Question for a TP that has moved to TEXAS

[photoman]

I have a client that moved to Texas last year. I understand there is no tax return due on an individual. Is there anything I should address that stands out for a resident of Texas. Such as should I use sales tax on sch A, etc. Any help would be appreciated.


Thanks, Ron

[WhiteOleander]

I have a client that moved to Texas last year. I understand there is no tax return due on an individual. Is there anything I should address that stands out for a resident of Texas. Such as should I use sales tax on sch A, etc. Any help would be appreciated.


Thanks, Ron

There is nothing that needs to be filed by an individual regarding state income tax. There is none. If there is a business involved that operates as an entity, then a franchise return must be filed. On Sch A, they can claim actual or "standard" sales tax as a deduction, whichever is greater. If they purchase a vehicle, they can claim that sales tax as an addition to the other.

[FEDUKE404]

Moving to TX

I think you're on the right path.

Of course, the guy could deduct his moving expenses on his TX return...oops, nevermind!

You probably can glean something from the sales tax tables to place on Sch A (and you need to figure out "TX days" and "not-TX days to do that properly). Whatever state taxes were paid in the prior state might take the wind out of that idea, at least for the first year.

You certainly can use moving expenses on the federal return (and NOT on the prior state return). Also, don't forget you still will likely need to show some pro-ration for income taxes from the prior state based upon part-year residency requirements.

As for things very specific to TX, others who live/work in the area can add more of any fine print you might need.

FE

[Gary2]

You certainly can use moving expenses on the federal return (and NOT on the prior state return).

Assuming the related to 39 weeks of work requirement (or its variations or exceptions) are met.

[FEDUKE404]

Work requirement rules

Assuming the related to 39 weeks of work requirement (or its variations or exceptions) are met.

One would think that fundamental requirement is a foregone conclusion for any professional tax preparer??

OTOH, perhaps not...

FE

[taxxcpa]

One thing to keep in mind: the IRS tables are only for state sales tax, 6.25%, and almost always there is another 2% local tax, so you will need to increase the amount on the IRS table by 32% unless it is someone who shops in some rare place that only charges state tax.

[Gary2]

One would think that fundamental requirement is a foregone conclusion for any professional tax preparer??

OTOH, perhaps not...

You know that, and I know that, and all the regulars know that, and I'll even grant that the newbie who passed the RTRP in November knew that for at least five minutes after walking out of the exam room - but the newbie lurker, reading the forum, who hasn't thought about it between studies last fall and the first example this filing season may not remember that. And since the form doesn't require the details, the software may not remind the tax pro of that.

Or maybe I should just come clean and admit that I forgot about it my first filing season - so long ago that the labor market was great, so it wouldn't have been an issue anyway.

[photoman]

Thanks for the information. Several years ago I had someone move to IN from Texas and I had noticed on previous returns they used sales tax on Sch A. Appreciate all the other info.

Ron