I am self-employed and paid estimated State and Local NY taxes (incl UBT). After completing Federal form, TurboTax said the Standard deduction was the best choice. I just want to confirm that "0" is the correct number for "Business Income or UBT Taxes Deducted on Federal Return". Since I am using the "Standard deduction" on the Federal form, there were no State or Local (incl UBT) taxes deducted on the Federal return.
Am I interpreting that correctly?
Thanks.
Yes, you are. Any estimated tax payments you made for the state will still be deducted on your state return, as part of your payment for 2018 tax. For the Federal, though, the only way to deduct state tax is to itemize deductions. If you take the standard deduction then you have no deduction for state taxes on your federal return. That can be a good thing next year because, if you receive a state tax refund for 2018, it will not be taxable in 2019.
Yes, you are. Any estimated tax payments you made for the state will still be deducted on your state return, as part of your payment for 2018 tax. For the Federal, though, the only way to deduct state tax is to itemize deductions. If you take the standard deduction then you have no deduction for state taxes on your federal return. That can be a good thing next year because, if you receive a state tax refund for 2018, it will not be taxable in 2019.