Is it true that the deduction for state and local taxes expired last year?

yikes!!!

None here in Texas, but I have been using the sales tax deduction to my satisfaction....

this hasn't gone away too, has it?

Not sure. I hadn't heard anything about this, but was just reading an article that mentioned it. WOuld have some impact on me personally, but for folks who live in high tax states like NY, NJ, Conn, Calif., this will have a huge impact.

I recently saw where this deduction will still be available this year.

It's still there, but my standard deduction was more.

SD was higher for me too.

Someone explain this to me - if you itemize in NY, the following year any refund you received the prior year is taxed! So they're taxing money, which you overpaid them and allowed them to use, interest free, which was really yours in the first place...

It was your allowance, they were just loaning it to you in the first place!


I hear the President is going to propose all student loans be forgiven after 20 years of making payments.....

I can't imagine borrowing that much to go to school.....

It has gotten very expensive; tuition has outpaced inflation by a huge amount, on par or slightly more than health care costs.

Funny that this hasn't been tabbed a crisis.

Same in NJ, AG...

I always take the standard deduction so it doesn't affect me, but I never understood it.

How funny, I just discovered thsi deduction today! The deduction for state and local income taxes is still available. You can take that, or trade it for deducting state and local sales taxes (but not both, you have to choose).

Just got my W-2 today so I'm all excited to do my taxes and see hwo much I get back (homebuyer's credit!!!). Looked up all these forms I need...apparently, I get to deduct beauty school too! Whoopee!

but you can't deduct the loss on the sale of your house Dipster!!!

I didn't sell any house mister!

^^^lasting effects from dutch feet sniffin' days, right there

I guess I need to rephrase. Is the state and local tax deduction available for tax year 2010?

There are a couple of issues here: one, the itemizing taxpayer's option to deduct state & local sales tax (instead of only deducting income taxes) was scheduled to expire as of the end of '09 (twice before, it's been scheduled to expire, only to be extended for two year periods - I'm not aware of any action taken on this yet, but wouldn't be surprised by it). Two, the deductibility of sales tax on autos (regardless of whether the taxpayer itemizes) expired 12/31/09. Hope that helps.

maybe they were talking about sales tax. state and local income tax deductibility was never set to expire correct?

No, that's been in the tax code "forever" and has no sunset clause that I'm aware of. Pretty much every recent tax break has had to be passed by reconciliation (to stop Democrats from filibustering it), so most of the recent ones have sunsets.

that must be it then, the sales tax provisions.