Are federal taxes deductible on state taxes?

A deduction, in terms for taxing purposes, is when a taxpayer is able to subtract a specific amount from his/her income that can be taxed by the federal and state governments. They are basically called tax breaks, and can be attributed to numerous things like: having dependents, the kind of retirement plan you have, the state you live in, and more. In the very unusual instance where your federal income tax can provide a tax deduction for your state tax, it can be very beneficial. This only happens in certain states, six to be exact. Those states are Missouri, Alabama, Iowa, Louisiana, Montana, and Oregon. Any other state does not grant you a deduction of any sort in relativity to federal income tax against state tax. It depends on the state. For example in California the answer is no yet in Iowa the answer is yes.

Related Tax Questions

Comments