Welcome to the MDTAXES Message Board

The MDTAXES Network is an affiliation of CPAs that specialize in the tax planning and preparation for young health care professionals.  Please leave your questions or comments for our CPAs, who visit the message board regularly, or review the answers, suggestions and ideas posted in response to your colleagues' questions.

Please check out our other Message Boards available at www.FindAGoodCPA.com.

Please note: We are NOT affiliated with the Maryland Tax Department. If you're looking for information about Maryland income taxes, go to www.marylandtaxes.com.

Return to Website  > Index  > General Tax Issues  > Original MDTAXES Forum  > State Income Tax Deduction on Schedule C
Recent Posts
 
Original MDTAXES Forum
Start a New Topic 
Author
Comment
m
Meghan
Mar 11, 2004 - 4:06PM
State Income Tax Deduction on Schedule C

Hi-- I was hoping you might clarify how the state income tax deduction works on Schedule C. For instance, if my regular income is $40K, my moonlighting income is $10K, and my state income tax is 5%, how much is actually deductible? Is it 5% of $10K (moonlighting income only), $50K (total income), or some other figure? Thanks for your assistance!

g
Gary Davis CPA
Mar 14, 2004 - 7:04PM
Re: State Income Tax Deduction on Schedule C

State income taxes are an Itemized Deduction, deductible on Schedule A, but not on Schedule C. If you can itemize, you'll be able to deduct any state income taxes paid on Schedule A, but not on Schedule C.

Good luck!

Zip Code: garyd@davisandbrandel.com

Return to Website  > Index  > General Tax Issues  > Original MDTAXES Forum  > State Income Tax Deduction on Schedule C