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chevdice
New Member

Local income taxes paid did not decrease my Federal tax due. Same with my business expenses.

I input my local estimated taxes paid in 2016, for the 2016 tax year, but did not get a decrease in my Federal taxes due.  I'm in the transportation business and also input un-reimbursed business expenses, but did not receive a deduction to Federal taxes either.  Both situations in previous years lowered my Federal taxes.

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Local income taxes paid did not decrease my Federal tax due. Same with my business expenses.

You likely did not break the threshold to itemize deductions. You either receive an automatic standard deduction based on your filing status or you itemize your deductions if over that amount (where these local taxes and reimbursed expenses are claimed)

For single filers, the automatic standard deduction amount is $6,300 and married filing jointly is $12,600. This means that in order to itemize your deductions, you would have to exceed these amounts. In addition to that threshold, the unreimbursed employee expenses are subject to a separate limitation. The amount that can be claimed is over 2% of your adjusted gross income. If the total is under 2%, you receive no benefit. 

FYI- additional items which are a part of your total itemized deductions include mortgage interest, personal property taxes and charitable contributions. 

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2 Replies

Local income taxes paid did not decrease my Federal tax due. Same with my business expenses.

You likely did not break the threshold to itemize deductions. You either receive an automatic standard deduction based on your filing status or you itemize your deductions if over that amount (where these local taxes and reimbursed expenses are claimed)

For single filers, the automatic standard deduction amount is $6,300 and married filing jointly is $12,600. This means that in order to itemize your deductions, you would have to exceed these amounts. In addition to that threshold, the unreimbursed employee expenses are subject to a separate limitation. The amount that can be claimed is over 2% of your adjusted gross income. If the total is under 2%, you receive no benefit. 

FYI- additional items which are a part of your total itemized deductions include mortgage interest, personal property taxes and charitable contributions. 

chevdice
New Member

Local income taxes paid did not decrease my Federal tax due. Same with my business expenses.

My itemizations exceeded the standard deductions for my wife and I, but after doing some further research, I was able to determine that our income limited the amount that I could itemize.
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