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Tax Deduction Consulting: State Tax on Schedule A Brigham City UT

The taxes you pay to your State are deductible when you itemize on Schedule A, but you should be aware of the Sales Tax deduction as well.

Mr. A. Wayne Margetts (RFC®), LUTCF
(801) 532-1871
175 S Main St, Ste 1050
Salt Lake City, UT
Company
LPL
Qualifications
Education: BSc (Math)MBA
Years of Experience: 16
Membership
IARFC, MDRT, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Charitable Foundations, Asset Protection, BuySell, Compensation Plans

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H&R Block
(435) 725-3335
855 E 200 N STE 112-3
ROOSEVELT, UT

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H&R Block Premium
(801) 355-4649
888 S 200 E STE B
SALT LAKE CITY, UT

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H&R Block
(801) 255-3231
7065 S STATE ST
MIDVALE, UT

Data Provided by:
Liberty Tax Service
(866) 871-1040
1132 E 3300 S
Salt Lake City, UT

Data Provided by:
Mr. Gregory W. Williams (RFC®), CFP, CHFC, CLU, LUTCF, MSFS
(801) 453-2271
6340 South 3000 East, Suite 500
Salt Lake City, UT
Company
Exit Strategy Specialists, LLC
Qualifications
Years of Experience: 26
Membership
IARFC, MDRT, FPA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Business Coach, Charitable Planning, Education Plan, Asset Protection, BuySell, Compensation Plans

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H&R Block
(801) 832-8932
2356 S FOOTHILL dr
SALT LAKE CITY, UT

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H&R Block
(435) 462-2785
750 S STATE ST
MOUNT PLEASANT, UT

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H&R Block
(801) 225-4018
738 S STATE
OREM, UT

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H&R Block
(801) 546-3091
27 S FORT LN
LAYTON, UT

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Tax Deduction Consulting: State Tax on Schedule A

Deduction - State Tax on Federal Schedule A

The taxes you pay to your State are deductible when you itemize on Schedule A, but you should be aware of the Sales Tax deduction as well.

It makes sense that you would be able to deduct your State Income Tax from your Federal Tax liability. If you had to pay Federal Taxes on the income that went to pay State Taxes that would amount to double taxation on the same amount. So, as long as you are not claiming the standard deduction and itemizing your deductions on Schedule A, your State Tax paid is a valid deduction.

If you get a refund from your State Taxes, the amount of the refund will be considered taxable income for the next year. Once again, this is one of the more logical points to figuring deductions. Basically, a refund of State taxes is because you overpaid the tax and the State is simply returning the overpayment. Therefore this amount was not taxed by the State and will be taxed by the IRS.

A recent change in the law has allowed the option of claiming State and Local Sales Tax in lieu of claiming the State Income Tax. This is an either/or deal. You can claim one or the other, but not both. If you save every single sales receipt for the entire year, you can add up the total amount of Sales Tax actually paid and use that figure. Since most people do not save every receipt, there is a Schedule that gives you the figure you can use based on your income and exemptions.

This law has been a boon to those in States w...

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