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Post by aaplcrazie on Apr 10, 2023 3:30:37 GMT -8
So last Yr sold a chunk of AAPL for cash property purchase. While I was aware and anticipating the Cap Gains around 20K, what I did not consider was States seeing it as income.
Last Year I worked in MD, NJ, and reside in NY. MD it seems wants almost 1K despite only making around $2900 and money already taken out of of my W2, NJ is giving me a refund even though I made about $15k they are not counting the non-NJ Income. NY where i made the least wants at least 16K and they also have applied taxes to my NJ work which I really don't understand.
Any thoughts or comments on the above or how to Mitigate?
TIA.
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4aapl
Moderator
Posts: 3,648
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Post by 4aapl on Apr 11, 2023 20:21:30 GMT -8
Each state is different, though CA and NY are both known to be some of the toughest, going after as much as they can and having some of the highest state income tax rates.
I don't know how it works there, but I thought with CA by default they wanted to tax everything, but they would subtract out what was paid elsewhere. But maybe I am thinking federal vs money made in other countries.
This year ours should be simpler, but we'll see how it goes. We still have some flexibility with certain aspects, which is the hardest to deal with since it means we still need to figure out which method is better, but most things are set.
There are still some options for funding a IRA for 2022, and might also be for some other things like a medical spending account (wrong wording, but that sort of thing) if you have a high deductible plan. There's also time to fund a Roth for 2022, but that doesn't help with 2022 taxes.
Good luck. Sometimes it just sucks, and you have to think of all of the good that your tax dollars will hopefully make. Roads, schools, medicine, and other things to help people. Ahhh, all sorts of good things. And owing taxes means you made money, so it's not all bad.
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Post by aaplcrazie on Apr 12, 2023 7:39:31 GMT -8
Hey 4aapl - all very valid points, much to consider thanks for the input.
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Dave
Member
"It's tough to make predictions, especially about the future." Yogi Berra
Posts: 4,111
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Post by Dave on Apr 12, 2023 11:12:54 GMT -8
Hey 4aapl - all very valid points, much to consider thanks for the input. And there is always the choice of moving to a state that doesn’t have a state income tax, which is the choice that a lot of people and companies are picking. And those states also offer great roads, schools, medicine and other things to help people.
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Post by aaplcrazie on Apr 12, 2023 15:23:58 GMT -8
Yeah The Joke is on me as I moved here for Fim and TV Work, shoulda sold in my previous State......Ugh.
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4aapl
Moderator
Posts: 3,648
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Post by 4aapl on Apr 12, 2023 16:08:21 GMT -8
And there is always the choice of moving to a state that doesn’t have a state income tax, which is the choice that a lot of people and companies are picking. And those states also offer great roads, schools, medicine and other things to help people. Sometimes that is debatable. The money has to come from somewhere. We have mining and gambling, so there's that. I don't know the exact breakdown, but I'd probably feel differently about Teslas if I knew that each one was giving NV $250, or whatever. It's probably more like $5. OTOH, CA is 5 minutes away, and locally speaking their roads and schools and hospitals are at the same level. Fun times. Taxes should be easy this year, but it's still something I am putting off. A donation canceled out with normal income, but I made a profit on some covered calls, and collected some dividends, so there's some taxes to be paid.
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