptional trees.
These County Arborist Advisory Committees establish guidelines and regulations for preserving any trees of noteworthy stature, along with granting tax breaks for their upkeep.
Homeowners whose property contains such trees are allowed tax deductions up to $3000 every three years based on Section 235-19 of the state’s tax law.
Furthermore, anyone wishing to trim or prune their tree must obtain approval from the corresponding county committee before taking action.
3. ‘Newlywed’ tax credit
With the tax credit for premarital preparation courses, South Carolina couples are eligible for tax breaks when they take the course within 12 months of receiving their marriage license.
Both spouses completing the course unlock the full tax credit of $50, while a single spouse can claim $25.
The availability of online courses facilitated by a licensed professional from South Carolina continues to make this tax credit widely accessible.
Since 2006, over 29,000 people have been married in the state last year alone. A powerful reminder that South Carolinians are taking advantage of this tax-saving opportunity.
2. Reforesting tax credit
The Mississippi Reforestation Tax Credit offers tax breaks that landowners can use to write off up to 50% of the cost of approved reforestation practices.
As an added bonus, there’s a lifetime tax limit of $75,000 – a great incentive for those looking to restore their land with hardwoods and pines.
To apply for this tax credit, applicants must first secure an approved reforestation plan from either a registered or graduate forester.
However, land already used by federal or state legislation incentives is ineligible, and orchards, ornamental trees, and Christmas trees won’t qualify.
1. Centenarian exemption
When tax season arrives, we all want to ensure we get every tax break. Did you know that if you are 100 years old or over and a state resident, even for only six months, you don’t have to pay any annual state income tax in New Mexico?
This can be a great tax break for those who’ve reached the remarkable milestone of being at least one century old!
However, it’s still important to note that federal tax may be due, so you’ll still need to check before filing your tax return.
Now that you know the top five unknown tax breaks offered across the US, you can take advantage of the various opportunities available and benefit from state-sponsored benefits.
By understanding these incentive plans, you can plan your finances judiciously and enjoy the gains further down the line.
Whether it’s reduced debt payments or freeing up funds for an early retirement, such incentives are great options to consider.
Don’t be afraid to explore these state-backed tax breaks and make them a part of your financial strategy today!
With the right approach and information in hand, you’ll get the maximum returns out of these surprise state tax breaks.
Tax season 2023: everything you need to know
Tax season 2023 is here, and it’s time to get your finances in order! No stress, though. We’ve got you covered with a comprehensive guide on tax filing.
All the information from who needs to file taxes and what forms are necessary for successful filings.
Don’t worry about navigating confusing paperwork or rules this go-around. Just follow our trusty blog post as your guide!
Tax season 2023: everything you need to know
Filing your taxes can be confusing! But we're here to help. This blog post will overview everything related to tax season 2023.
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