New York State Income Tax Withholding

Posted on November 25, 2011 by Admin
New York State Income Tax Withholding

New York State Income Tax Withholding

This article is a quick look at some potential tax deductions (often called "tax write-offs" or "tax breaks") for taxpayers who itemize on their federal tax returns. Taxpayers who think any of these often missed Schedule A deductions might apply to them should research them further by a visit the Internal Revenue Service (IRS) website or a tax professional. While this list provides the gist of each of the deductions, there can be exceptions, exemptions, exclusions, phase outs, threshold limits, or other restrictions that apply to them.

State or Local Personal Property Taxes

State or local taxes which are based on the property’s value and which are regularly collected, such as registration fees for cars and boats, are deductible.

Foreign Taxes

The taxpayer can generally take either a credit or deduction for taxes paid to a foreign country or U.S. possession, unless the income involved is exempt from US tax under the foreign earned income exclusion or foreign housing exclusion. While it’s generally better to take a tax credit rather than a deduction, as a credit reduces the tax bill dollar for dollar, there are individual situations where it may be more beneficial to take the Schedule A deduction.