Monday, December 19, 2011

Do I need to itemize federal to get a state tax deduction?

I know that to claim deductions on your federal tax return you need to have a list of deductions that add up to more than the standard deduction available to each individual (or couple). Is the same true with a state tax deduction? My state offers a deduction for contributions to a state-run 529 plan. Do I have to itemize my federal (or state?) tax deductions and have a greater deduction than the standard deductions to take advantage of this? Or is it just a deduction from my taxable state income, regardless of itemization?

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