waters[at]pop500.gsfc.nasa.gov (Skuddz) wrote:

- quote -

If you paid MD $3000 in 2003, then it gets listed as part of
the state income tax paid in 2003. If the total of this
$3000 plus your other deductions are higher than the
standard deduction, then you do get to deduct the $3000.

--
Vic Roberts

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dwaters[at]pop500.gsfc.nasa.gov (Skuddz) wrote:

- quote -

Yes, you can deduct it--if you itemize deductions on
Schedule A.

(BTW, you only have to report state tax refunds as income if
you itemized the previous year.)

--
D.F. Manno
dommanno[at]netscape.net
"They that can give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
(Benjamin Franklin)

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- quote -

It's part of state and local taxes on Schedule A. See the
1040 instructions.

Phil Marti
Topeka, KS

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- quote -

What matters is not how much you OWED but how much you PAID
in 2003. If you paid $3,000 with the Maryland return that
you filed in 2003 (for your 2002 state taxes), then yes, you
can include that $3,000 in the state income taxes that you
deduct on Schedule A line 5 of your federal return for 2003,
which you will file this year. This is assuming that you
have enough other deductions so that itemizing works out
better than taking the standard deduction.

- quote -

It depends on whether you took an itemized deduction for
state income taxes in the previous year. If you had received
a refund from the state in 2003, for your 2002 state taxes,
and you had deducted state taxes on your federal return for
2002, then you would report the refund as income on your
federal return for 2003. (There are some more ifs, but
they're not important since this is hypothetical.) If you
did not itemize deductions on your federal return for 2002,
then the refund of 2002 state tax that you received in 2003
would not be taxable, and you would not report it on your
2003 federal return.

- quote -

I don't understand this question.

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When I filed my Maryland tax last year I owed the State
3,000.00. Do I get to deduct 3,000.00 from federal this
year?? If I got a refund I would claim it as income so if I
paid the state more last year do I get to deduct it ????

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