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I'm thinking about it in deducting state and local tax return. I pay $10000 in income tax. Some one in CA pays $10000 - $10000 deduction = $0 goes to the fede
by ixacto 9y ago
I'm thinking about it in deducting state and local tax return. I pay $10000 in income tax. Some one in CA pays $10000 - $10000 deduction = $0 goes to the federal government if I am not mistaken. This is what I am talking about not the total contribution from each state.
If you are tired of paying state tax WA/TX/FL all have large liberal cities that have a good amount of STEM jobs...
- gamblor956 9y agoThat's not how income taxes work. If $10000 is your tax liability, then a $10000 deduction is worth only your marginal rate * amount of the deduction, because a deduction reduces your taxable income prior to figuring out liability. (A tax credit is a dollar for dollar reduction of a tax liability.) Assuming 25% bracket, then a $10000 deduction for SALT is worth $2500 off your federal taxes.