about what percentage of state income tax can I deduct from my federal income tax?

Answer 1

I have no clue what JQT meant..............but she meant well.

You have to realize that we, as individuals, are CASH BASIS tax payers. So however much you paid or had withheld in 2006 in State income taxes, State Disability tax, Local tax, or 2005 state income taxes paid in 2006 are all deductible. If you owe anything for 2006 and pay it in 2007, it's deductible in 2007.

Please note though, these are only deductible on your Federal tax return if:

1) you itemize your deductions
2) you are not in Alternative Minimum Tax. if you are, then a portion of it will not be deductible.

Answer 2

It has been a while since I lived in a state that has income tax, but I believe the answer is none.

It is the state income tax that takes federal income tax into consideration but not the other way around. We can't have tax law that has state income tax dependent on the federal tax and vice versa all at the same time. Then which one do you do first!

You need to figure out your federal income tax first. Then do your state income tax. It is in the state forms that will ask about the amount of federal income tax.

Parts of state tax that are deductible on Schedule A are: real estate tax, property tax, tangible tax etc. For a list of deductible state and local tax, check out IRS publication http://www.irs.gov/instructions/i1040sa/ar01.html#d0e374

Best wishes.

Answer 3

If you take standard deduction then you can not take any credit for state income tax. If you itemize your deduction then you can include all the state and local taxes in the deductions.

Answer 4

In USA Your state Tax is not a deduction from the total Income to increase your return from your federal Taxers.

Answer 5

income tax will depend on how you file your W-4 with your employer, no one here knows that otherwise currently 5.65% will be withheld for FICA and 1% for CASDI

Answer 6

I too would like to know the answer to this question...