The following nine U.S. states currently don’t have an income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Residents of New Hampshire and Tennessee do pay tax on dividends and income from investments.
We do not offer state income tax courses, except for California. For other states with an income tax, we recommend that the students download or print a set of state instruction and applicable publications for use in following along with the federal chapter subject matter. The student should prepare state income tax returns for completed federal tax return Learning Activities in our course using the instructions provided by their state department of taxation. Here is a list of websites of State Tax Agencies for your references.
Most tax preparation software applications automatically prepare the state, usually starting with the Federal Adjusted Gross Income. To prepare accurate state returns, students will need to be able to identity the differences in Federal and State tax law for any state return, for which they are required to file. The students will need to understand how to make adjustments, subtractions, and additions for the differences for the state from the Federal (e.g., income additions and subtractions, differences in exemptions, deductions, credits, proration for part-year residency, etc.).