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Yes, State Income Taxes are deductible against Federal income; not the amount you owe the state, but the amount you actually paid through withholding, prior year credits, payments with the prior year state return, and/or estimated payments, during the calendar year for which you are filing Form 1040.

You must file a 1040 Schedule A, Itemized Deductions in order to claim either state income tax or state salestax on your return. Your total itemized deductions need to be greater than your Standard Deduction to be of benefit to you.

If you file a Form 1040, and itemize deductions on Schedule A, you have the option of claiming either state and local income taxes or state and local sales taxes. (You can't claim both.) If you saved your receipts throughout the year, you can add up the total amount of sales taxes you actually paid and claim that amount.

If you didn't save all your receipts, you can still choose to claim state and local sales taxes. You can even use the Sales Tax Deduction Calculator to figure how much state sales taxes you can claim if you decide to go that route.

Using the Sales Tax Deduction Calculator

To figure the amount of optional general sales tax you are eligible to claim, just answer a few online questions and the system does the rest.

First select the year you are filing taxes for. Then, using your ZIP Code and just a few entries from your draft Form 1040, the Sales Tax Deduction Calculator will automatically figure the amount of state and local sales tax you can claim. You will see the results from your entries immediately on your computer screen. Even if state and local sales tax rates changed during the year (e.g., due to changes in state and local rates or because you moved your personal residence), the Sales Tax Deduction Calculator can handle it.

Your entries are anonymous and the information is collected solely to allow you to determine your total allowable deduction. All entries are erased when you exit or start over.

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Q: Are state income payments deductible on federal taxes?
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Related Questions

Are income tax payments deductible?

State income tax payments are deductible on your federal income tax return. (You may deduct state income tax or sales tax, but not both.) Federal income tax payments are deductible on your state tax return in a tiny number of states.


Are state income tax payments deductible on a corporate tax return?

Yes. State income (and net worth based) taxes are deductible from taxable income for Federal income tax purposes.


Is there a Federal deduction for state back tax payments?

State income taxes are deductible from Federal taxable income in the year they are paid, regardless of when they were due.


If you paid 765 dollars this year in federal tax payments that were owed for a previous year is this your deductible?

Federal taxes paid or payable, (even if paid in the current year), aren't deductible in calculating your federal taxable income. State income tax payments may be deductible in determining your federal tax taxable income. And refunds received of a prior years State income tax may therefore be included in the current years federal taxable income.


Are state income tax payments deductible on federal form 1120?

State income taxes are deductible on the Federal Form 1120. Other deductions include repairs, interest, and depreciation for homeowners filing Form 1120.


Are state income payments deductible on federal taxes for corporations?

Yes, (and individuals). For Corps it is the amount paid (not accrued).


Are payroll taxes at a corporate level deductible on Federal form 1120?

All state and local taxes as well as FEDERAL PAYROLL TAXES are deductible when incurred on property or income relating to business. But, FEDERAL INCOME TAXES are not deductible. and Yea they are deductible on form 1120. Hope tht helps!


Are state taxes deductible for federal corporate income taxes?

Yes, most state taxes are going to be deductible for federal taxes. Consult the tax manuals or your tax preparer for more information.


Will Georgia tax your Federal rebate money?

No. Your federal tax is not deductible from your income in determining state taxable income, hence any refund of it isn't included as taxable income.


How many years can you deduct state income payments from your federal taxes?

20


Can you Deduct tax payments from the previous year?

Yes, unless it's been past three years. They have five years to eat you alive though. For the previous year -as below...from the previous year (as in made then) - even if applicable, no, only in the year they are paid. File an amended. State Tax payments are deductible from Federal, when paid. Federal Tax Payments aren't deductible from State, or from Federal for that matter, regardless of when they are paid.


Can federal taxes withheld be tax deductible?

You cannot deduct withheld federal taxes on your federal income tax return. There are some states that allow the deduction of withheld federal taxes on the state income tax return.


Is there an income tax on treasuries?

Interest payments on Treasuries are subject to federal income tax, but not state income tax. If you buy and sell Treasuries, any capital gains are also subject to federal and usually state income taxes.


What types of taxes paid are not allowable deductions on your tax return?

Federal income taxes are not deductible on your federal or state income tax return. http://small-business-tax-info.com


Can NYC tax withholding be claimed on my tax returns?

If you itemize on your federal income tax return, City and State income taxes paid are deductible on your return.


Is rent tax deductible in Massachusetts?

Rent for business purposes is deductible from your business income for both federal and state purposes. Rent for your personal use is not federally deductible. There is a rent deduction of up to $3000 ($1500 married filing separately) for Massachusetts state taxes.


Are federal corporate income taxes deductible for state income taxes?

In general, states do not allow a deduction for federal income taxes as most states "piggyback" off of federal taxable income as the beginning of the state income tax calculation. However, the states of Alabama , Iowa , Louisiana , and Missouri have variations of state taxable income that allows for some potential deduction for federal income taxes. Each of these four states has its own unique methodology for the deduction and each place certain restrictions on the ability to take the deduction.


How much tax if any can you deduct on your federal and or state income tax?

Obviously, tax isn't deductible from determining the income that is taxable, for the same tax involved. There is no limit to the amounts. Generally: Federal - State (and city) income taxes and property taxes, (and under a new rule some sales taxes if your in a state without property tax), and of course a plethora of the payroll type taxes may or may not be currently includable in determing Federal taxable income. State Income taxes do not allow their own State (and sometimes other States) taxes to be deducted...essentially you add them back to your Federal Taxable Income. They may also consider some things like Unemployment Ins payments (and other payroll taxes) differently than the Feds. Also generally, to be currently deductible, the tax must have been paid to the jurisdiction, not just what you expect to pay.


If you work in multiple states and pay taxes in multiple states should the sum of your individual state taxable incomes agree with the amount of your federal taxable income?

AnswerI believe so.AnswerNo - even if you work in only one state your State taxable (or gross) income will virtually never equal your Federal taxable (or gross)income. For many reasons. Like State tax is deductible from Federal, but not from itself! Some contributions or types of income too, (like retirement plans, some types of SUI, FICA, etc.), are deductible for one of the taxes, not the other. Etc.In the multi state sceanario you mention - also consider - if you had income in 3 States...one of which doesn't even have an income tax. Hence, no State Taxable income. The remaining two incomes better not equal your Federal.


Can state income be higher than federal income?

Yes. example: Federal allows certain deduction from your wages (sec125 healthcare, transportation,). In New jersey those payments must be added back - they don't allow for those deductions Happens almost always. Just to start, STATE income tax paid is a deduction from FEDERAL income, but not from state income obviously (that would be circular).


Is the value added tax deductible as a sales tax on federal income tax returns?

I don't believe that any state has VAT. To answer your question, no VAT is not deductible as Sales Tax on Schedule A of the 1040 Form.


Can you deduct wage garnishments from your federal and state income that is reported to the IRS?

No. Garnishments are just payment of a debt that you owe and haven't paid. This is not a deductible item.


I had to pay money to state and federal last year. Can that money be claimed on this years taxes?

how much is $60 add tax You can deduct the 2009 State Taxes you paid in 2010 on Schedule A (if you itemize). Federal tax payments are not deductible according to the IRS Website


When is tax payment due if already filed?

The federal income tax payment and most state income tax payments for 2008 are due today, April 15, 2009.


Can medical bills be taken out of Federal Income tax returns in the state of South Carolina?

Yes and the state doesn't matter on federal income tax returns. Federal is federal and state is state.