Filing taxes related to capital gains made in Washington State.

You may need to submit a Washington state capital gains tax return along with your 2022 federal tax return, in the case that you have gained more than $250,000 from long-term capital gains while being a resident of the state. This must also be done if you are not a resident, but have still earned more than the specified amount inside Washington. This can be a difficult and complicated process, but it's important to understand it.

The filing of this return is only necessary if the capital gains tax is to be paid, and this is different from the way other states and the federal government work when it comes to income tax. Similarly, the approach varies from other excise taxes such as the Washington state estate tax and business and occupation tax.

In order to file the Washington state capital gains tax return, taxpayers must make use of the SAW system. This involves creating a SAW account, registering a capital gains account, and adding the tax accountant as a user. Following this, the tax accountant can prepare the return, after which it must be reviewed, and then both the return and the capital gains tax can be filed.



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If your long-term capital gains from 2022 exceed $250,000 and you are a resident of Washington state, you must file a Washington state capital gains tax return. Furthermore, if your long-term capital gains exceed this amount and you are not a resident but earned them within Washington state, you must also file this return. The process is complex and time consuming, so it is important to be aware of the details. If you are able to utilize any of the exemptions or deductions, you may not be required to file. This is different from many other state's income taxes that require you to file even if you don't owe anything due to credits or deductions. Moreover, the way Washington State handles estate tax returns and other excise taxes, like the business and occupation tax, is also unique. To file the capital gains tax return, you must set up a SAW account and add your tax accountant as an 'Administrator' user. After the return is complete, you must review it and then file and pay the capital gains tax.

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