Suggestions

:speech_balloon:

Tax overhaul - Specify which income types are subject to state tax in the US (and international cases)

A framework for specifying applicability of different taxes to specific income streams.

E.g. Pension Distributions (DB, 401k, ira, even roth conversions) are not taxable in several states. Having the ability to say this income stream is not state taxable would be pretty significant. And this idea could be generic to international cases as well, where folks are specifying multiple layers of taxation. Canada is the obvious analog, where they have national tax and provincial tax brackets. I don’t think (at least I don’t know) if there are such cases in Canada, but other countries may have this concept.

I think the US case is probably more straightforward to implement. You could do it from the tax settings section itself, since you have full knowledge of the different income types. Basically you’d be creating a checklist of “these income types are subject to state tax”. But in theory you could also specify an override on the Income item itself, if you’re using Custom Income for example.

If you had this framework in place, you could then take the next logical step and implement state-by-state defaults. But first iteration, I’m thinking just allow users to configure it.

5 votes

Tagged as Suggestion

Suggested 14 March by user Shawn S