Tax Quiz – How well do you know tax facts?

As April is tax month, included here is a short quiz to see how well you know your taxes. Since everyone tends to think they have it worse than their neighbors, this year’s quiz revolves around state imposed taxes. Enjoy!

Check Can you name the seven states that impose no individual income taxes?
Answer The seven states with no individual income taxes are: Alaska, Florida, Texas, Wyoming, South Dakota, Washington, and Nevada.

Check If you live in this state, your state government actually sends you a check each year. Can you name the state and the amount of the check you would receive for 2013?
Answer The state that provides a check to its residents each year is Alaska. Qualified residents in 2013 received $900 as an Alaska Permanent Fund dividend. The amount of the check depends on the income received in the fund. In 2008, residents received a record $2,069. The fund was originally established in 1976 as a means to save 25% of the oil revenue from the Trans-Alaska Pipeline System. The idea was to have funds for future generations when the resource would no longer be available.
Federal Income Tax Quiz

Check Seven states have no individual income taxes. Can you now name the seven states with the highest marginal state individual income tax rate in 2013?
Answer Here they are in order of highest to lowest:
#1 California (13.3%), #2 Hawaii (11.0%), #3 Oregon (9.9%),
#4 Minnesota (9.85%), #5 Iowa (8.98%), #6 New Jersey (8.97%), #7 Vermont (8.95%)

Check State tax burdens include a combination of many types of tax including income taxes, corporate taxes, property taxes, sales tax, excise taxes and other taxes. Per the nonpartisan group, Tax Foundation, what seven states tax their citizens the most as a percent of their state sourced income?
Answer Here they are ranked from the highest level; #1 New York: 12.6%, #2 New Jersey: 12.3%, #3 Connecticut: 11.9%, #4 California: 11.4%, #5 Wisconsin: 11.0%, #6 Minnesota: 10.7%, and #7 Maryland: 10.6%.Source: taxfoundation.org. Please see their reports for more information and their methodology for their findings.

Check Can you name the state that recently became the first state in the U.S. to tax gifts?
Answer Minnesota. There is a long-standing gift giving tax on the federal level if an individual gives more than $14,000 to any one person ($28,000 for a married couple) in a single year. But until 2013, no state imposed this tax. Minnesota’s law requires gifts made within three years of death be considered part of your estate and subject to potential estate taxes. Thanks Minnesota. Will others follow suit?