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Heard you can claim state tax paid on your federal taxes. Whats that about

 
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Heard you can claim state tax paid on your federal taxes. Whats that about

Yes.  If you itemize deductions instead of taking the Standard Deduction you can deduct any state taxes actually paid in 2019.  Like your paycheck withholding and any state tax paid like a tax due on your 2018 return last year.

 

State and local taxes paid are:

-any state withholding from your paychecks, retirement checks, unemployment checks, etc.

-a state tax due (for any year) you paid last year

-any state estimated tax payments you made during year including an overpayment applied from last year

-any local taxes withheld on your checks like SDI in box 14 or 19 on your W2

 

But there is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT".  SALT is State And Local Tax.  And since the Standard Deduction is a lot higher now more people are switching to the Standard Deduction.

 

For 2019 the standard deduction amounts are:

Single 12,200 + 1,650 for 65 and over or blind

HOH 18,350 + 1,650 for 65 and over or blind

Joint 24,400+ 1,300 for each 65 and over or blind

Married filing Separate 12,200 + 1,300 for 65 and over or blind

 

 

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Heard you can claim state tax paid on your federal taxes. Whats that about

Yes.  If you itemize deductions instead of taking the Standard Deduction you can deduct any state taxes actually paid in 2019.  Like your paycheck withholding and any state tax paid like a tax due on your 2018 return last year.

 

State and local taxes paid are:

-any state withholding from your paychecks, retirement checks, unemployment checks, etc.

-a state tax due (for any year) you paid last year

-any state estimated tax payments you made during year including an overpayment applied from last year

-any local taxes withheld on your checks like SDI in box 14 or 19 on your W2

 

But there is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT".  SALT is State And Local Tax.  And since the Standard Deduction is a lot higher now more people are switching to the Standard Deduction.

 

For 2019 the standard deduction amounts are:

Single 12,200 + 1,650 for 65 and over or blind

HOH 18,350 + 1,650 for 65 and over or blind

Joint 24,400+ 1,300 for each 65 and over or blind

Married filing Separate 12,200 + 1,300 for 65 and over or blind

 

 

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