Things You'll Need:
- Tax return
- Form Schedule A and its instructions
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Step 1
First, you must determine whether or not you are able to itemize your deductions. If you are doing your taxes by hand, print out Schedule A and enter all pertinent deductions on the form. If you are doing your return by computer, complete this section of the program.
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Step 2
Enter all deductions listed on Schedule A, including unreimbursed medical expenses, home mortgage interest and points paid, real estate and personal property taxes, unreimbursed work expenses, miscellaneous deductions, casualty and theft losses and charitable contributions of both cash and property.
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Step 3
Look at your state tax return from the previous year and find the number that denotes the amount you actually paid. Don't confuse this number with how much you had withheld or the amount of your refund or balance due. You need the amount that you actually owed and paid the state in taxes.
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Step 4
Transfer this number over to the Schedule A of your current tax return. This amount is added into the rest of your itemized deductions. Once you have totaled your itemized deductions, see if the total is greater than the amount of your standard deduction for 2008.
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Step 5
If your itemized deductions are less than your standard deduction, then you cannot use them and no state tax deduction can be taken. If they are greater than your standard deduction, then enter the total allowable amount on your 1040.
