logo
 
?

btc casino io

IRC 164 of Internal Revenue Code provides for itemized deduction of income tax that you pay to State and Local administration.

This post is going to simplify the law related to itemized deduction of state and local income tax through five questions and answer.

Each one will explain in simple words something about the deduction of taxes paid by you .

It is claimed by filling out Schedule A of your tax return , say Form 1040 .

As you know Schedule A is for claiming itemized deduction while computing taxable income .

The rule is simple as per section 164 of IRC ( refer point one above) , that says following types taxes paid to state or local authorities are allowable So , even if some taxes which are due next year , say in January next year , if paid by December , can be claimed as itemized deduction .

There are various statements which are issued by authorities who deduct the state or local tax .

You can examine those statements to see if any deduction is shown there .

Here are some documents for reference if you desire to know if tax was paid to State or Local authorities Similarly , you may examine other Form 1099 series like Form 1099 G for any gambling winnings (Box 15 & Box 17) or Form 1099 -D for any dividend income in box 14 or Form 1099-R if you earned income in form of pension, annuities plans , or IRAs etc . Lastly , check Form 1099-MISC in box 16 if there was any miscellaneous income earnings.

Yes, there are a few important aspect of claiming the state or local income tax as itemized deduction under IRC 164 .

These are : “If you and your spouse file joint state and local returns and separate federal returns,…

You can deduct only the amount of the total taxes that is proportionate to your gross income compared to the combined gross income of you and your spouse….