How can state tax affect 1040 when I fill my tax return. is it a plus ? can i benefit of it when I fill my tax returns?
If you itemize your deductions you can claim state and local taxes paid as a deduction to reduce your taxable income. There's a catch, though. If you claim a state tax deduction, if you get a state tax refund that amount is going to be included as income the next year.
For most people, the standard deduction is better than what they could even hope to come close to itemizing. I make a pretty damn good living, and the standard deduction is still higher than my itemized.
If you have enough deductions to itemize, your state and local income taxes are deductible on Schedule A.
Generally speaking, unless you own a home and are paying on a mortgage, you probably won't have enough deductions to itemize.
If you really want, you can deduct the state tax instead of taking the standard deduction. However, you can't do both, and the benefit of the standard deduction is usually more, so deciding to deduct the state tax would probably hurt you.
the two individual tax returns are connected only in that probably the gross income reported on your 1040 is brought forward to your state return
it is possible if you use Sch A and itemize the state income tax you actually paid could be claimed on that schedule which could affect your federal refund
If you itemize deductions you can deduct state tax paid from your federal 1040. Other than that, no effect.
If you itemize, you can deduct state income tax.
if you itemize deductions, you can deduct state and local income taxes