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Learning, Sharing, and Teaching => Taxes => Topic started by: billy on February 10, 2019, 04:35:03 PM

Title: standard deduction
Post by: billy on February 10, 2019, 04:35:03 PM
So in California, if my wife and I take the federal standard deduction, that means we cannot write off property tax or state income tax?
Title: Re: standard deduction
Post by: terran on February 10, 2019, 04:45:56 PM
Correct, you can either itemize or use the standard deduction on you federal taxes. With the now higher standard deduction and the $10k limit on state/property taxes it's more likely than before that the standard deduction is preferable.
Title: Re: standard deduction
Post by: walkwalkwalk on February 10, 2019, 05:36:05 PM
Correct, you can either itemize or use the standard deduction on you federal taxes. With the now higher standard deduction and the $10k limit on state/property taxes it's more likely than before that the standard deduction is preferable.
It depends on the state's standard deduction amount and whether they don't follow the same rules as federal. It could still be advantageous to force it to itemize by paying a little bit more in federal taxes and save more in state taxes.

I would see a professional if you think this is something that might apply to you.
Title: Re: standard deduction
Post by: terran on February 10, 2019, 08:15:19 PM
Correct, you can either itemize or use the standard deduction on you federal taxes. With the now higher standard deduction and the $10k limit on state/property taxes it's more likely than before that the standard deduction is preferable.
It depends on the state's standard deduction amount and whether they don't follow the same rules as federal. It could still be advantageous to force it to itemize by paying a little bit more in federal taxes and save more in state taxes.

I would see a professional if you think this is something that might apply to you.

I was confused by how the OP was written. I think you're right that this is actually a question about state tax. It was probably meant to read "that means we cannot write off property tax on state income tax?"
Title: Re: standard deduction
Post by: billy on February 11, 2019, 06:20:57 AM
I was talking about federal.  I'll double check to see if itemizing makes sense for state, that's a good idea thanks.