We often wish we didn’t have to remind ourselves about this one. If you owed taxes when you filed your state income tax return last year, it’s crucial that you include that amount in your state-tax deduction on this year’s federal return, plus state income taxes withheld from your paychecks or paid via quarterly estimated payments during the year.
Too many people forget to do this, so if you’re usually forgetful, write this down in your calendar ASAP!
If you’re married and stifling separately, the deduction for state and local taxes is limited to $5,000, compared to $10,000!
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