State of WA capital gains tax

[Duane Anderson]

The State of WA recently (2022) introduced a State income tax of 7% on capital gains exceeding $262,000 in 2023. My software (Drake) does have a capital gains schedule in the WA income tax section of the software and it looks like the ST of WA is requiring the state return to be filed on line and is not connected to the federal. I am trying to get a copy of the return to review before I go on line and file. Has anyone else had this problem with WA....Thanks,,Duane Anderson

PS..WA does not have a state income tax except for the above.

[Rapid Robert]

The only WA tax return form my software has is for a Working Family Credit (or something similar). Has the state released the cap gain form yet?

[Duane Anderson]

The only WA tax return form my software has is for a Working Family Credit (or something similar). Has the state released the cap gain form yet?

Same for my software...WA is requiring us to go on line with them and complete the capital gains return on their system and there is no link to the federal return on my software....Thanks,,Duane

[airKevin]

I don't see a WA Capital Gain return in Drake: WA has no personal income tax. As far as I know, this return is online only on the DOR Website. They have a template available to list the sales.

7% tax on the sale or exchange of long-term capital assets such as stocks, bonds, business interests, or other investments and tangible assets, but, notably, not real estate.

This tax only applies to individuals. However, individuals can be liable for the tax because of their ownership interest in a pass-through or disregarded entity that sells or exchanges long-term capital assets. The tax only applies to gains allocated to Washington state.

There are several deductions and exemptions available that may reduce the taxable amount of long-term gains, including an annual standard deduction of $250,000 per individual. In the case of spouses or domestic partners, the combined standard deduction is limited to $250,000 whether they file joint or separate returns.

Given this high $250,000 threshold, and real estate exemption, there are very few people this filing will apply to.

[Maribeth]

The State of Washington does not appear to have a copy of the Capital Gains Tax Return available for review prior to completing the online filing. However, they do have a couple fairly short tutorial videos to assist with the filing process. This Capital Gains Tax is prepared and filed more like a sales return would be for a business. In order to do the online filing, one first must register for a SecureAccess Washington (SAW) account and then one can register for a Capital Gains Account.

The following link accesses the WA State Dept of Revenue help page specific to the Capital Gains Tax. On the right-hand side of this webpage, are a couple links for accessing tutorial videos for registering a capital gains account and then for filing a capital gains return.

https://www.dor.wa.gov/manage-busine...elp#filereturn