About States With No Income Tax

Series Summary

Taxes are financial charges or other levies imposed on an individual or a legal entity by a state or a functional equivalent of a state. Tax collection is performed by a government agency, such as the Internal Revenue Service in the United States. When taxes are not fully paid, fines, forfeiture or incarceration may be imposed on the non-paying entity or individual. Funds provided by taxation have been used by states and their functional equivalents throughout history for expenditures on war, the enforcement of law, protection of property, economic infrastructure, public works and the operation of government itself. In this free video series on personal finance, an IRS tax agent discusses the process of paying taxes. Get information about filing as a military personnel, and discover which forms are appropriate to file. Learn about filing taxes as a self-employed individual, and learn about states with no income tax. Keep accurate financial records for an easier filing process.

Video Transcript

"Hi, I'm Shirley from Fast Tax Services. We're located in Los Angeles. I am an enrolled agent which means I'm enrolled with the IRS for taxation. My associate Robin is licensed by the state of California. In this segment we will talk about states with no income tax. The 7 states are Texas, Nevada, Washington State, Florida, Alaska, South Dakota and Wyoming. All the other states have taxes. And when you file your taxes each year with one of those seven states you only have to file the 1040, the 1040a or the 1040ez. You do not have to file anything for those states. Thank you very much."