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Ten States Tie to Federal Standard or Itemized Deduction Usage
Impact: A rise in state income tax revenues
At least ten states mandate that a state tax filer use the same standard or itemized deduction method as they use on their federal return (Georgia, Kansas, Maine, Maryland, Nebraska, New York, North Carolina, Oklahoma, Utah, and Virginia). More taxpayers are expected to use the standard deduction instead of itemized deductions. If that occurs in these states, state taxable income will rise because in all four of these states the state standard deduction amount is lower than the federal standard deduction.
https://community.nasbo.org/blogs/john-hicks/2018/01/08/new-federal-tax-law-individual-state-conform...
Under Georgia law individual taxpayers may not itemize deductions unless they do so on their federal income tax return. For example, if a married couple has $20,000 of itemized deductions, they would likely claim the $24,000 standard deduction on their federal return because it exceeds their itemized deductions. However, if they did so, they would have to use the $6,000 standard deduction in Georgia even though it’s much lower than their $20,000 of itemized deductions. This is just one example of the many complicated decisions taxpayers will have to make under the new federal and state tax changes.
https://www.taylorenglish.com/newsroom-alerts-georgia-general-assembly-reduces-state-income-taxes.ht...
