IRS question?

Question

while preparing the tax return should we include the local tax (say NJ ST along with federal tax.
also let me know whether other items like FICA,Medi25 and NJUC along with the total tax paid. WIll the IRS recalculate and arrive at refund amount from our returns

Answer 1

I assume you're itemizing, and working on the tax section of schedule A. Yes, you'd include any local income taxes paid on the line along with state income tax. You don't include social security or medicare taxes anywhere. And you don't include federal tax. If you already filed and included all of these, file an amended return quickly, preferably before the 4/17 deadline to avoid penalties - your taxes would show as such a high number you'd probably get flagged for an audit. The IRS couldn't just recalculate, since your return probably doesn't show enough detail on where your numbers came from for them to figure the correct amount.

Answer 2

Actually "Rob" is only half right (i.e., no reporting of fica and medicare tax); in other words federal taxes aren't deductible.

You are allowed to deduct the state and local (if NJ has local) income tax on the Schedule A under the section "Taxes You Paid." You can also deduct real estate taxes and other misc as allowed. This is of course if you can use the Schedule A. If you use the "standard deduction" (rather than itemize on the Sch A) then you can't use this benefit.

Answer 3

On the Federal return, you would only report the Federal Withholding,
On the State return you report the State withholding

You do not include the SS or Medicare tax (Fica) Unemployment withheld from either return