State Income Taxes Deduction

State Tax Deduction

State Income Taxes Deduction may be deducted on your federal income tax return if you itemize deductions.  Actually, you may deduct the greater of your state income taxes or your sales tax paid, but not both.

Seven states have no income tax:  Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.  Of course residents of those states deduct sales tax on your federal income tax return.

State income taxes deduction on Schedule A is obtained by adding all the state income tax shown on your W2s, Form 1099s, or on any other income forms.

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