Is State Income Tax Due Deductible

[Savoir Faire-Demogague in NJ]

I have a question about the deductibility of taxes due to my state from a a prior year.

I reside in NJ, and work in NYC, thusly, I pay and have withheld income tax for NY State. I take taxes paid to NY as an itemized deduction.

Each year I owe income taxes to the State of NJ, on investment income. It is typically a few hundred.

For my 2009 Tax filings I paid NJ $231, and sent the amount in last April.

Can I use this amount($231) that I paid in 2010, and take it as an itemized deduction on my 2010 Federal Return?

[mwcpa]

yes the state tax paid for 2009 in 2010 is an itemized deduction for state and local income tax paid on one's federal tax return (schedule A).

[Savoir Faire-Demogague in NJ]

Thanks for the reply....

[Taxman10]

SF - just remember, it's deductible in the year you pay it. (i.e. the $231 you paid in 2010 for 2009, is deductible in 2010, not 2009). I know some people who've basically deducted their "accrued liability.