Are the payroll tax and Massachusetts income tax deductible from ferderal income tax?
I know student loan interest, health care, and public transportation are tax deductible.
This in total takes $2,800 off my annual salary. There is also about another $9,000 for personal exception and standard deduction, and another $450 from losses in the market last year.
I just wanted to know if mass income tax of 5.3% is deductible and the 7.65% payroll tax are deductible.
Also are any federal, payroll, student loan interest, standard deduction, personal exception, etc.. deductible for massachusetts income tax? I haven’t been able to find any info on this while searching.
I guess I should add, is the personal exception different from the standard deduction?
Can I do itemized deductions and still use the $3,500 personal exemption?
You can deduct your state income tax paid if you itemize. You cannot deduct the payroll tax on your federal tax return. Half of your Medicare and Social Security withholding can be deducted on your Massachusetts tax return up to $3,000.
You can take your student loan interest as an adjustment on your 1040, not as an itemized deduction.
Health care can be deduction as long as it is greater than 7.5% of your AGI. If your health insurance premiums are taken out of your taxes pretax, you cannot deduct them as they were not subject income tax.
You cannot take both itemized deductions and standard deduction. It is one or the other.
Public transportation is NOT a deduction unless it was for work related activities and NOT commuting. It is also subject to 2% of AGI floor.
Federal taxes are not deductible on the MA tax return.
