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Tax Deduction Consulting: State Tax on Schedule A Hockessin DE

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.

Keith Al-Chokhachy, Certified Financial Planner(tm)
2751 Centerville Road
Wilmington, DE
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Title: Certified Financial Planner"
Company: Morgan Stanley Smith Barney
Years Experience
Years Experience: 8
Service
Captive Insurance,Life Settlements,Pension for Highly Compensated Owners,Stock Market Alternative,Wealth Management,Health Care Insurance,Retirement Planning,Real Estate Investment Planning,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Hourly Financial Planning Engagements,Fee Only Portfolio Management,Wealth Engineering,Mortgage Refinancing,IRA, 401k, Roth IRA, QDRO Rol

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Joan L. Sharp (RFC®), CFP, CHFC, MSFS
(302) 324-5363
42 Reads Way
New Castle, DE
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Life Strategies, LLC
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Education: BAMSFS
Years of Experience: 8
Membership
IARFC, FPA, SFSP
Services
Invoice, Estate Planning, Retirement Planning, Tax Planning, Charitable Planning, Asset Protection, Compensation Plans

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Brian K. Lureen (RFC®), CHFC, CLU
(610) 889-2066
5 Great Valley Pkwy Ste 334
Malvern, PA
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Heritage Advisory Services, Inc.
Qualifications
Education: BS
Years of Experience: 21
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, CommOptions, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Charitable Planning, BuySell, Compensation Plans

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Eller Tax Service
(302) 656-4787
2303 Lancaster Ave
Wilmington, DE
 
H&R Block
(302) 656-7212
106 S UNION ST
WILMINGTON, DE

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Bill Curry
1521 Concord Pike
Wilmington, DE
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Company: Curry Poole Group, LLC
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Investment Advisor Rep: Yes
Registered Investor: Yes
Education
BS
MBA
JD
Years Experience
Years Experience: 42
Service
Pension for Highly Compensated Owners,Stock Market Alternative,Reverse Mortgage,Medicare Planning,Annuities,Alternative Asset Class Planning,Investment Consulting & Allocation Design,Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Hourly Financial Planning Engagements,Portfolio Engineering,Mortgage Refinancing,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Alternative Investments,Life Insurance,Investment & Portfolio Man

Data Provided by:
Frank M. Levy (RFC®), CHFC, CLU
(302) 765-3500
205 Philadelphia Pike
Wilmington, DE
Company
Diversified Financial Consultants
Qualifications
Years of Experience: 34
Membership
IARFC, MDRT
Services
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Asset Protection, Compensation Plans

Data Provided by:
H&R Block
(302) 999-8100
2407 KIRKWOOD HWY
WILMINGTON, DE

Data Provided by:
Eller Michael Income Tax Service
(302) 652-5916
724 N Union St
Wilmington, DE
 
Globe Income Tax Service
(302) 998-2256
2116 Kirkwood Hwy
Wilmington, DE
 
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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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