client owed $1071 to state for 2006, he paid that amount in 2007, can he deduct the $1071 on schedule A line 5 for the tax year 2007??
Thank you in advance
Thank you in advance
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Yup
They can take that in addition to the state withholdings they paid in 2007 -
Yes
The thing to keep in mind is that he is a cash basis taxpayer. It is when he paid it, not when it accrued. If he paid 2004, 2005, and 2006 in 2007, they could all be added to the return deduction.
LTOnly in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".Comment
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thank you mike max and tom taxComment
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Do not forget other local taxes.
The section title is "State and Local Taxes", so do not forget the other divisions below the state that can include the county/parish income and personal property taxes, manicupality income taxes, shcool district income taxes, etc.Last edited by gkaiseril; 03-17-2008, 12:42 PM.Comment
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