Does the Sales tax and State Income tax deduction pertain to the State of residence or can another State non-residence income tax be factored in for this deduction?

res1946 · ‎June 4, 2019

My residence is in Las Vegas, NV. Nevada does not have state income tax but is does have sales tax. In addition, I receive gas and oil royalties from the state of North Dakota for which I pay income tax on. My question is: Is the state income tax deduction or sales tax deduction considered on your state of residence or in my case, is the non-resident state of North Dakota income tax considered as part of the overall deduction consideration for this deduction?

RichardG · ‎June 4, 2019

IRS rules permit you to deduct either state income taxes or state sales taxes. The income taxes paid to North Dakota count when adding up your total state income tax for the year. But unless you paid a large sum in North Dakota tax, you're going to get the state sales tax deduction based on your location in Nevada.

Does the Sales tax and State Income tax deduction pertain to the State of residence or can another State non-residence income tax be factored in for this deduction?

State tax filing