PROVIDENCE – Rhode Island families with children will automatically receive a $250 payment per child under a one-time program included in the state’s fiscal 2023 budget.
The R.I. Department of Revenue recently issued a memo outlining the host of tax changes that came out of the 2022 legislative session or were part of the budget for the year that began July 1.
Among them, the child tax credit, which offers rebates to any taxpayers with children under 18 years old as of Dec. 31, 2021. Recipients must earn $100,000 or less for a single-income household or $200,000 or less for a two-income household.
The payments are part of a set of tax incentives and payments added during the final budget process thanks to a higher-than-expected surplus from the prior year.
Other changes to come from the budget or legislature, as outlined by the Department of Revenue, include:
- A state income tax break for military service pension recipients, who as of Jan. 1 can subtract the amount of their military pension benefits from their income that would be subject to state taxes.
- A state income tax break that increases from $15,000 to $20,000 the amount of income from private sector or government pensions or defined contribution plans such as 401(k)s that can be exempted from state income taxes.
- Cutting the interest rate for late tax payments to 12% (down from 18%) for tax periods beginning in January. This does not apply to trust fund taxes such as sales tax, hotel tax, meal and beverage taxes, and withholding taxes.
- Exempting from sales and use tax the following: breast pumps and related supplies, funeral items and trade-in values of motorcycles.
- Requiring businesses with at least $100,000 in income or $5,000 in tax liability to file tax returns and payments electronically.
For a full list of tax changes, visit dor.ri.gov.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
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