My state (MT) has disallowed a deduction for local income taxes paid by a resident to a non-resident state. Reasoning is that MT doesn't have a local income tax and therefor no deduction (only for non MT residents or part-year residents).
There is no specific code in MT, they follow the federal.
I have a problem with that reasoning, the federal doesn't differenciate where you live to be able to deduct local taxes, so why does MT. Can anyone follow this reasoning or give me an argument against it?
Maybe I should post this questions again after tax season with the title: Best argument wanted!
There is no specific code in MT, they follow the federal.
I have a problem with that reasoning, the federal doesn't differenciate where you live to be able to deduct local taxes, so why does MT. Can anyone follow this reasoning or give me an argument against it?
Maybe I should post this questions again after tax season with the title: Best argument wanted!