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Is state income tax or sales tax deductible on my tax return? |
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Taxpayers can take a deduction against their income for the sales tax and state income tax paid on their federal income tax return through the itemized deduction method. The amount of state income tax that you can deduct on your return can be found on your W-2s for the tax year, as well as other information returns, such as a 1099-Misc or 1099-R. If you owed and paid state income tax for a prior tax year, then those taxes are also deductible, as well as state and local sales tax. You can elect the actual expenses method or use the optional sales tax table for your particular municipality. These taxes are deducted on Schedule A of Form 1040. |
