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You can deduct it but that doesn’t reduce federal taxes by that amount. If you’re in the 25% federal tax bracket, being able to deduct that 8% state tax effecti
by dpark 8y ago
You can deduct it but that doesn’t reduce federal taxes by that amount. If you’re in the 25% federal tax bracket, being able to deduct that 8% state tax effectively turns it into 6% additional tax which is still a lot if you weren’t paying it before.
Edit: others pointed out that this deduction is now capped, which I didn’t realize.