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which state taxes to deduct?

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  • which state taxes to deduct?

    I live in NH (no state sales or income tax, except sales tax on "prepared foods"). Local property tax on vehicle is not insignificant, and it is based upon vehicle value.

    Work in NH, but also 1099 income from VT. Can I deduct the VT income tax and the NH property and sales tax?

    Or only VT income tax and NH property tax?

  • #2
    Can you deduct them where? iow - are you talking about schedule A, schedule C, or both?
    Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Schedule A, since none of it is really business related. Just thinking about how to get the best of deducting state taxes from federal since I will be living/working in NH which has no income/sales tax, but does have the property taxes, and also working in VT with significant income tax.

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      • #4
        Some taxes can be deducted on schedule C. For example, property taxes based on the value of the car can be prorated between sch C (for business use of car, even if you are taking a mileage deduction) and schedule A. Some income-related taxes (LLC annual filing, for ex.) can also be deducted on sch C. The rest goes on schedule A. Sales tax can either be calculated based upon your income or actual expenses. Even if you use the estimate based upon income, you can also deduct sales taxes on "large purchases".
        Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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