California's 9th Circuit in the Trujillo case, back in the
80s, decided that such a tax based on income was an income
tax. Deductible. Mr Trujillo, one of my heros, went to
court for a deduction that meant $22 in income tax. And
won.

Nan, EA in La

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- quote -

Yes, you can add these few bucks (the tax was .0002 last
year) to your taxes paid on Sch A.

Helen, EA in PA
Member of The Tax Gang
Director, National Assoication of Enrolled Agents
Immediate Past President, PA Society of Enrolled Agents

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My employer has been deducting a % of my pay for Pennsylvania
Unemployment Compensation Insurance(Trust Fund). This is a
mandatory tax imposed by the state. It started in 2003 and
has increased in 2004.

Does anyone know if I can itemize this tax and take it as
a deduction on 1040 Schedule A?

IRS Publication 17 lists something called "Employee contributions
to state funds" as deductible as a state income tax. However only
a few state funds are specifically listed, one is a New Jersey
Unemployment Compensation Fund.

Does anyone know why the Pennsylvania Fund isn't on this list?
Does an unemployment compensation fund have to be on this list
for the % of income tax that my employer deducts to be eligible
on Schedule A.

Thanks for any info on this.

Frank

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