Live in NH, work in MA. Can I deduct MA state income tax on federal return?

[Matt034]

I live in NH and work in MA which means I pay MA state income tax. Can I deduct the MA state income tax on my federal return if I itemize deductions?

[AnnetteB6 · Accepted solution]

Yes, you can deduct any state income tax that you paid as part of your Federal itemized deductions.  It does not matter if it is your resident state or another state.

However, keep in mind that since you are filing a 2021 tax return, you will be deducting only state income taxes that were paid in 2021.  If you have a MA state balance due on the return you are working on now, then that amount may be deducted on your 2022 tax return since the balance will be paid in 2022.