Question - Are California state taxes deductible from federal taxes?

Answered by: Gary Reed  |  Category: General  |  Last Updated: 24-08-2021  |  Views: 660  |  Total Questions: 14

California Deductions California does not allow several federal deductions, including deductions for contributions to a health savings account (HSA), adoption expenses, federal estate taxes, educator expenses, qualified higher education expenses, and paid state, local, or foreign income taxes. Taxpayers who itemize deductions on their federal income tax returns can deduct state and local real estate and personal property taxes, as well as either income taxes or general sales taxes. State and local taxes have been deductible since the inception of the federal income tax in 1913. Per the current CA FTB guidance, property taxes are deductible on your CA state tax return if you itemize and are not subject to the $10k deduction limit that is imposed on the federal return. Local income taxes are not deductible. Under the new plan, taxpayers who itemize will be able to deduct their state individual income, sales and property taxes up to a limit of $10, 000 in total starting in 2018. Currently the deduction is unlimited. But filers have to choose to deduct either individual income taxes or sales taxes. Taxpayers who itemize their deductions (meaning they don't take the standard deduction) can deduct what they've paid in certain state and local taxes. This SALT deduction includes property, income and sales taxes. The limit is also important to know because the 2019 standard deduction is $12, 200 (for single filers).

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/can-i-take-standard-deduction-sc

Can I take standard deduction (schedule A) on Federal taxes and itemize on state taxes? Yes, you can use the standard deduction on your Federal return but itemize on your Oregon state return. There is nothing in the Federal tax laws that say you must use the same deductions on your Federal and state returns.

https://www.nerdwallet.com/blog/taxes/tax-deductions-tax-breaks/

What is a tax deduction? A tax deduction lowers your taxable income and thus reduces your tax liability. You subtract the amount of the tax deduction from your income, making your taxable income lower. The lower your taxable income, the lower your tax bill.

https://www.freetaxusa.com/help/display_faq.jsp?itemized-deductions&faq_id=8264

California generally doesn't conform to the changes from the Tax Cuts and Jobs Act, including the changes to what's allowed as an itemized deduction. This means you can include some things as itemized deductions for California that you're not able to include in your federal itemized deductions.

https://www.fool.com/taxes/your-2019-guide-to-tax-deductions.aspx

The standard deduction Tax Filing Status 2018 Standard Deduction 2019 Standard Deduction Married Filing Jointly $24, 000 $24, 400 Head of Household $18, 000 $18, 350 Single $12, 000 $12, 200 Married Filing Separately $12, 000 $12, 200

https://www.1040.com/tax-guide/tax-savings-strategies/deducting-state-and-local-taxes/

If you itemize deductions, you can deduct state and local taxes you paid during the year. Included in this total are state and local income taxes, real property taxes, and personal property taxes. To claim your state or local tax deduction on your 1040. com return, add the Itemized Deductions – Taxes Paid screen.

https://smartasset.com/taxes/wheres-my-state-tax-refund

When you file your federal income tax return, you can check the status of your refund by visiting the IRS website or its mobile app. However, each state has its own process for handling state income taxes. If you expect a refund, your state may take only a few days to process it or the state may take a few months.

https://support.taxslayer.com/hc/en-us/articles/360015713672-1099-G-General-Information-About-State-

If you received a refund of state or local income taxes from last year's tax return, you may receive a Form 1099-G reporting this refund as income. If you itemized deductions on your federal return in the same year that you received the state or local refund, the refund may be considered taxable income.

https://www.thebalance.com/tax-payments-3193145

Line 64: Withholding on W-2 and 1099 Both boxes should be titled, "Federal Income Tax Withheld. " The figures in these boxes report how much income tax was withheld from your income over the course of the year. Add up all these amounts and report the total on line 64 of Form 1040.

https://smartasset.com/taxes/itemize-taxes-under-the-new-tax-plan

Taking the standard deduction is the simplest option. It allows you to deduct a set amount of money from your taxes. The other option is to itemize. Itemizing allows you to list your expenses and then deduct the total of everything you've listed.

https://www.taxslayer.com/blog/can-i-deduct-the-mortgage-interest-deduction/

The Mortgage Interest Deduction allows homeowners to reduce their taxable income by the amount of interest paid on a qualified residence loan. The law regarding the Mortgage Interest Deduction has been revised by the Tax Cuts and Jobs Act, and the changes will take effect beginning with returns filed in 2019.

https://www.creditkarma.com/tax/i/itemized-deductions-2018/

Nearly doubling the standard deduction Those figures nearly doubled for 2018 returns: $12, 000 for single filers and married filing separately, $18, 000 for heads of household, and $24, 000 for married couples filing jointly and qualified widow(er)s.

https://www.cbsnews.com/news/2018-tax-deductions-no-longer-claim-when-filing-income-taxes/

But families may still come out ahead, given that some taxpayers lost deductions if their income exceeded certain thresholds. Starting in 2018, the phase-out for the personal exemption and standard deduction for married couples with adjusted gross income above $313, 800 (and singles above $261, 500) has been repealed.

https://www.taxslayer.com/tax-reform/state-and-local

The SALT deduction allows you to deduct up to $10, 000 of your state and local property taxes in addition to state income or state sales tax – not both. The combination you choose to deduct will depend on your specific circumstances and what benefits you most.

https://www.nerdwallet.com/blog/taxes/standard-deduction/

The standard deduction reduces your taxable income. In 2019 the standard deduction is $12, 200 for single filers and married filers filing separately, $24, 400 for married filers filing jointly and $18, 350 for heads of household.