Can pre-tax dollars also be taken out for state taxes?

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Can pre-tax dollars also be taken out for state taxes?

I live in Michigan and I thought that the pre-tax dollars only applied to Federal taxes. Am I wrong

2007-11-12 05:26:20 · 2 answers · asked by carla f 2 in Business & Finance ➔ Taxes ➔ United States

2 answers

Yes you are.

2007-11-12 05:30:10 · answer #1 · answered by wizjp 7 · 1⤊ 1⤋

No, federal tax withholding, and social security and medicare, are taken out post-tax, not pre-tax. If you itemize, state taxes (NOT federal) can be deducted.

The pre-tax items are things like 401K contributions, and often health care premiums or Flexible Spending Account contributions.

2007-11-12 13:37:48 · answer #2 · answered by Judy 7 · 0⤊ 1⤋