280-20-55 R.I. Code R. § 6.7

Current through June 20, 2024

Section 280-RICR-20-55-6.7 - Computation

A. A fiscal year taxpayer whose tax years involve calendar periods for which there was no change in the Rhode Island personal income tax rate need only determine the proper Federal income tax liability with any appropriate Rhode Island modifications.

B. A fiscal year taxpayer whose tax years involve calendar periods for which the Rhode Island personal income tax rate changed should compute the Rhode Island personal income tax in the following manner:

1. Determine the proper Federal income tax liability with any appropriate Rhode Island modifications.

2. Determine the rates for the Rhode Island personal income tax in effect during the taxpayer's fiscal year and the number of months for which the rates were in effect.

3. Calculate the fiscal period rates for each rate change: (Number of Months Rate was in Effect x Rate)/12

4. Multiply each fiscal period rate by the Federal income tax liability and add the resulting amounts to determine the proper Rhode Island personal income tax liability.

5. Fiscal year taxpayers should then show this amount as the Rhode Island tax liability on the appropriate line of the Rhode Island return and attach a schedule showing the computation details. Taxpayers should not enter any amount in the space provided for Federal tax liability on the Rhode Island Return.

280 R.I. Code R. § 280-RICR-20-55-6.7