Tax changes starting January 1

The Rhode Island Division of Taxation reminds tax professionals and others about tax changes that will apply in the new year. Some changes take effect immediately (January 1, 2020); others take effect later in the year. Among the subject areas involved:

• Health insurance mandate
• Withholding
• Unemployment insurance tax
• Temporary disability insurance tax
• Estate tax
• Interest rates
• Remote sellers
• Tax credits
• Surplus lines

To read a summary, click here.

Information for employers about withholding

The Division of Taxation has posted the new booklet of income tax withholding tables (used by employers and others to calculate how much to withhold from an employee’s pay in 2020 for Rhode Island personal income tax purposes). Click here to view.

The Division has also posted the new version of Form RI W-4, “Employee’s Withholding Allowance Certificate” (which an employee may use to adjust the amount of Rhode Island personal income tax withheld from the employee's paycheck). Click here to view.

In addition, the Division has posted the 2020 withholding tax payment calendar (which shows payment deadlines for various payment frequencies). Click here to view.

Health insurance mandate kicks in next week

All Rhode Islanders must have qualifying health coverage beginning January 1, 2020. Failure to have such "minimum essential coverage" in 2020 may result in a Rhode Island personal income tax penalty in 2021. So now is the time to plan ahead. To learn more, click here.

Entity-level tax for pass-through entities

The Rhode Island Division of Taxation today posted answers to common questions about the entity-level tax which pass-through entities can elect to pay. To view or download the document, click here.

Publication on 1040H program

The Rhode Island Division of Taxation has posted an updated version of its publication involving the statewide property-tax relief program (Form RI-1040H).

The updated version contains no substantive changes. It includes a reference to a statute, a reference to a regulation, and a new phone number to call regarding certain e-filing matters. To learn more, click here.

Withholding; electronic funds transfer

The Rhode Island Division of Taxation has proposed amendments to a regulation involving employers' withholding (280-RICR-20-55-10) and another regulation involving electronic funds transfer (280-RICR-20-30-1).

The Division would amend both regulations to reflect changes in Rhode Island law that were enacted in July 2019. For example, the new law requires that certain employers submit withholding tax returns and payments by electronic funds transfer or other electronic filing means effective January 1, 2020. The Division also would make clarifying updates to both regulations due to the passage of time. 

The 30-day public comment period expires on January 16, 2020. For more information, click here and here.

At seminar, Division discusses health insurance mandate

The Rhode Island Division of Taxation yesterday took part in a tax preparer seminar -- and, while there, reminded preparers about Rhode Island's health insurance mandate.

The Division was among several organizations and individuals presenting at the Rhode Island Society of Certified Public Accountants' "Annual Tax Forum" held at the Providence Marriott Downtown, a hotel on Orms Street in Providence.

As part of its presentation, the Division noted that all Rhode Islanders must have qualifying health coverage beginning January 1, 2020. Failure to have such "minimum essential coverage" in 2020 may result in a Rhode Island personal income tax penalty in 2021. So now is the time to plan ahead. To learn more, click.

Division holds seminar in Warwick

More than 120 tax preparers attended the Rhode Island Division of Taxation's "Seminar for Tax Preparers" today at the Community College of Rhode Island's Knight campus in Warwick.

The three-hour seminar looked at what's new for the coming tax-filing season, what's new in Rhode Island tax law, and what's new from a tax administration standpoint. Division officials answered preparers' questions and demonstrated online tools.

Some of the tax professionals attending the Division's seminar in Warwick today.

Health insurance mandate takes effect next month

All Rhode Islanders must have qualifying health coverage beginning January 1, 2020. Failure to have such "minimum essential coverage" in 2020 may result in a Rhode Island personal income tax penalty in 2021. So now is the time to plan ahead. To learn more, click here.

Security plan is mandatory for tax preparers

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit today remind tax professionals that federal law requires them to create and follow a written information security plan to protect their clients’ data. For details, click here.

Business identity theft

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit today urged employers large and small to be alert to the growing threat of business identity theft -- and to step up cybersecurity protections. To learn more, click here. 

Use strong passwords, keep them safe, Security Summit says

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit remind taxpayers that using strong passwords and keeping those passwords secure are critical steps in preventing thieves from stealing identities or money -- or using the information to file fraudulent tax returns. To learn more, click here.

Tax Administrator Neena Savage interviewed today by Channel 10's Jared Pelletier about phishing scams.

Reminder: Health coverage mandate starts next month

All Rhode Islanders must have qualifying health coverage beginning January 1, 2020. Failure to have such "minimum essential coverage" in 2020 may result in a Rhode Island personal income tax penalty in 2021. So now is the time to plan ahead.

Most people have minimum essential coverage (through employer-sponsored health insurance, Medicaid, Medicare, TRICARE, or some other means) and will not have to pay the penalty. Rhode Island residents who don't have such coverage can enroll in new health insurance or renew their health insurance through Rhode Island's health insurance exchange -- HealthSource RI. 

For more information, including details about the current open enrollment period and about how eligible Rhode Islanders can receive financial assistance to lower the cost of health insurance, see https://healthsourceri.com/.

• HealthSource RI's open enrollment period began November 1 and ends December 31. But you must pick your plan and pay for it by December 23 in order to get coverage starting January 1, 2020.

Learn to recognize and avoid phishing emails

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit today warned taxpayers to watch out for phishing scams amid the deluge of holiday email messages coming from retailers and others. To learn more, including ways to recognize and avoid the scams, click here.

Holiday shoppers -- beware of ID theft

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit today warned holiday shoppers to secure their computers and mobile phones in order to reduce the threat of identity theft. To learn more, click here.