topic Is state tax and lical income tax taxable? in State tax filing

Is state tax and lical income tax taxable?

double_go — Sat, 01 Jun 2019 02:05:17 GMT

State and local income taxes paid (or withheld from your...

MichaelMc — Sat, 01 Jun 2019 02:05:18 GMT

State and local income taxes paid (or withheld from your pay) during 2016 are deductible only if you itemize deductions.

Refunds of prior year state and local income taxes received during 2016 are taxable income, only if you itemized deductions in the prior year to which the refund relates.

If you take the standard deduction, state and local income taxes will have no impact on your federal income tax.

Thank you and i want to ask what it means to itemize dedu...

double_go — Sat, 01 Jun 2019 02:05:20 GMT

Thank you and i want to ask what it means to itemize deductions

Taxpayers are entitled to a Standard Deduction which redu...

MichaelMc — Sat, 01 Jun 2019 02:05:23 GMT

Taxpayers are entitled to a Standard Deduction which reduces their taxable income. In 2016, the Standard Deduction is $6,300 for filing status Single or Married Filing Separately, $12,600 for Married Filing Jointly, and $9,300 for Head of Household. Taxpayer who have large medical expenses, mortgage interest, real estate taxes, charitable contributions, and other qualifying expenses may choose to "itemize" these deductions and receive a greater reduction of taxable income than that allowed by the Standard Deduction. If this describes your situation, you can enter these expenses through the TurboTax interview, and TurboTax will determine whether the standard or itemized deduction is right for you.