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#1330283 - 01/25/10 07:57 PM deduction for state and local taxes
straw Offline
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Is it true that the deduction for state and local taxes expired last year?

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#1330287 - 01/25/10 08:00 PM Re: deduction for state and local taxes straw
Pale Rider Offline
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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?
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#1330321 - 01/25/10 08:12 PM Re: deduction for state and local taxes Pale Rider
straw Offline
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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.

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#1330355 - 01/25/10 08:38 PM Re: deduction for state and local taxes straw
Fraudman CFCI Offline
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I recently saw where this deduction will still be available this year.

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#1330357 - 01/25/10 08:39 PM Re: deduction for state and local taxes Fraudman CFCI
Blade Scrapper Offline
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It's still there, but my standard deduction was more.
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#1330361 - 01/25/10 08:42 PM Re: deduction for state and local taxes Blade Scrapper
A_G Offline
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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! crazy So they're taxing money, which you overpaid them and allowed them to use, interest free, which was really yours in the first place... crazy
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#1330376 - 01/25/10 08:49 PM Re: deduction for state and local taxes A_G
Pale Rider Offline
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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.....
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#1330380 - 01/25/10 08:51 PM Re: deduction for state and local taxes Pale Rider
straw Offline
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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.

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#1330404 - 01/25/10 09:06 PM Re: deduction for state and local taxes straw
Retired DQ Offline
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Same in NJ, AG...
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#1330407 - 01/25/10 09:09 PM Re: deduction for state and local taxes Retired DQ
A_G Offline
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I always take the standard deduction so it doesn't affect me, but I never understood it.
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#1330409 - 01/25/10 09:10 PM Re: deduction for state and local taxes Retired DQ
Dip Offline
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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!
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#1330413 - 01/25/10 09:13 PM Re: deduction for state and local taxes Dip
Pale Rider Offline
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but you can't deduct the loss on the sale of your house Dipster!!!
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#1330415 - 01/25/10 09:15 PM Re: deduction for state and local taxes Pale Rider
Dip Offline
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I didn't sell any house mister!
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#1330420 - 01/25/10 09:21 PM Re: deduction for state and local taxes Pale Rider
Bailey. Offline
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Originally Posted By: Pale
but you can't deduct the loss on the sale of your house Dipster!!!


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

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#1330424 - 01/25/10 09:25 PM Re: deduction for state and local taxes Bailey.
straw Offline
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I guess I need to rephrase. Is the state and local tax deduction available for tax year 2010?

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#1331431 - 01/26/10 09:48 PM Re: deduction for state and local taxes straw
Jokerman Offline
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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.

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#1331440 - 01/26/10 09:56 PM Re: deduction for state and local taxes Jokerman
straw Offline
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straw
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maybe they were talking about sales tax. state and local income tax deductibility was never set to expire correct?

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#1331452 - 01/26/10 10:00 PM Re: deduction for state and local taxes straw
Jokerman Offline
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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.

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#1331453 - 01/26/10 10:02 PM Re: deduction for state and local taxes Jokerman
straw Offline
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that must be it then, the sales tax provisions.

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