PROVIDENCE – It’s that time of year again – tax season.
The R.I. Department of Revenue on Monday began accepting Rhode Island resident and nonresident tax returns, as well as business returns for the 2019 tax year. The deadline to file is April 15.
The department also reminded filers of a few changes they might encounter when filing their taxes this year.
The department said that due to inflation adjustment, more taxpayers will be eligible for a tax break for income from 401(k) plans, pensions annuities and other various sources. Also due to inflation adjustments, more taxpayers will be eligible for the tax break for income from Social Security benefits.
There has also been an increase in the statewide property-tax relief credit, the department noted.
DOR encourages electronic filing this year, noting that it’s faster, less prone to error and is the only option in which the state can deposit refunds directly into bank accounts.
The department also noted that the deadline for certain pass-through entities would have been March 15, but since that falls on a Sunday this year, that deadline is March 16. Pass- through entities may elect to pay an entity-level Rhode Island tax at a rate of 5.99% on net income this year, following legislation signed into law last July. Commonly asked questions on this change may be found online.
DOR also reminded that the Rhode Island health insurance mandate went onto effect Jan. 1, requiring all Rhode Islanders to have health insurance, which may result in a tax penalty in 2021 for the 2020 tax year.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
Want to share this story? Click Here to purchase a link that allows anyone to read it on any device whether or not they are a subscriber.