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Crapshoot 02-22-2005 11:17 AM

Tax q
 
When Im filing Federal taxes online, I notice that my state income tax is not deducted from the Wages. Is this because that tax is not deductible at all, or because in this case, my total deductions (charity, state tax, etc) are less than 3100 and it defaults to that number ? Graduated in May, so this whole filing taxes with having actual money bit is new to me.. :D

Farrah Whitworth-Rahn 02-22-2005 11:17 AM

Are you itemizing your deductions or taking the standard deduction?

EagleFan 02-22-2005 11:22 AM

State tax is only deductible if you itemize. This means that you need enough deductions to meet whatever the standard deduction is for it to be deducted. You probably don't have enough so you are getting the standard deduction.

Crapshoot 02-22-2005 11:25 AM

Quote:

Originally Posted by Farrah Whitworth-Rahn
Are you itemizing your deductions or taking the standard deduction?


That's a very good question - my understanding is that if the deductions are less than 3100, you take the standard deduction - which seems to be my scenario I am in . I'm doing it with one of the IRS provided services online and the calculations are done automatically - is that the decision it seems to be making for me ?

Crapshoot 02-22-2005 11:26 AM

Aha- thanks Eaglesfan- that's what I thought. Thank you as well Farrah.


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