|
Posted by Barry Margolin on June 22, 2006, 8:58 pm
Please log in for more thread options
> I filed tax return extensions in April for both my Fed Tax
> Return and California Tax Return. I paid about $9000 for
> California Tax at that time. Now I am working on filing the
> return and found out that I need to pay about $11000 for
> California Tax.
>
> In this case, for 1040, should I use the Standard Deduction or
For most people, it's best to use whichever deduction is
larger. There was a thread sometime last year discussing
some exceptional cases.
> Itermized deduction? In Schedue A of 1040, for the state tax item,
> should I put $9000, or $11000?
When you're filling in your federal tax return for 2005, you
deduct the amount of state tax you paid IN 2005, not the
amount you paid FOR 2005. That would be the amount you had
withheld last year plus the amount you sent in last year
with your 2004 state tax return. If you find that you have
to pay more now, it will be deducted on your 2006 return,
which you'll fill out next year.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***
<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap