I am new to filing taxes and I live in California.Can I deduct the total amount I have paid in state income tax from the total amount I owe in federal income tax on my Tax Return?
I am filing as a single person.
You can’t deduct the total paid in state income tax from what you owe in federal Income Taxe, but what you can do is you can deduct your state income tax payments on Schedule A itemized deductions on state or sales taxes line 5. You have the choice of taking either. But you have to itemize for the state income taxes to do you any good, and if you itemize and deduct state income taxes, then if you get a refund it’s taxable to you in the next year.