Wednesday, April 14, 2010

Student Tax return , how to deduct the CA state TAX?

Hello Friends! i live in CA and I am a student here. I have a CA tax of 1000$ , How can I deduct tax on that. Can I deduct it by using any credits? Any ideas? Can I deduct some amount like 200 or 150 by using any extra credits deduction? Can I use ridesharing tax credit (not employee ridesharing)? There are also many other options in the CA tax extra tax credits. How can I use that? I can not itemize it becasue I am a student(Foreign student). And one of my college advisor told me that We foreign studetns do not have to pay for the CA state Tax at all. We can get the maximum return out of it.





Please help me on how to get the extra credits?


Any help is appreciated.


Thanks in advance. I am filing it under taxact.com

Student Tax return , how to deduct the CA state TAX?
State income or sales taxes are only deductible if you itemize. It's only worth itemizing if your deductions exceed the standard deduction amount for your filing status. The standard deduction for a Single taxpayer is $5,350 for 2007 so unless you have other deductible items it's not worth itemizing so you don't get any benefit from your state taxes paid. Sorry.





Correction: As a foreign student you do pay US Federal and State taxes. Depending upon the treaty status with your country, you may be exempt from Social Security and Medicare taxes for work study or OPT but not any other permitted employment. However you must file as a non-resident alien on Form 1040-NR. You don't get a standard deduction as a NRA so it would be to your benefit to itemize if you paid $1,000 in CA state income or sales taxes.
Reply:Unless you are from India, on your nonresident tax return you will deduct state taxes as itemized deductions (line 11 of 1040NR-EZ or line 37 of 1040NR.





You put treaty deduction on line 22 of 1040NR or line 6 of 1040NR-EZ.


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