Latest newsletter now available

The Rhode Island Division of Taxation’s latest newsletter includes information about the following topics:

• The new health insurance mandate
• Changes involving employer withholding tax
• A new chief for Personal & Corporate Income Tax
• Temporary disability insurance (TDI) tax
• Unemployment insurance (UI) tax
• Estate tax
• Q&A about the entity-level tax on pass-through entities
• Reminders for LLCs – including single-member LLCs

To view a copy, click here.

Guide to tax break on income from pensions, annuities, other sources

The Rhode Island Division of Taxation has updated its guide to the Rhode Island tax break on income from pensions, annuities, and certain other sources. To view, click here.

Notice posted on tax-exempt interest

The Rhode Island Division of Taxation has posted a Notice intended to aid tax preparers and taxpayers in determining whether interest from certain obligations is subject to income tax in Rhode Island. To view, please click here.

To avoid penalty, obtain health insurance coverage

If you don't have health coverage this year, and you don't qualify for an exemption, you'll face a penalty on your Rhode Island tax return in 2021. To learn about your health insurance options, see the website of Rhode Island's official health insurance marketplace: HealthSourceRI.com.

Rhode Island's health insurance mandate took effect on January 1, 2020. To learn more about the mandate and how it may apply to you, see the Rhode Island Division of Taxation's webpage on the mandate by clicking here. Also see answers to frequently asked questions by clicking here. 

Tax on beverage containers, hard-to-dispose materials

The Rhode Island Division of Taxation has posted an amended regulation involving the tax on hard-to-dispose materials and the tax on beverage containers.

The regulation (280-RICR-20-45-2) has been amended mainly to reflect tax increases that were enacted in July 2019. One increase was for the tax levied on each case of beverage containers sold by beverage wholesalers. The other increase involved a tax that is levied on hard-to-dispose material, such as lubricating oils, antifreeze, and tires.

The regulation, as amended, is to take full effect on March 12, 2020.

Reminder: File your returns at no charge

Many taxpayers can file their federal and Rhode Island personal income tax returns online, at no charge, through the Free File programs on the Rhode Island Division of Taxation website.

Interested? Go directly to the Division's Free File page by clicking here.

For more information about the program, click here.

Division of Taxation is open on Monday

The Rhode Island Division of Taxation reminds taxpayers and tax preparers that the Division will be open as usual on Monday, February 17, 2020 (a federal holiday). For more information, click here.

Division of Taxation is located in Powers Bldg., Providence, R.I.

Tax expenditure report

The Rhode Island Office of Revenue Analysis has posted the 2020 edition of its report on tax expenditures.

The report provides details on the amount of revenue forgone mainly due to tax credits, tax deductions, tax exclusions, tax exemptions, and tax modifications. The 435-page report draws on data provided by the Division of Taxation. To view the report, click here.

Newsletter with tips for tax season

The Rhode Island Division of Taxation has posted a special edition of its newsletter, focusing on the current tax-filing season (see screenshot below).

Among the topics:

• Entity-level tax on pass-through entities
• April 15 personal income-tax deadline
• Notices from remote sellers
• Form 1099-G
• Earned income credit
• Tax break on pension/401(k) income
• Tax break on Social Security benefits
• Filing tips
• U.S. Form 1040-SR
• Free File program
• Property-tax relief credit - Form 1040H

To view a copy, click here.

Pass-through entity election

The Rhode Island Division of Taxation has created a webpage to hold key forms related to the entity-level tax that pass-through entities may elect to pay.

The page includes Form RI-PTE (“Pass-through Entity Election Tax Return and Instructions”) as well as the Form 1099, payment voucher, estimated payment form, and extension form related to the entity-level tax.

• To view the new webpage, click here.
• To learn more about the new voluntary tax, click here.

Scheduled maintenance on Sunday

The Rhode Island Division of Taxation website, portal, and email system will be unavailable on Sunday, February 9, 2020, from about 7:00 p.m. to about 10:00 p.m. Eastern Time, due to scheduled  maintenance. There should be no impact on Monday services.

Comment period extended for regulations

The Rhode Island Division of Taxation has provided a brief extension to the comment period involving proposed changes to the following two regulations:

• "Employers’ Withholding" (280-RICR-20-55-10)
• "Payment of Taxes by Electronic Funds Transfer" (280-RICR-20-30-1)

The Division had proposed that the comment period end on February 29. But because that date falls on a weekend, the Division has extended the deadline to March 2. If no objection is received by then, the regulations will take effect.

• These are existing regulations. The Division has made minor changes to the one on EFT. The one on withholding has been amended to simplify the withholding process and to bring Rhode Island more in line with practices at the federal level and in other states.