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Are state income payments deductible on federal taxes?
Yes, State Income Taxes are deductible against Federal income; not the amount you owe the state, but the amount you actually paid through withholding, prior year credits, payments with the prior year state return, and/or estimated payments, during the calendar year for which you are filing Form 1040.You must file a 1040 Schedule A, Itemized Deductions in order to claim either state income tax or state salestax on your return. Your total itemized deductions need to be greater than your Standard Deduction to be of benefit to you.If you file a Form 1040, and itemize deductions on Schedule A, you have the option of claiming either state and local income taxes or state and local sales taxes. (You can't claim both.) If you saved your receipts throughout the year, you can add up the total amount of sales taxes you actually paid and claim that amount.If you didn't save all your receipts, you can still choose to claim state and local sales taxes. You can even use the Sales Tax Deduction Calculator to figure how much state sales taxes you can claim if you decide to go that route.Using the Sales Tax Deduction CalculatorTo figure the amount of optional general sales tax you are eligible to claim, just answer a few online questions and the system does the rest.First select the year you are filing taxes for. Then, using your ZIP Code and just a few entries from your draft Form 1040, the Sales Tax Deduction Calculator will automatically figure the amount of state and local sales tax you can claim. You will see the results from your entries immediately on your computer screen. Even if state and local sales tax rates changed during the year (e.g., due to changes in state and local rates or because you moved your personal residence), the Sales Tax Deduction Calculator can handle it.Your entries are anonymous and the information is collected solely to allow you to determine your total allowable deduction. All entries are erased when you exit or start over.
Do you include the taxes paid on business expenses when using them as a deduction on your taxes?
You mean sales tax I presume? Yes, under most all systems that just becomes a part of the cost you paid.
What is sales tax credit for 2007 income tax?
If you are itemizing deductions (on a schedule A) as opposed to taking your standard deduction you have 2 different ways to deduct taxes paid to the state you live (or work) in. For the State Income Tax Deduction you can deduct the amount of taxes paid in 2007 (any state witholding from a W2, 1099G, 1099R etc., any balance due on a state tax return that you paid in 2007 and any estimated payments you made to your state's dept of revenue). The other method is the General Sales Tax Deduction. The General Sales Tax Deduction can be calculated 2 different ways. You can either add the sales tax you have paid to any state up manually, one receipt at a time. -OR- you can use the Safe Harbor method where you multiply the days you have lived in your state (365 if all year) by the state and local sales tax rate and your income (please refer to line instructions for form 1040 for a more detailed description of this formula) to that figure you will add any sales tax paid on qualified purchases (a house, a car, big ticket items) and that will be you deduction.
Do you withhold federal taxes for minors?
All taxes should be withheld on earned wages. If a minor has less than the standard deduction in UNEARNED income then they will not pay any Federal Tax... the state and local taxes depend on the state and locality.
Why does Florida does not pay state tax?
All levels of government have their own type of funding to pay their expenses. The federal government uses mostly income and excise taxes. City and county governments mostly use property taxes. Some cities use a sales taxes in addition to property taxes. States vary. Some states, like Oregon, use primarily income taxes and don't have a sales tax. Other states, like Florida, use mainly sales taxes and don't have an income tax. Most states, use a combination and have both income and sales taxes. Some states only tax businesses and not individuals, like Alaska who gets tax income from corporations and businesses only and doesn't have a sales tax. Many states also have other types of taxes in addition to their main source of taxes (use, luxury, lodging, etc). This is how these various levels of government get their income to operate and run programs, provide services, and pay employees.
Does Maryland have state taxes?
All governments charge taxes. Some governments have income taxes, some have property taxes, some have sales taxes.
Are state income payments deductible on federal taxes?
Yes, State Income Taxes are deductible against Federal income; not the amount you owe the state, but the amount you actually paid through withholding, prior year credits, payments with the prior year state return, and/or estimated payments, during the calendar year for which you are filing Form 1040.You must file a 1040 Schedule A, Itemized Deductions in order to claim either state income tax or state salestax on your return. Your total itemized deductions need to be greater than your Standard Deduction to be of benefit to you.If you file a Form 1040, and itemize deductions on Schedule A, you have the option of claiming either state and local income taxes or state and local sales taxes. (You can't claim both.) If you saved your receipts throughout the year, you can add up the total amount of sales taxes you actually paid and claim that amount.If you didn't save all your receipts, you can still choose to claim state and local sales taxes. You can even use the Sales Tax Deduction Calculator to figure how much state sales taxes you can claim if you decide to go that route.Using the Sales Tax Deduction CalculatorTo figure the amount of optional general sales tax you are eligible to claim, just answer a few online questions and the system does the rest.First select the year you are filing taxes for. Then, using your ZIP Code and just a few entries from your draft Form 1040, the Sales Tax Deduction Calculator will automatically figure the amount of state and local sales tax you can claim. You will see the results from your entries immediately on your computer screen. Even if state and local sales tax rates changed during the year (e.g., due to changes in state and local rates or because you moved your personal residence), the Sales Tax Deduction Calculator can handle it.Your entries are anonymous and the information is collected solely to allow you to determine your total allowable deduction. All entries are erased when you exit or start over.
Do you include the taxes paid on business expenses when using them as a deduction on your taxes?
You mean sales tax I presume? Yes, under most all systems that just becomes a part of the cost you paid.
What is sales tax credit for 2007 income tax?
If you are itemizing deductions (on a schedule A) as opposed to taking your standard deduction you have 2 different ways to deduct taxes paid to the state you live (or work) in. For the State Income Tax Deduction you can deduct the amount of taxes paid in 2007 (any state witholding from a W2, 1099G, 1099R etc., any balance due on a state tax return that you paid in 2007 and any estimated payments you made to your state's dept of revenue). The other method is the General Sales Tax Deduction. The General Sales Tax Deduction can be calculated 2 different ways. You can either add the sales tax you have paid to any state up manually, one receipt at a time. -OR- you can use the Safe Harbor method where you multiply the days you have lived in your state (365 if all year) by the state and local sales tax rate and your income (please refer to line instructions for form 1040 for a more detailed description of this formula) to that figure you will add any sales tax paid on qualified purchases (a house, a car, big ticket items) and that will be you deduction.
What are types of State taxes in the United States?
In the United States, States have taxes on a number of items. Below is a list of taxes that States have created. Not all States have all the taxes listed: * personal income; * sales taxes; * corporate taxes; * gasoline taxes; and * property taxes.
Do you withhold federal taxes for minors?
All taxes should be withheld on earned wages. If a minor has less than the standard deduction in UNEARNED income then they will not pay any Federal Tax... the state and local taxes depend on the state and locality.
Why does the state government receive all of their money from the federal government?
The state governments do not receive all their money from the Federal government. The majority of their funds come from state income taxes, property taxes and sales taxes.
What percentage of taxes are withheld from Tennessee lottery winnings?
Taxed as any other ordinary income...meaning at your own personal rate consideing all deduction, exemptions, etc.
Why does Florida does not pay state tax?
All levels of government have their own type of funding to pay their expenses. The federal government uses mostly income and excise taxes. City and county governments mostly use property taxes. Some cities use a sales taxes in addition to property taxes. States vary. Some states, like Oregon, use primarily income taxes and don't have a sales tax. Other states, like Florida, use mainly sales taxes and don't have an income tax. Most states, use a combination and have both income and sales taxes. Some states only tax businesses and not individuals, like Alaska who gets tax income from corporations and businesses only and doesn't have a sales tax. Many states also have other types of taxes in addition to their main source of taxes (use, luxury, lodging, etc). This is how these various levels of government get their income to operate and run programs, provide services, and pay employees.
What is the income threshold for exemption for Medicare deduction from Social Security?
There is no income threshold for Medicare taxes. While the 6.2% Social Security tax is only deducted from the first $106,800 of gross income, you continue paying 1.45% for Medicare on all wages earned.
What must you subtract to calculate income before taxes?
Add all of your total worldwide income together on your 1040 income tax return. Then if you have any adjustments to income you subtract that amount from your total income to arrive at your adjusted gross income on your 1040 federal income tax return. From your AGI you would then subtract your standard deduction amount or if you use the schedule A itemized deduction form of the 1040 tax form the itemized deduction amount whichever amount would reduce your taxable income the most. After doing that you have determined your taxable income amount that you will use to determine your federal income tax liability amount on.
Can you claim mortgage interest on income taxes on your NY home and live in Florida?
On your federal income taxes, you are allowed to claim a mortgage interest deduction for your principal residence and one other residence of your choice. It does not have to be in the same state. In addition, you are allowed to claim the interest on all rental or business properties.
