Can I deduct state taxes if I itemize?

[SuperTool]

Coworker is doing it. He says overpay the state tax so you can recieve higher federal deduction.

 

[pulse8]

*waits for CPA*

 

[MailBoxHead]

Coworker huh?

And you work in... McDonalds?

 

[SuperTool]

Schedule A has a blank for state taxes. So if I paid more state taxes than standard deduction, It makes sense to itemize? How come turbo tax always tells me it's better not to itemize and just take the standard deduction?

 

[pulse8]

Originally posted by: SuperTool
Schedule A has a blank for state taxes. So if I paid more state taxes than standard deduction, It makes sense to itemize? How come turbo tax always tells me it's better not to itemize and just take the standard deduction?

Maybe because you can't deduct enough to make it worth it?

 

[JulesMaximus]

Originally posted by: SuperTool
Schedule A has a blank for state taxes. So if I paid more state taxes than standard deduction, It makes sense to itemize? How come turbo tax always tells me it's better not to itemize and just take the standard deduction?

Do you own a home? You probably won't have enough deductions to itemize unless you own a home. If your itemized deductions are less than the standard deduction then you would use the standard deduction amount. You can't do both. One or the other.

 

[SuperTool]

What's the standard deduction again for a single guy?

 

[JulesMaximus]

Originally posted by: SuperTool
What's the standard deduction again for a single guy?

$4,850.

 

[Maximus96]

which schedule is the itemize deduction? A or E? i get them mixed up. I think i can use standard deduction, plus schedule E (or maybe A) to deduct home improvement costs for my rental property, is that right?

 

[SuperTool]

Oh, I see. I only paid $4K or so in state taxes. Not a homeowner either.
I guess if I donate $850 in worthless junk to charity I can start itemizing.
Does anyone know if I donate my worthless duron computer to charity, how much can I deduct? Can I deduct what I paid for it, or just pick some number out of my head? Also, I have a lot of old clothing that I want to donate. Can I value it at say $30 per shirt?

 

[dirtboy]

I've never heard of getting to deduct state taxes.

 

[SuperTool]

Also, what if I overpay to the state? Let's say tomorrow I'll send them a check for $5K.
Can I then say I paid $9K in state taxes and deduct that from my federal taxes, and then get a return for $5K from the state? Or do I then have to pay tax for that state tax return next year?

 

[JulesMaximus]

Originally posted by: SuperTool
Coworker is doing it. He says overpay the state tax so you can recieve higher federal deduction.

Yes, you can deduct state taxes but it will be offset on the 1040 line 10 by any refunds from prior years.

Your friend is a moron and it will catch up with him big time.

 

[JulesMaximus]

Originally posted by: SuperTool
Oh, I see. I only paid $4K or so in state taxes. Not a homeowner either.
I guess if I donate $850 in worthless junk to charity I can start itemizing.
Does anyone know if I donate my worthless duron computer to charity, how much can I deduct? Can I deduct what I paid for it, or just pick some number out of my head? Also, I have a lot of old clothing that I want to donate. Can I value it at say $30 per shirt?

Read this.

 

[SuperTool]

Thanks. So up to 5000, I don't have to appraise it? So for all I care that PC sitting in garage for 3 years can be worth $2K? I mean once I donate it, how are they gonna know what it's worth?

 

[JulesMaximus]

Originally posted by: SuperTool
Thanks. So up to 5000, I don't have to appraise it? So for all I care that PC sitting in garage for 3 years can be worth $2K? I mean once I donate it, how are they gonna know what it's worth?

$500. Not $5000. You can claim the value of what that old PC would sell for on the open market now. Not what you paid for it 10 years ago.