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  • State tax deduction

    Hello,

    I'm starting to get my preliminary filings in order in turbo tax and had a question I was hoping someone would be experienced with. Last year I had to file two state taxes, one with CA and one with OH. My CA taxes resulted in a refund which is going to be reported this year as a 1099-G, but I owed taxes in Ohio. Is there a way to deduct those taxes I paid in April 2016?

    The amount from last year is low, but this year I was behind on my California taxes and owe 5,000  ops:  I want to make sure that gets calculated into my 2016 or 2017 return!

     

  • #2
    Do you pay the AMT? State tax is not deductible in the AMT calculation, which is a real bummer for people with high incomes in high tax states.

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    • #3
      From what I can tell I will not but subject to AMT for the 2016 tax year, but most likely for 2017. (For clarification these changes are because I went from being a resident to a full time hospitalist in 2015, and this year my wife will finish residency)

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      • #4




        From what I can tell I will not but subject to AMT for the 2016 tax year, but most likely for 2017. (For clarification these changes are because I went from being a resident to a full time hospitalist in 2015, and this year my wife will finish residency)
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        You should at least consider whether it will be more beneficial to deduct sales taxes than state income taxes. Don't know if TT has much tax projection capabilities but it might be time to consider working with a CPA for more than just tax preparation. If you are both W2 employees, the cost should be reasonable.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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