I am doing my taxes by myself for the first time, and I heard somewhere that your state income taxes can be a write off on your federal income tax. Is that true?
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I am doing my taxes by myself for the first time, and I heard somewhere that your state income taxes can be a write off on your federal income tax. Is that true?
Count Your Blessings says:
only if you itemize deductions .. see instructions to Schedule A
February 23, 2010, 1:51 pmvan_wyhe says:
If you itemize (see if your itemized deductions on 1040, Schedule A exceed your standard deduction, which is $10,700 for married filing joint, $7850 for head of household, $5350 for single or married filing separate in ‘07), you may deduct EITHER state and local income taxes OR your state and local general sales taxes. You cannot deduct both. You make your election on line 5 of Schedule A by checking box a for income taxes or box b for general sales taxes. The option to claim sales taxes instead of income taxes will not be allowed following 2007 unless Congress extends the law permitting this option.
February 23, 2010, 1:56 pmSpock (rhp) says:
Yes. You have the option to deduct EITHER your state and local income taxes OR your sales tax (based on a table, unless you have receipts for everything).
February 23, 2010, 1:58 pm